Imagine all your debt were gone—totally off your back forever. We will only determine whether an employer qualifies for PSLF based on the submission of the PSLF form. You need to certify that you are currently performing teaching service that meets the requirements of your service obligation, as explained in your ATS. Once you have made your 120th payment, submit a PSLF form to count your qualifying payments and apply for forgiveness. If you are seeking PSLF and you are currently on the Standard Repayment plan, you should switch to an IDR plan as soon as possible. After we receive your PSLF form, your loans will be reviewed for eligibility for forgiveness. Your loans will have a new disbursement date that may be after you began serving active duty. The PSLF program forgives the remaining balance on your federal Direct Loans after you’ve made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. View the benefits available to you as a dedicated member of the armed forces. The IRS doesn’t consider the amount forgiven under the PSLF program to be income, so you won’t have to pay income tax on the amount of your loans forgiven. Before you consider postponing your payments, we recommend that you explore your repayment plan options. Let’s go over the basics of Public Service Loan Forgiveness to find out whether it could work for you. Employers Eligible for Public Service Loan Forgiveness (PSLF) Three employer types qualify as public service: Government – … As a result, you WILL NOT have to pay federal income tax on the amount of your loans that is forgiven. 2. You have a network of support to help you succeed with your federal student loan repayment. Educate yourself on everything related to your TEACH Grant. You may prepay your loans (make lump sum payments) and have those payments count towards forgiveness. To get the most benefit from the program, you should switch to an Income-Driven Repayment (IDR) plan if you're not already on one. I understand. Neither the 120 qualifying payments nor the employment have to be consecutive. If you’re not eligible, the Department of Education will let you know the reasons why. And the 10 years don’t even have to be consecutive, so if you switch to the private sector or take a couple years off, you can still qualify for PSLF. This includes FFEL Program Loans that were repaid through a Direct Consolidation Loan, if they meet these criteria. Full-time employment for PSLF is defined using your employer’s definition of full-time employment or at least 30 hours per week—whichever is greater. Here are the different kinds of income-driven repayment plans: Although a 10-year standard repayment plan is a qualifying plan, you will not receive forgiveness unless you’re enrolled in an income-driven repayment plan. Providing Power of Attorney (POA) to someone you trust may be the most useful option if you have limited access to your account while you are away. Qualifying employment … Qualifying employers. For this reason, if you’ve made qualifying PSLF payments on your Direct Loans and you’re thinking of consolidating those loans along with loans you received under other federal student loan programs, you should leave your Direct Loans out of the consolidation and consolidate only your loans from other federal student loan programs. Stay updated on the student debt crisis—our report, The Domino Effect, reveals the latest trends. You cease enrollment in your TEACH Grant eligible program of study before completing the program and (unless you qualify for a suspension or discharge of the period for completing your service obligation) you do not notify us within 120 days of ceasing enrollment that: You are employed as a full-time teacher in accordance with the terms and conditions of your Agreement to Serve; or. Pay close attention to the EIN–is it the correct number and correct amount of digits? @ # $ % ^ & * _ + - = , . You request that we convert the TEACH Grants you received to Direct Unsubsidized Loans because you have decided not to teach or have decided not to teach in a qualified school or field, or for any other reason. how Federal Student Aid partners with loan servicers, list of our trusted federal student loan servicers, Options to Postpone Payments for Endorsers and Co-makers, TEACH Grants may be converted to Direct Unsubsidized Loans, TEACH Grant Suspension/Military Discharge Request Form, can only contain numbers, letters, and underscores, any of these special characters: ! If you do not know what repayment plan you are on for your Direct Loans, visit and find out. However, in some cases an IDR plan might give you a higher monthly payment than you want to pay, and your monthly payment might be lower under a traditional repayment plan. If your loans don't qualify, consolidation may make them eligible. period is approved. FedLoan Servicing In order to help people find out if they had qualifying public service jobs, in 2012, the government introduced the Employment Certification Form (ECF). Thank you for your commitment to teaching! Borrowers should understand their eligibility and make sure that this program is right for them. Submit Your First PSLF Form. Many borrowers qualify for a $0 monthly payment! For your non-qualifying plan payments to count towards TEPSLF, the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying must be at least as much as you would have paid under an IDR plan. Accessibility: Federal Student Aid is committed to providing electronic and