Only loans that are part of the federal direct loan program are eligible for PSLF. To qualify for PSLF, you must work full time for a qualified employer or at least 30 hours per week. Eligible loans include federal Direct Loan Program and federal loans that were consolidated into a federal consolidation loan. Private student loans, federal family education loans (FFEL) and federal Perkins loans are not eligible for public service loan forgiveness.
Active duty service members may qualify for student loan deferrals and deferrals that help them during periods when the service inhibits their ability to make payments. The Department of Education offers a public service loan forgiveness aid tool to assist borrowers with their applications. Once you are ready to apply for PSLF, you will need to complete and submit the Public Service Loan Forgiveness Application and Certification Form. Colin Beresford is a student loan writer at NerdWallet and aims to help people make the best possible decisions when paying for an education.
You will then need to verify that you work for an eligible employer and file a PSLF form, also before October. Refinancing student loans can save you money and help you get rid of debt faster by lowering your interest rate. If the Department previously said that your employer was not eligible for PSLF, then you must submit a new form through the PSLF Help Tool to see if you can receive credit for forgiveness. The Department estimates that the limited exemption alone will help more than 550,000 borrowers who had previously consolidated their loans to automatically see their progress toward PSLF grow, and the average borrower will receive 23 additional payments.
The consolidation loan application does not currently include a checkbox to request these repayment plans, so you must apply separately. Any previous payment made while working for a qualifying employer will count as an eligible payment, regardless of the type of loan or repayment plan. That means you may still be able to get your loans forgiven if you return to an eligible job at a later date. There you'll see a list of every loan you've borrowed, even if you've canceled or consolidated it into a new loan.
If you have a combination of FFEL loans and Direct Loans, please refer to the sections above to understand how your Direct Loans will be affected. Many borrowers report discrepancies in their PSLF payment counts, and PHEAA, the student loan servicer responsible for processing PSLF payments, has reached an agreement with the Massachusetts Attorney General to review PSLF applications for possible errors. You can consolidate other types of federal student loans, federal family education loans, or Perkins loans to make them eligible for PSLF.