Find Out If You Are Eligible for Public Service Loan Forgiveness With This Tool
As the election draws near, student loan forgiveness has become a popular topic. While some politicians have offered student loan forgiveness , the current public service loan forgiveness (PSLF) program has run into some difficulties.
The Department of Education recently released new figures for its PSLF program, but the numbers still look bleak. According to the latest report, only 2.37% of applicants were eligible for the PSLF. Since 2018, the program has been under fire for high culling rates.One reasons for rejection are the strict criteria of the program. To be eligible for PSLF, borrowers must meet the following requirements :
- They work full time for a government or a nonprofit organization.
- They have federal direct loans .
- They have an income- driven repayment plan .
- They paid the 120 eligible student loan qualification payments on time .
To make sure you are on the right track, you can apply for the Public Service Loan Forgiveness Form : Employment Proof Form every year or when you change jobs. But, unfortunately, many borrowers do not understand whether their work meets the requirements. One of the most common reasons for rejection – 24% of applications, according to the latest report – is a lack of information. This means that the borrower does not have a certificate of employment. Fortunately, the PSLF help tool has a new feature that can make this process easier.
Last month, the Ministry of Education announced an update to the PSLF reference tool. The update includes a search for employers feature. You can now use your company’s federal employer identification number (FEIN or EIN) and hiring dates to see if your job qualifies.
The system will grant one of three statuses: Eligible, Ineligible, or Probably Not PSLF Compliant. “Probably not acceptable” means that the employer is tax-exempt but is not a 501 (c) organization. This may mean that the Department has not yet decided if your organization is eligible, but according to the website, you should not count on it.
This new update makes it easier to check if your work meets the requirements and may prevent you from submitting inappropriate forms. The department says it will continue to monitor and update the database.