Student loan: what is the PSLF program and who is eligible for student loan forgiveness?

IOriginally launched in 2007, the Civil Service Loan Cancellation Program was designed to provide civil servants in the the United States of America with the possibility of get help repaying their loans faster.

The vast majority of applicants were turned down before the rule change last October, but the student loan waiver has been extended to more civil servants in the past year.

In fact, the Ministry of Education advised in March that it had identified 100,000 borrowers eligible for student debt cancellation due to the aforementioned changes.

Who is eligible for the PSLF program?

It is estimated that over $8 billion in federal student loans have been forgiven through the PSLF program. To be eligible, you must be employed by a U.S. federal, state, local, or tribal government or nonprofit organization.

You must also have federally guaranteed loans and you must make 120 qualifying payments, or 10 years of payments.

Teachers, nurses and firefighters are some of the borrowers who could benefit from the scheme.

“To ensure you are on the right track, you must submit certification and application for Public Service Loan Forgiveness (PSLF) and Temporary Expanded PSLF (TEPSLF) each year or when you change employers,” reads the federal student aid official. website.

“We will use the information you provide on the form to let you know if you are making eligible PSLF payments. This will help you determine if you are on the right track as soon as possible.”

What is the deadline for applying for a PSLF pardon?

Although the sooner you apply the better for you, the Ministry of Education has set October 31 as the deadline for claiming PSLF benefits.

According Martin Lynchdirector of education at Cambridge Credit Counseling Corp, the process can take time, meaning borrowers must complete it “at least 45 days before filing the PSLF application.”

Comments are closed.