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.
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.
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. You'll then be required to resume making payments on your loans.
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%.
PSLF applications that were submitted were incomplete or didn't have all of the required information necessary to process the application. As newer reports were released, “missing information” continued to be the reason why 23% to 26% of PSLF applications were rejected through November 2020.
As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.
The initial success rate was about 0.5%, and now it's above 1% only a couple of years later. You might think that's still ridiculous, but it shows the exponential path to a 50% PSLF success rate that will happen over time and lead to more student loan forgiveness on borrowers' loans.
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.
Does my income level determine my eligibility for Public Service Loan Forgiveness (PSLF)? There is no income requirement to qualify for PSLF.
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.
PSLF Process
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.
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.
PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying payments while working full-time for a qualifying employer. Only payments made under certain repayment plans (primarily income-driven repayment plans) qualify for PSLF.
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.
What will happen if my Public Service Loan Forgiveness (PSLF) application is approved? If you are approved for Public Service Loan Forgiveness, you'll be notified that the entire remaining balance of your eligible Direct Loans, including all outstanding interest and principal, will be forgiven.
Contrary to some perceptions, that's not because the Department of Education is capriciously denying borrowers relief to which they are legally entitled; most PSLF applications were rejected because borrowers have not met program requirements.
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.
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.
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.
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.
Along with the pros of PSLF, there are some cons. 1) Complex Eligibility Requirements. Although the Education Department has made considerable efforts to simplify and streamline PSFL, it is still complex. Borrows must meet specific requirements for loan types, repayment plans, employment status, and timely payments.
There are no income limits for the PSLF program. However, if your income is high relative to the balance of your student loans, you might not qualify for an income-driven repayment (IDR) plan.
A final review of your account will be done to process forgiveness, which will take at least 90 business days.
Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.