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Did You Know…?

April 30, 2018 | Weekly Commentary

by David Givler, Senior Associate
If you are employed full time by a government organization (federal, state, local, or tribal) or a not-for-profit organization tax-exempt under Section 501(c)(3) of the IRS Code you may eligible for student loan forgiveness. The Public Student Loan Forgiveness Program (PSLF) works to absolve student loans after certain criteria is met.

First, your loans must have been received under the William D. Ford Federal Direct Loan Program (Direct Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans). Loans under the older Federal Family Education Loan Program may be able to qualify through consolidation, but careful research and consideration should be made before doing this as there are specific rules to follow.

Second, you must make 120 months of qualifying monthly payments. Qualifying monthly payments are: (1) payments made after October 1st, 2007, (2) paid under a qualifying repayment plan, (3) for the full amount due as shown on your bill, (4) paid no later than 15 days after due date, and (5) made while employed full-time by a qualifying employer. Payments made while your loans are in-school status, grace period, deferment, or forbearance do not count toward the required 120 payments.

To apply, you must first complete the Employment Certification for Public Service Loan Forgiveness form whenever you change employers. After making 120 months of qualified payments you must submit the PSLF application.

For further information regarding where to send the forms, how many qualified payments you might have made, your loan details, contact information, and other helpful resources please visit the Federal Student Aid website.

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