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.
According to the latest data from June 2023, 71% of PSLF applications that have been denied since November 2020 (when they switched to a new reporting system) were because the applicant did not have a direct loan with 120 months of repayment or the applicant did not have 120 months of qualifying employment.
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).
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.
25% of rejected PSLF applications were rejected on grounds that the applicant had not entered all necessary information in their application.
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%.
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.
As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.
Generally, no. 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.
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.
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.
Jobs that don't qualify for PSLF
Here's a short list: For-profit organizations, including for-profit government contractors. Labor unions. Partisan political organizations.
The number of qualifying payments you have made will be updated only when you submit another PSLF form that documents a new period of qualifying employment. Once your cumulative total of qualifying payments reaches 120, we will confirm your eligibility and work with your servicer to forgive your remaining balance.
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.
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.
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.
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.
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 .
For PSLF, you're generally considered to work full time if you meet your employer's definition of full time or you work at least 30 hours per week, whichever is greater.
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.
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.
PSLF forgives your federal student debt after 10 years of payments. You must work in a qualifying nonprofit or government job. Submit a PSLF certification form annually to stay on track for forgiveness. Sign up for an income-driven repayment plan to lower your monthly payments while working toward forgiveness.