According to StudentAid.gov, PSLF processing times depend on: Whether you previously submitted employment documentation for review versus submitting documentation all at once when you apply for loan forgiveness. The number of qualifying employers you've had. If you have gaps in your employment or payment history.
Loans serviced by MOHELA? If you faxed or mailed your PSLF form to MOHELA it may take up to 14 days for your mohela.com account to note that the form was received. Please allow at least 90 business days for your form to be processed.
Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF.
Starting May 1, 2024, you can continue to submit your PSLF forms, but they will be put on hold and not processed until July. We encourage you to use the PSLF Help Tool to submit your forms. This will speed up processing once the transition is complete.
Typically it takes at least 2 months to process PSLF Forms.
As of July 2024, the PSLF Program is now fully managed by the Department via StudentAid.gov, rather than by a single loan servicer, making it easier for borrowers to track their progress toward forgiveness.
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.
Generally, documents are processed within 30 days after the transfer effective date. All payments received by your prior servicer that haven't been posted to your account before transfer are sent to MOHELA for processing.
Log in to your StudentAid.gov account. From your Dashboard, navigate to “My Aid.” Select “View Details” to open your My Aid page, then scroll down to PSLF/TEPSLF Payment Progress. Select “View Details” for further payment information.
When asked by the senators, MOHELA reported it had received 36,309 complaints in a year, of which almost 4,000 were still marked “unresolved” in its internal system. The latest PSLF report, dated June 2023, by the Office of Federal Student Aid shows the servicer has a backlog of almost 890,000 applications.
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. If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.
The Biden administration has stepped up oversight of servicers coming out of the pandemic-related student loan payment pause. In October 2023, the administration withheld $7.2 million from MOHELA for failing to send timely billing statements to 2.5 million borrowers.
No. You must make 120 separate monthly payments. Paying extra won't make you eligible to receive PSLF sooner. If you make a payment for more than the scheduled payment amount, the excess amount may be applied to cover all or part of one or more future payments, unless you request otherwise.
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.
25% of rejected PSLF applications were rejected on grounds that the applicant had not entered all necessary information in their application.
A final review of your account will be done to process forgiveness, which will take at least 90 business days.
The Mohela representative I talked to said that since the payment was due on 11/18, which was a Saturday, my account could show as past due for a few days until Mohela “processes” the payment, which can take 3 business days.
Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25 years will see automatic forgiveness, even if they are not currently on an IDR plan.
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.
In July 2024, AFT sued MOHELA for a wide range of unlawful practices, including illegally executing a “call deflection” scheme to deny service to borrowers who need help.
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.
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 this link will open in a new window .
Log in to StudentAid.gov using your account username and password. Find “My Activity” in the dropdown menu under your name in the upper right-hand corner. Select the relevant PSLF form. Confirm that you and your employer have successfully signed your PSLF form within the Status Tracker.
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.