Before You Apply for PSLF Check out These 4 Surprising Requirements

It is not surprising that forgiveness of loans to public services is one of the most talked about student loan programs. But this is often misunderstood. Trying to find out if you have the right, and when to apply, seems as difficult as getting a diploma.

To answer some questions and clarify misconceptions, here are four amazing facts about the Forgiveness Program for Public Service Loans.

Fact # 1: Your employer, not you, must meet the requirements.
To qualify for the PSLF program, your employer must be a very specific type of organization. The focus is not on the work you do, but on the organization for which you do it.

Qualifying employers whose employees can apply for PSLF are:

Non-profit organizations that are exempt from taxes under Section 501 (c) (3) of the Tax Code
Any local, state, federal or tribal government organization
Some non-profit organizations with relevant government services
Some volunteer organizations, such as the Peace Corps and AmeriCors
There are certain groups that may seem to fall under the category of public service, but do not. For example, trade unions, political parties, commercial groups or non-profit groups that are not subject to Section 501 (c) (3) of the Tax Code cannot be considered employers of the public service.

If you are not sure that your employer is a valid PSLF employer, click on the link to the relevant government services above or contact your company’s personnel department.

Fact number 2: You must be a full-time employee.
Part-time workers will not be eligible for forgiveness of a government service loan, even if they work for a current employer PSLF. You must work at least 30 hours a week, or as much as your employer considers full-time.

In addition, it should be noted that the more than 30 hours rule deserves to be mentioned that none of this time can be spent on any religious functions, such as teaching, worship or proselytism.

Fact number 3: You must have appropriate loans.
Only loans received under the Direct Loan Program can be forgiven for a loan to government employees.

The only way to get federal Perkins loans, federal family education loans, or any other type of federal loan that meets the PSLF requirements is to combine them into a direct consolidation loan.

Unfortunately, none of your previous payments prior to consolidation using a direct consolidation loan will be considered one of the 120 required qualifying payments.

If you do not know if your federal student loans match the PSLF program, log in to the Federal Student Aid website to find out what loans you have.

Fact number 4: You must make 120 suitable loan payments.
First, only payments made after October 1, 2007 will potentially qualify as one of the 120 mandatory payments required for forgiveness of a loan.

Secondly, the redemption plan that you used to make these payments matters.

Fortunately, the payments you make in accordance with the income-based redemption plan are recorded in the PSLF. Your payments are acceptable if you make payments on a direct consolidation loan using the following plans:

Revenue Based Redemption Plan (IBR)
Pay as you earn a plan (PAYE)
Revenue Based Redemption Plan (ICR)
Another factor to consider is: will you have a debt after 120 payments? It takes a lot of time to make 120 loan qualification payments (minimum 10 years), and many borrowers will not have much money left on their federal balance of student loan debt.

However, your payments can be as low as $ 0 per month, especially if you participate in the IBR program. It depends on your income and the repayment plan in which you are registered.

The essence
PSLF typically serves borrowers who have difficulty repaying loans due to low salaries and / or high student loan balances.

If you are eligible to participate in the Civil Service Loan Forgiveness Program, the balance after 120 qualifying payments will be forgiven.

To verify that you meet the requirements, it is recommended that you submit your job application form to your loan specialist each year. This way you can, rather than later, find out if you are in line with your current job.

Not everyone who thinks that they meet the requirements will actually do it, so be sure to spend your research

For additional information : https://studentloansresolved.com/

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