Public Service Loan Forgiveness (PSLF)/Temporary Expanded Public Service Loan Forgiveness (TEPSL)
- Berley B, MS
- Oct 4, 2022
- 3 min read
My public servants, you are appreciated, and you deserve a raise. Until then, take advantage of the Public Service Loan Forgiveness (PSLF) and the program changes in effect THROUGH October 31, 2022. Unlike the new changes for the PresidentJoe’s Loan Forgiveness, the PSLF applies to Federal Family Education Loan, however, you may have to consolidate your loans into a direct loan to be eligible.
Now, it gets even a bit better for us, Public Servants, the Temporary Expanded Public Service Loan Forgiveness (TEPSLF). Under the TEPSLF, you may receive credit for past period of repayment where you would not qualify under the regular PSLF- NO MATTER YOUR LOAN TYPE, REPAYMENT PLAN, AND WHETHER OT NOT YOU MADE YOUR PAYMENTS IN FULL AND/OR TIME. Ok, let’s say:
You graduated in June 2011
You work for a nonprofit/government agency
You started making payments in January 2012 of $300
Then life happens, June 2012, you stopped making payments on time and you only were making $10/month instead of the $300 until July 2018.
Under the regular PSLF, those 6 years would not count. HOWEVER, under the TEPSLF, you would receive credit for those years that would then qualify you for the PSLF (10 years/120 payments) needed to forgive your student loan debts. Sounds way better, right?!? Check the link below to learn more:
You can receive credit only for periods of repayment after Oct. 1, 2007, when the PSLF Program began
Below is a breakdown of the rules under both programs
Summary of New Rules Under Limited PSLF Waiver Until October 31, 2022
Receive credit for periods of repayment on Direct, Federal Family Education (FFEL) Program Loans, or Perkins Loans
Any prior period of repayment will count as a qualifying payment after October 1, 2007, regardless of loan program, repayment plan, or whether the payment was made in full or on time
Periods of repayment on loans before consolidation count, even if paid late, or for less than the amount due
Can get forgiveness even if you are not employed or not employed by a qualifying employer at the time of application and forgiveness
If you got Teacher Loan Forgiveness, the period of service that led to your eligibility will count toward PSLF (if you certify employment for PSLF for that period)
Periods of military related service for certain periods of deferment and forbearance count
Months spent in deferment before 2013, excluding in-school deferment, will count under the waiver. Additionally, ED will include Economic Hardship Deferment on or after January 1, 2013. These periods of deferment will be applied in fall 2022
12 or more months of consecutive forbearance or 36 or more months of cumulative forbearance (not including the COVID-19 Forbearance) will count for periods of certified qualifying employment. These periods of forbearance will be applied in fall 2022
Unchanged PSLF Rules
Certifying qualifying full-time employment for the periods of time for which you want credit toward PSLF
Credit is only for periods of repayment after October 1, 2007, when the PSLF Program began
Certain periods of deferment or forbearance (not including the COVID-19 Forbearance), and periods of default, do not qualify
Must make 120 qualifying payments or the equivalent
Being employed by government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a ovesqualifying service
Having Direct Loans or consolidating into Direct Consolidation Loans
Parent PLUS loans are not eligible to contribute to additional underlying payment counts under the limited PSLF waiver, but payments made once they have been consolidated into a Direct Consolidation Loan do
Below is another link where you can have most of your questions answered, but if you have specific questions, contact your service loan provider, they will absolutely help you.
Again, please take advantage of this, and apply for the TEPSLF BEFORE 10/31/2022. Also, don’t forget to subscribe to the U.S. Department of Education’s emails. The link is below:
Ok Loves, that's it for now :)
Comments