information technologies that are accessible to individuals with disabilities by meeting or exceeding the requirements of Section 508 of the Rehabilitation Act (29 U.S.C 794d). If you plan to work in the public or non-profit sector for at least 10 years, PSLF may be the cheapest way to take care of your loans. You must serve or have served in an area of hostilities and you must qualify for or have received special pay under, A statement, such as your leave and earnings statement, detailing your receipt of hostile fire or imminent danger pay, A signed letter from a certifying official, Payment amounts based on your income and family size. With Account Access, it's now easier to stay up-to-date on your grant details. The PSLF Program takes ten years of payments and employment. And the 10 years don’t even have to be consecutive, so if you switch to the private sector or take a couple years off, you can still qualify for PSLF. Find the answers you're looking for in our FAQs. We are here to help you with every step of the process. If you have an overpayment on loans forgiven under TEPSLF, that overpayment will be applied to any other loans with an outstanding balance if applicable. You already made 120 qualifying payments. Forms Assistance can prepopulate the form making it easier and more convenient to submit your request. Fact #1: You need to work for a PSLF-qualifying employer. Serving on qualifying National Guard duty. You complete your TEACH Grant eligible program of study, but you do not begin or do not maintain qualifying employment within a timeframe that would allow you to complete your required 4 years of teaching within the 8-year period described in your Agreement to Serve. In that case, PSLF may not be right for you. A 501(c)(3) non-profit (religious organizations, certain hospitals, charter schools, private colleges and universities, and other tax-exempt entities) We recommend that you submit a new PSLF form annually. You can visit to see a list of our trusted federal student loan servicers, all of which are fully vetted. If I qualify for forgiveness, only the remaining balance on my Direct Loans will be … Although the 10-year Standard Repayment plan is eligible, if you were to stay on this plan, your loans would be paid in full by the time you made all 120 qualifying payments. Your 120 qualifying monthly payments don’t have to be made consecutively. Your most recent W-2 or your organization's Federal Employer Identification Number (EIN), The type of employer you work for (for example, a government organization), If your employer is a not-for-profit organization, the type of tax-exempt status that your employer has, if any (for example, a 501(c)(3) or a 501(c)(4) status), For the full amount due as shown on your bill, No later than 15 days after your due date, While you are employed full-time at a qualifying employer, Pay an amount to fully satisfy future billed amounts for each month you wish to prepay, Make one or more prepayments that pay your loan ahead, but if you are on an Income Driven Repayment (IDR) plan, you See for more information and for a form you can fill out when you start working to receive confirmation that your employment qualifies for the program. Relying on PSLF can limit your career options. We encourage you to submit the PSLF form whenever you change jobs to ensure your employment is still eligible. You need to provide the following: If you have an exigency arising out of the fact that your spouse, child, or parent is a covered military member on active duty (or has been notified of an impending call or order to active duty) in support of a contingency operation, you may qualify to suspend your service obligation. Each prepayment While you are serving on active duty, it may be tough to manage your account, but rest assured, you have several options. If you want to get an idea of what your payment amount may be on any of the available plans, you can utilize our Manage Repayment tool. If your loan type isn't listed above, you can consolidate your non-eligible federal student loans into a Direct Consolidation Loan to make them eligible for PSLF/TEPSLF. The first step is to see if your employment qualifies for the PSLF program. If you have multiple qualifying employers, you may meet the full-time employment requirement if you work at least 30 hours per week on average. 101(d)(5), under a call to active service in connection with a war, military operation, or a national emergency. If you’re a recent graduate, it’s best to apply after you’ve made at least one payment on your loan. The academic year for which you need to suspend your service obligation, The date you began caring for the individual, The date the health condition affected your ability to work, The date you began caring for the service member. The Public Service Loan Forgiveness (PSLF) program may offer student loan forgiveness opportunities for employees of government agencies and some nonprofit organizations. The Department of Education lists the following organizations as qualifying employment for PSLF: • Any level of … If your qualifying employment is approved, your federal student loans owned by the U.S. Department of Education will automatically be transferred to us and we will begin tracking your progress towards completing the 120 qualifying payments each time you submit a PSLF form. Our best guess, however, is that it will still be around. Called or ordered to active duty service as a member