If you qualify, you should receive PSLF automatically and get a notification from your student loan servicer. After that, if an overpayment is identified, you can expect a refund within a couple of weeks or up to two months.
However, if you're seeking a refund from MOHELA, you can expect the first check to arrive within 90 business days, and the rest within 60 days. Also note that you'll likely receive multiple refund checks rather than a single refund.
Once it's approved, it would typically take 4-6 weeks for the Department of Education to process the refund.
Log in to your StudentAid.gov account. From your Dashboard, navigate to “My Aid.” Select “View Details” to open your My Aid page, then scroll down to PSLF/TEPSLF Payment Progress. Select “View Details” for further payment information.
Don't forget to submit the PSLF form with your employment certification every year. If your PSLF form is approved for forgiveness, then you'll be notified that the entire remaining balance of your eligible Direct Loans will be forgiven, including all outstanding interest and principal.
Like loan forgiveness itself, refunds resulting from forgiveness through the Public Service Loan Forgiveness (PSLF) Program are not taxable. However, if you owe the federal government another debt such as unpaid child support or unpaid taxes, your refund may be offset.
After you've reached 120 payments and all other PSLF requirements are met, you must request forgiveness of your remaining loan balance using the PSLF form. After this request is made, a final review of your account will be performed to process forgiveness, which will take about 60 business days.
Refunds. If there are any funds from the grant or student loan disbursements left over after tuition, fees, and room and board are paid, the remaining balance — often called a “credit balance” — will be paid directly to you in the form of cash or check, or else deposited into your bank account.
The impact of student loan forgiveness depends greatly on a borrower's unique credit profile. Some may see a slight dip, but forgiveness will have a net positive effect for most.
Online: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled. Phone: 2-4 business days from the payment processing date to post. However, the payment will be effective the date your payment was scheduled.
If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit. You can have a refund check mailed to you, or you may be able to have your refund deposited directly into your bank account.
Once you request a student loan refund, there will be a wait before you receive your money. The refunds aren't automatic because loan servicers need to process refund requests through the Department of Education.
Loans serviced by MOHELA? If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.
Your Financial Aid refund can be used towards any education-related item listed in the cost of attendance such as such as books, transportation, housing, food, and miscellaneous expenses. This also means you are solely responsible for budgeting this refund throughout the semester.
If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven.
If you qualify for a refund, expect to receive it within about two months of the loan forgiveness.
You can check online or contact your financial aid office to see the status of your financial aid refund disbursement.
Financial aid funds will typically start to disburse (meaning post to your tuition and fees account balance) 10-14 days after the “Last day to drop with a refund” for your latest starting classes. Different types of aid (such as Pell Grants, Student Loans, or Scholarships) may post on different days.
If you made payments after your 120th qualifying payment, those payments will be treated as overpayments and refunded to you if you have no additional outstanding loans. If your qualifying payment total is at 120 or more, your account is eligible to be placed into forbearance and no payment is due.
PSLF has erased $74 billion worth of student loans for more than one million public servants as of Oct. 17, 2024, according to the Education Department, which boils down to an average of $74,000 in debt forgiveness per borrower.
The number of qualifying payments you have made will be updated only when you submit another PSLF form that documents a new period of qualifying employment. Once your cumulative total of qualifying payments reaches 120, we will confirm your eligibility and work with your servicer to forgive your remaining balance.
Are loan amounts forgiven under Public Service Loan Forgiveness (PSLF) considered taxable by the Internal Revenue Service (IRS)? According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. Learn more about the PSLF process.
No. According to the Internal Revenue Service (IRS), student loan amounts forgiven under PSLF or TEPSLF aren't considered income for tax purposes.