Given persistent wage differences between comparable jobs in the public and private sectors, Congress created the Public Service Loan Forgiveness (PSLF) program in 2007 through the passage of the College Cost Reduction and Access Act.
The Public Service Loan Forgiveness (PSLF) program is a United States government program that was created under the College Cost Reduction and Access Act of 2007 signed into law by President George W.
The PSLF Program was established by Congress with the passage of the College Cost Reduction and Access Act of 2007, and was created to encourage individuals to enter lower-paying but vitally important public sector jobs such as military service, law enforcement, public education, and public health professions.
The PSLF Program forgives the remaining balance on your Direct Loans* after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. The PSLF servicer (currently PHEAA/FedLoan Servicing) administers PSLF for all Direct Loan* borrowers.
Congress created the Public Service Loan Forgiveness (PSLF) program in 2007 as part of the College Cost Reduction and Access Act (the “Act”). The final bill passed with wide bipartisan majorities before being signed into law by President George W.
As of July 1, 2024, the PSLF program has successfully transitioned from MOHELA and now is fully managed by ED on StudentAid.gov. For all inquiries surrounding your PSLF discharge and any associated refunds, visit StudentAid.gov.
“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.
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.
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.
History. President George H. W. Bush authorized a pilot version of the Direct Loan program, by signing into law the 1992 Reauthorization of the Higher Education Act of 1965.
One-time temporary changes and permanent, long-term updates have made it easier for borrowers to qualify. As a result, more than 715,000 public servants have now had their total debt forgiven, as of early October 2023. This is no small matter: the average relief is nearly $70,000 per borrower!
As of July 1, 2024, the PSLF program has successfully transitioned from the previous specialty servicer and now is fully managed by ED on StudentAid.gov. We have resumed processing of PSLF forms and are currently working to update PSLF payment counts.
“Four years ago, President Biden made a promise to fix a broken student loan system. Today, life-changing student debt relief is possible for more than five million borrowers—more than any other administration in history,” said U.S. Secretary of Education Miguel Cardona.
What loans can be forgiven? Only Direct Loan Program loans that are not in default are eligible for PSLF and TEPSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible 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.
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.
What Is Public Service Loan Forgiveness? PSLF was introduced in 2007 to incentivize more people to pursue careers in public service by erasing some of their student debt from federal loans.
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.
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.
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.
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).
If you work in certain public service jobs and make 120 payments on your Direct Loan(s), you may be eligible to have your loans forgiven. If you are a teacher in a low-income school or educational service agency, you may be eligible for Teacher Loan Forgiveness.
Borrowers can continue to submit PSLF forms, but they will not be reviewed until the transition is completed. After July 1, the department will resume processing PSLF employment certifications and loan forgiveness requests, and borrowers should be able to access their PSLF data.
Typically, months in forbearance and deferment do not count towards PSLF. However, months during the COVID-19 payment pause (March 2020-September 2023), months that qualify under the IDR Adjustment, and months where loans are being placed on administrative forbearance after the repayment restart will count toward PSLF.