What to Know About the Extended Public Service Loan Temporary Discount Put away student loans

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The Extended Temporary Public Service Loan forgiveness offers federal student loan borrowers the opportunity to qualify for a loan forgiveness if some or all of their payments were made under a repayment plan that is not eligible for the public service loan forgiveness program. If you’re worried that you might be in this situation – or if you weren’t eligible for a loan forgiveness for this reason – here are some things you need to know.

What is a utility loan discount

The PSLF was created to provide debt relief to federal student loan borrowers entering public service careers that benefit society but often pay lower wages, such as social work and education. The PSLF can write off some federal student loan debts, but the borrower must meet all of the detailed program requirements.

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Unfortunately, the requirements are more complicated than many realize. The US Department of Education began accepting and reviewing PSLF applications in 2017, and as of June 2018, nearly all applicants – 99% – were deemed ineligible. In fact, over 80% of applicants had no qualifying loans in repayment for at least 10 years.

Approval rates for the PSLF have since increased, but the extremely high ineligibility rate is discouraging many borrowers.

The good news is that many of these borrowers may become eligible for a loan forgiveness in the future. For example, the latest data from the Federal Student Aid Office of the Department of Education shows that nearly a quarter of borrowers were ineligible due to missing or incomplete information on their form, and that many ‘others had simply not been reimbursed for 10 years.

Temporary waiver of the extended civil service loan

In response to the high ineligibility rates, Congress created the TEPSLF – a new opportunity to extend relief to direct student loan borrowers who have made some or all of their monthly payments on time under the wrong plan. repayment. This is a common reason why applications are not eligible. If you find yourself in this situation, here are four things you should do to be considered for TEPSLF:

  • Check your eligibility for the PSLF.
  • Be ineligible for the PSLF.
  • Read the TEPSLF requirements.
  • Apply for the TEPSLF exam.

Check your eligibility for the PSLF. You are eligible for TEPSLF only if you meet all of the PSLF requirements but have made certain payments in the wrong repayment plan. Read the PSLF requirements very carefully and make sure you understand how each requirement is defined. There are detailed nuances that matter.

For example, it is your employer who determines if your job is eligible, not your job title. You must work for a government organization or a non-profit organization, regardless of your profession. This means that some nurses may be eligible – for example, if you are employed by a non-profit hospital – and others not, such as a nurse employed in a private for-profit practice.

Use the PSLF Help Tool to verify your eligibility and assess if there are other issues with your application. If you have questions or need assistance, call FedLoan Servicing at 855-265-4038.

Be ineligible for the PSLF. It may seem counterintuitive, but in order to be eligible for TEPSLF, you must have submitted an application to the PSLF and have been deemed ineligible. The claim should have been ineligible only because some or all of your payments were not made under an eligible repayment plan for PSLF. There are no other reasons that qualify for TEPSLF.

Read the TEPSLF requirements. It is important to read the TEPSLF requirements carefully and make sure you understand them.

For example, the amount you paid 12 months before requesting the TEPSLF and the last payment you made before requesting must be at least equal to what you would have paid under a repayment plan based on the TEPSLF. income. If you have trouble calculating this amount to determine your eligibility, FedLoan Servicing will do the calculation when you request.

You should also be aware that the Education Department will re-examine your eligibility using an expanded list of eligible repayment plans, which includes Extended Repayment Plan, Gradual Repayment Plan, Consolidation Gradual Repayment Plan. and the standard consolidation repayment plan and.

As with the PSLF, only federal direct loans are eligible for TEPSLF. If you made your payments on another type of federal student loan, you are not eligible for TEPSLF.

Apply for the TEPSLF exam. To apply, email FedLoan Servicing at [email protected] requesting that the Education Department reconsider your PSLF eligibility. Include the same name you submitted your PSLF application under and your date of birth in the email.

You can send this email even when your PSLF request is pending – just make sure to submit and receive confirmation from FedLoan Servicing before sending your TEPSLF email. The education department provides the project language for this email on the TEPSLF page.

Once your TEPSLF eligibility exam is completed, you will receive an email that will notify you of the status of your application and let you know if you need to submit any additional information. Note that TEPSFL has limited funding and will end when funds run out.

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