If you have loans that have been in repayment for more than 20 or 25 years, those loans may immediately qualify for forgiveness. Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones.
You must be a direct employee of a qualifying employer for your employment to qualify. This means that employees of contracted organizations, that are not themselves a qualifying employer, won't qualify for PSLF including government contractors and for-profit organizations.
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).
The actual policy is that you should receive a refund for every payment made after the 120th payment (which should be the ``effective'' date of forgiveness), on the *current* loan. (So, if you consolidated less than 10 years/120 payments ago, you're probably out of luck for a refund.)
“People who cannot afford their student loans because they are in public service, have disabilities, were cheated by their college, or who have completed decades of payments are now getting the relief they were promised. These permanent reforms will continue to more and more borrowers every year.”
A refund check is money that is directly deposited to you by your college. It is the excess money left over from your financial aid award after your tuition and additional fees have been paid. Your college may send you a check or the money may be deposited into your checking account.
The two main categories of employers in public service work are non-profit organizations (the voluntary sector) and government organizations (the public sector) of all types and sizes.
To qualify for PSLF, you must be employed full-time at a US government organization at any level (federal, state, local, or tribal) – including US military service, or a qualifying nonprofit organization. Full-time employment is defined as a minimum of 30 hours per week.
The undersupply of public service workers
Data on the programs of study among individuals who hold federal student loans suggests that nurses, medical assistants, law-enforcement officers, teachers, and social workers comprise the largest public service occupations among debt holders.
Only borrowers who have entered repayment on at least one of their loans when the debt relief is applied would be eligible for forgiveness on the loan(s) in repayment.
Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you'll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire.
Once we've received all of the documentation needed to determine whether you qualify for loan forgiveness, you'll be notified.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
Many student loan borrowers have an opportunity to receive full student loan cancellation or more credit towards cancellation. The U.S. Department of Education will conduct a one-time adjustment this summer , but you may need to take steps to qualify. The deadline to act is June 30, 2024. Here's what you need to know.
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.
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.
After you make your 120th qualifying monthly payment for PSLF, you'll need to submit the PSLF form to receive loan forgiveness. You must be working for a qualifying employer at the time you submit the PSLF form.
Public services include people and organizations in Government and Diplomacy (elected officials, agency workers, diplomats), Education and Teaching (public school teachers, school administrators), Public Safety (police officers, firefighters, health workers), Non-Profit Organizations, and Environment and Conservation.
A public servant is a person who is appointed or elected to a public office, for example, working for a local or state government.
You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years.
You earned below the threshold
Get a refund if your annual income for a previous tax year was below the repayment threshold.
You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer's website or on your credit report. This does not mean you've received loan forgiveness. This is part of the loan transfer process.