What is the success rate of PSLF forgiveness?

Asked by: Verona Gottlieb  |  Last update: February 7, 2025
Score: 4.7/5 (52 votes)

Current PSLF numbers aren't any better. Of the 2 million folks who have applied for PSLF and met employment requirements since 2020, fewer than 1% have actually received forgiveness under the original setup.

What percent of PSLF is approved?

Among processed applications for Public Service Loan Forgiveness (PSLF), 2.3% have been accepted since November 2020. Among denied claims, 24.6% are denied due to incomplete paperwork. 14.4% of PSLF applications have yet to be processed.

How hard is it to get approved for PSLF?

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 is the denial rate for PSLF?

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.

Why were so many people denied PSLF?

Most denials are for not making enough qualifying payments.

PSLF explained! Public Service Loan Forgiveness EXPLAINED!

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What is the downside to PSLF?

Required Commitment and Lengthy Duration

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 PSLF forgive all of your loans?

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.

Do people actually get public service loan forgiveness?

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.

What is the average time for PSLF approval?

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.

Can your income be too high for PSLF?

Does my income level determine my eligibility for Public Service Loan Forgiveness (PSLF)? There is no income requirement to qualify for PSLF.

How successful is PSLF?

Current PSLF numbers aren't any better. Of the 2 million folks who have applied for PSLF and met employment requirements since 2020, fewer than 1% have actually received forgiveness under the original setup.

What is the maximum amount for PSLF?

Is there a limit on the dollar amount that can be forgiven? There is no limit to how much can be forgiven by PSLF.

How do you know when PSLF is approved?

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.

Why is PSLF so hard to get?

To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.

Has anyone actually gotten student loan forgiveness?

As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.

What are the odds of getting PSLF?

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%.

How fast is MOHELA processing PSLF?

Please allow at least 90 business days for your form to be processed. Loans NOT serviced by MOHELA? Your demographic information will not be on file until the PSLF form is processed which is currently taking at least 90 business days. Once processed your loans will be transferred from your current servicer to MOHELA.

What happens after my PSLF application is approved?

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.

Is it easy to qualify for PSLF?

Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF.

What percentage of PSLF applications are approved?

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.

What is the denial rate for public service loan forgiveness?

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.

Can you be denied public service loan forgiveness?

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.

Does PSLF actually save money?

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.

Will I get a refund after PSLF?

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.

What if Mohela says I have 120 qualifying payments?

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.