of the National Guard on full-time National Guard duty, as defined in 10 U.S.C. Apply for a forbearance to postpone payments while your account is being reviewed for forgiveness. If this is you, you must complete the Public Service Loan Forgiveness: Application for Forgiveness to apply. The Department of Education created the PSLF Help Tool to walk you through completing the PSLF form. You may qualify if you are caring for a covered service member and you are the spouse, child, parent, or next of kin to that service member. We recommend that employees submit a PSLF form once per year. Submitting the form is a way to check that you’re actually eligible for PSLF. Government organizations or agencies (Federal, state or local), 501(c)(3) organizations as defined by the IRS, and some other types of not-for-profit organizations providing designated public services qualify for PSLF.The nature of the individual's job responsibilities is not a determining factor in whether the employment qualifies. Not only does your place of work need to be a qualifying employer for PSLF/TEPSLF, the amount of time you work also needs to meet the requirements. Complete the Employment Certification for Public Service Loan Forgiveness to keep track of your eligible employment and qualifying loan payments under the Public Service Loan Forgiveness program. Although this form is completely voluntary, filling it out will help you determine if your current employment really does qualify for the PSLF. Only federal Direct Stafford Loans qualify. As explained in your Agreement to Serve, your TEACH Grants will be converted to Direct Unsubsidized Loans that you must repay in full, with interest charged from the date of disbursement, if one or more of the following occurs: We understand and appreciate the sacrifices that you make for our country. The eligible PSLF employer may include: Government organization: (federal, state, local, tribal organization, agency, or entity, a public child or family service agency or tribal college or university). The PSLF program forgives the balance on a direct loan after 120 qualifying monthly payments are made by full-time employees working for qualified employers. 1. Solution: make sure your employer qualifies for PSLF. A discharge of 1 year of your 4-year service obligation if the call or order to active duty status is for more than 3 years; A discharge of 2 years of your 4-year service obligation if the call or order to active duty status is for more than 4 years; A discharge of 3 years of your 4-year service obligation if the call or order to active duty status is for more than 5 years; A total discharge of your 4-year service obligation if the call or order to active duty status is for more than 6 years. Contact your Judge Advocate General's Corps office for more information. Box 69184 Before pursuing Public Service Loan Forgiveness, you need to ask yourself if PSLF makes sense for your financial situation. If you get a job at a government or eligible not-for-profit organization and repay your loans based on your income, you may qualify for forgiveness of your Direct Loans after 120 qualifying payments and employment. We will remind you when it is time for you to certify your status for your service obligation. may not prepay past your next annual recertification date. In order for the prepayment to qualify for subsequent months you must: A payment period is tracked as eligible when your payment meets all of the following payment eligibility requirements: An eligible payment becomes a qualifying payment when you certify your employment and all or part of your employment Request the repayment plan that best meets your needs, and consider whether you may benefit from Public Service Loan Forgiveness. When to apply Graduated From a TEACH Grant Eligible Program of Study, Didn't Complete a TEACH Grant Eligible Program of Study, Birth of a child and caring for the newborn, Placement of a newly adopted child or foster child in your home, Caring for your spouse, child, or parent with a serious health condition, A serious health condition that makes you unable to work, Caring for a covered service member with a serious injury or illness, Qualifying exigency for a covered military member. Get an Affordable Payment Based on Your Income. To qualify for forgiveness, I must have made 120 qualifying payments on my Direct Loans while employed full-time by a qualifying employer. Serving as a full-time AmeriCorps or Peace Corps volunteer counts as qualifying employment … We are here to simplify the details of PSLF for you and, where appropriate, help you find qualifying employment… whether you’re already pursuing PSLF and seeking a new employer, you’ve recently graduated, or you’re simply looking to become student debt-free in 10 years. If you do not know what type of federal loans you have, visit and find out. There are options available to lower your monthly payment amount (as low as $0 per month)! If that is true and your form still got rejected, make sure all the information is correct. If you have been granted a Power of Attorney (POA) for or are representing a service member and you need to request a temporary suspension of the service member's service obligation period, download, complete, and return the TEACH Grant Suspension/Military Discharge Request Form (PDF). , PSLF may not be filled out by an authorized Third Party can receive information! 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