Public Service Loan Forgiveness (PSLF) (2024)

FAQs

What is the success rate of PSLF loan forgiveness? ›

The initial success rate was about 0.5%, and now it's above 1% only a couple of years later. You might think that's still ridiculous, but it shows the exponential path to a 50% PSLF success rate that will happen over time and lead to more student loan forgiveness on borrowers' loans.

59% of denied applications were rejected due to too few qualifying payments. 26% of denied applications were due to missing information. As of November 2020, $118.5 billion was the total outstanding balance of borrowers eligible for PSLF.

11% of all PSLF and TEPSLF applications have been approved, according to June 2023 data from the Department of Education (673,077 approved for discharge among 6,147,812 total applications). Total discharges processed included: 19,218 for PSLF and 6,520 for Temporary Expanded PSLF.

From Oct. 6, 2021, through Oct. 31, 2022, the U.S. Department of Education (ED) implemented a change to PSLF program rules for a limited time as a result of the COVID-19 national emergency. As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver.

Along with the pros of PSLF, there are some cons. 1) Complex Eligibility Requirements. Although the Education Department has made considerable efforts to simplify and streamline PSFL, it is still complex. Borrows must meet specific requirements for loan types, repayment plans, employment status, and timely payments.

Requirements for Qualifying Payments

To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.

One-time temporary changes and permanent, long-term updates have made it easier for borrowers to qualify. As a result, more than 715,000 public servants have now had their total debt forgiven, as of early October 2023.

PSLF processing times vary based on whether you've previously submitted employment documentation and other factors. But you can generally expect to wait one to three months for your loan forgiveness application to be fully processed.

In summary, the public service loan forgiveness program could be an efficient way to pay off your student loans if you satisfy the requirements needed and have a decent student loan balance. If you are trying for the PSLF program, it is important to communicate with you loan servicer.

You must be a direct employee of a qualifying employer for your employment to qualify. This means that employees of contracted organizations, that are not themselves a qualifying employer, won't qualify for PSLF including government contractors and for-profit organizations.

How will I know if my PSLF is approved? ›

Request forgiveness on your remaining loan balance.

If you meet the requirements for forgiveness, you'll first receive a notification from the U.S. Department of Education indicating you have been approved for PSLF.

The later-adopted Temporary Expanded Public Service Loan Forgiveness program also has a strikingly high ninety-four percent plus denial rate for the over 29,000 applications for debt relief filed and processed as of that date.

At that time, when borrowers first started applying for forgiveness, we found that the PSLF program had denial rates upwards of 99%. Among reasons for denial, borrowers were told that they did not qualify because they were under the wrong loan program or had the wrong repayment plan.

The program allows borrowers employed at qualifying nonprofit organizations and government entities to have their Federal Direct Loans forgiven after ten years of repayment (or 120 qualifying payments), typically while enrolled in an Income-Driven Repayment (IDR) plan.

There is no limit to how much can be forgiven by PSLF. The program forgives the remaining balance of your federal student debt after 10 years of service and 120 payments to your federal student loans. We have seen NEA members receive forgiveness on loans with balances of $20,000, $100,000, and even more.

In summary, the public service loan forgiveness program could be an efficient way to pay off your student loans if you satisfy the requirements needed and have a decent student loan balance. If you are trying for the PSLF program, it is important to communicate with you loan servicer.