According to the latest data from June 2023, 71% of PSLF applications that have been denied since November 2020 (when they switched to a new reporting system) were because the applicant did not have a direct loan with 120 months of repayment or the applicant did not have 120 months of qualifying employment.
How difficult? It is as difficult as: having the right kind of loans; working qualifying job(s) for 10 years; while paying your loans back on an income-driven repayment plan.
The later-adopted Temporary Expanded Public Service Loan Forgiveness program also has a strikingly high ninety-four percent plus denial rate for the over 29,000 applications for debt relief filed and processed as of that date.
Once we've received all of the documentation needed to determine whether you qualify for loan forgiveness, you'll be notified. A final review of your account will be done to process forgiveness, which will take at least 90 business days.
Applications are approved at roughly the same rate. 2.3% of processed applications for PSLF had been approved since the program's inception. In the program's first year, 0.32% of applications were approved. Prior to 2021, 3.3 million student loan borrowers were eligible to apply for PSLF (though only 6.9% applied).
“Errors, even as minor as spelling mistakes, can cause rejections. For PSLF for example, borrowers must thoroughly fill out an Employer Certification Form (ECF) with all of their previous employers, their Federal Employer Identification Numbers, tax status, and other details.
Important: If your employer is a for-profit organization, a labor union, or a partisan political organization, it isn't an eligible PSLF employer regardless of the kinds of public services it might provide.
One of the notable drawbacks of PSLF for doctors is the required commitment. To be eligible for forgiveness, you must make 120 qualifying payments, which essentially means 10 years of service in a qualifying organization.
Yes. However, you must submit a PSLF Form showing that you were employed full-time by a qualifying employer at the time you made each of the required 120 payments.
A lot of people apply for PSLF, but the odds of actually having your loans forgiven through this program are extremely low. Between September 2020 and June 2023, almost 4 million PSLF applications were processed, and only 19,218 of them resulted in forgiveness—that's only 0.5%.
After this request is made, a final review of your account will be performed to process forgiveness, which will take about 60 business days. If you meet the requirements for forgiveness, you'll first receive a notification from the U.S. Department of Education indicating you have been approved for PSLF.
Your remaining balance after you make 120 qualifying payments and apply for PSLF is the amount you'll have forgiven. Ultimately, the amount forgiven depends on your income, family size, and loan balance. While you're enrolled in one of our IDR plans, the amount you pay each month is determined by your income.
Does my income level determine my eligibility for Public Service Loan Forgiveness (PSLF)? There is no income requirement to qualify for PSLF.
It may initially lower your credit score as the forgiven debt could be reported as “income,” which may increase your overall income-to-debt ratio. However, over time, having fewer loans and lower debt could improve your credit score.
The newest IDR plan, SAVE, will be the best option for most borrowers. SAVE caps your monthly payments at 5% to 10% of discretionary income, and if you earn under a certain threshold — about $62,500 for a family of four — you get $0 monthly payments, while still earning PSLF payment credit.
11% of all PSLF and TEPSLF applications have been approved, according to June 2023 data from the Department of Education (673,077 approved for discharge among 6,147,812 total applications). Total discharges processed included: 19,218 for PSLF and 6,520 for Temporary Expanded PSLF.
The Department of Education denied 98% of PSLF applications between November 2020 and October 2021. Some borrowers discovered they weren't eligible for forgiveness after making years of payments working in what they thought were qualifying positions.
If you have a large amount of student loan debt, then Public Service Loan Forgiveness (PSLF) could potentially save you thousands of dollars. It also might knock years off your student loan repayment timeline. You must meet all of the criteria to be eligible for college loan forgiveness, but the payoff can be worth it.
“Errors, even as minor as spelling mistakes, can cause rejections. For PSLF for example, borrowers must thoroughly fill out an Employer Certification Form (ECF) with all of their previous employers, their Federal Employer Identification Numbers, tax status, and other details.
This includes employers such as the U.S. military, public elementary and secondary schools, public colleges and universities, public child and family service agencies, and special governmental districts (including entities such as public transportation, water, bridge district, or housing authorities).
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.
Typically it takes at least 2 months to process PSLF Forms. During the busiest PSLF Waiver periods, estimates were between four and six months. If you're still within those time periods, continue waiting. You can always go to the My Activity page on studentaid.gov to check the status.
One of the primary requirements of the program is that a borrower make 10 years' worth of payments (120 on-time payments). But according to the Department's data, 80% of Direct Loan borrowers who were rejected for PSLF didn't have a loan that entered repayment 10 years ago.
What will happen if my Public Service Loan Forgiveness (PSLF) application is denied? If we determine that you're not eligible for loan forgiveness at this time, you'll be notified and will be provided with the reason(s) we determined you were ineligible.