MyFedLoan PSLF (Public Service Loan Forgiveness) is a scheme that the US government established to assist those employed in public service. Under this initiative, qualifying borrowers can have their outstanding balances on federal student loans remitted if they make 120 compliant monthly payments within a qualifying repayment plan.
The motive of this program is to ease the economic burden for people serving in local government units or non-profit organizations among other fields of social work so as to enable them to manage and offset their school loan debts better in the future.
This guide will give a comprehensive view of MyFedLoan PSLF. It will break down the program and look at how it benefits those involved with public service work as well as explore the former role of MyFedLoan in this budget.
MyFedLoan PSLF: What is it?
MyFedLoan Forgiveness is a government program designed to relieve certain public service staff from their education debts. Well, let’s face it:
- Make 120 qualifying monthly payments: Over ten years, make full time monthly payments on agreed dates while working for an eligible employer.
- Federal Direct Loans only: Only Federal Direct Loans qualify for this program. If you have other types of federal or private loans, you may need to consolidate them into Direct Loans first.
- Work for a qualifying employer: It specifically includes jobs in any level of government that comes under federal/state/local/tribal agencies and non-profit organizations classified under section 501(c)(3).
Once an individual meets these conditions, his/her Direct Loans balance will be canceled out. That’s pretty good if you ask me, when faced with huge amounts of money that should be directed towards repayment of my school fees.
Who is Eligible for PSLF?
Who is potentially eligible for MyFedLoan PSLF (or alternatively MOHELA-serviced PSLF program)? Here are some interesting bits of information.
- Government workers: Teachers, nurses, fire fighters, librarians, social workers, military personnel and others. A comprehensive list can be found at Federal Office of Student Aid website (https://studentaid.gov/pslf/).
- Direct Loans recipients: This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate or professional students and Direct Consolidation Loans.
- Participation into an approved payment plan: This payment scheme will mostly be based on your earnings and family size often referred to as income-driven repayment (IDR).
Important Note: It is always advised that individuals fill in the PSLF form year after year even if doubts exist about eligibility so as to be able to track their progress without being caught off guard when changes occur.
PSLF Full-Time Employment Requirements
As noble as saving the world (or at least your community) may be, PSLF necessitates that you are a full-time employee with an eligible employer. Below is a breakdown of what that entails.
- Minimum 30 hours per week: This is the typical benchmark for full-time employment. However, some organizations define it differently. Consult your HR department for clarification.
- Consistent employment: You must have been working consistently for at least 12 months (or its part-time equivalent) to qualify for all-year credit toward PSLF.
Qualifying Employers for MyFedLoan PSLF
The good news is that many public service jobs qualify for PSLF. Some of them are:
- Government positions: Federal, state, tribal or local government agencies
- 501(c)(3) non-profit organizations: This includes public interest organizations, charities, and educational institutions.
- AmeriCorps positions: Serving in AmeriCorps qualifies for PSLF.
Important Note: However, this list is not exhaustive and there is an extensive search available at Federal Student Aid website (https://studentaid.gov/pslf/employer-search). In case you have doubts regarding qualification of your employer use the PSLF Help Tool (https://studentaid.gov/pslf/) to clarify on this matter.
MyFedLoan Forgiveness program is a game-changer for public service workers with federal student loans. MyFedLoan has recently shifted to MOHELA as the servicer; hence you may have questions regarding eligibility for forgiveness.
Get ready! this section will be your guide through qualifying payments, applications including special programs such as TEPSLF and many others.
Qualifying Payments for PSLF: Key Criteria
Not all loan payments are made equal in terms of their qualification for PSLF. Below are aspects that make a payment qualify for forgiveness:
- A payment that is on time and 100% paid: Late or partial repayments are not acceptable even if they were made under one of the approved repayment plans.
- Income-Driven Repayment (IDR) Plans: These are typically IDR plans like IBR (Income-Based Repayment) or PAYE (Pay As You Earn). Check https://studentaid.gov/pslf/ out for further information on various types of programs.
- Made after October 1, 2007: Since it is a recent project, any payment prior to this day would not be considered.
Pro Tip: In case you aren’t confident about which plan you’re repaying under or when you started paying back, it is wise to submit an annual PSLF form to MOHELA now. This allows you to monitor your progress and avoid missing out on changes in regulations.
Loan Types Under MyFedLoan PSLF
Not all student loans were created equal and so does the same apply to loan eligibility under the pslf program. Here’s what you should know:
- Only federal Direct Loans qualify: This covers Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans—Graduate/professional students and Direct Consolidation Loans as long as they only include Direct Loans
- FFEL and private loans don’t qualify: This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate or professional students and Direct Consolidation Loans (as long as they consolidate only Direct Loans)
Part-time job or freelancing? Be not troubled! Usually, full-time employment is required. However, there are some instances where putting together part-time work from eligible employers can help you eventually qualify for PSLF. More about these scenarios can be found on the Federal Student Aid website.
Application Process for MyFedLoan PSLF
Although MyFedLoan is no longer the direct servicer, applying for PSLF remains quite simple (now handled by MOHELA). Here is a step-by-step guide on that:
| 1. Compile your papers: Take into account that you will require basic information about the loan (such as Federal Student Aid ID number) and evidence of your employment, which includes an Employment Certification Form filled and signed by your employer. 2. Open MOHELA’s website This means that if you don’t have one already on their website (https://mohela.com/) you’ll need to create an account with them because they are now the servicers. 3. Find the PSLF forms: Under MOHELA’s website, these forms are usually located at “Resources” or “Forms.” 4. Complete the PSLF form: The form is quite simple and shouldn’t take much time to complete. It is composed of sections for personal details, loan particulars, and employment history. 5. Get your employer to fill out their segment: The process cannot proceed without the Employment Certification Form. Tell your boss to go through it carefully according to its instructions then send it back to you either digitally or via mail (as per MOHELA). 5. Take completed form to MOHELA: You can submit it electronically using your MOHELA account or follow directions on the form and send by mail. |
Pro Tip: Don’t wait until you’ve made 120 payments to submit a PSLF form. It’s a good idea to submit one annually (now to MOHELA) to track your progress and identify any potential issues early on.
MyFedLoan to MOHELA Transition
For years now, MyFedLoan was the primary servicer of PSLF loans. They did everything from processing payments to tracking qualifying employment.
In July 2022, MOHELA, became responsible for serving as propagator to this program by the Department of Education thus taking over from MyFedLoan Forgiveness (PSLF) loans.
This might seem like an obstacle but there is no need to worry! Your path towards PSLF has not been reset. All your PSLF information came over to MOHELA when they took over from MyFedLoan. Therefore MOHELA is where you should create an account so that you may continue monitoring your progress and submitting PSLF forms.
Here is a table summarising the changes:
| Feature | Before July 2022 | After July 2022 |
|---|---|---|
| PSLF loan servicer | MyFedLoan | MOHELA |
| Account management | MyFedLoan website | MOHELA website |
| PSLF form submission | MyFedLoan website | MOHELA website |
| PSLF progress tracking | MyFedLoan website | MOHELA website |
We acknowledge that navigating through loan servicers can be confusing. However, take comfort in knowing that the principal function of PSLF – canceling loans for dutiful civil servants – still holds.
Temporary Expanded PSLF
For the standard MyFedLoan PSLF program there are strict requirements. However, there also exists another alternative known as Temporary Expanded PSLF (TEPSLF) which might help some borrowers who do not qualify under the ordinary program. Here are a few things you should know about this:
- More types of repayment plans are eligible for TEPSLF: While usually limited to participation in an income-driven repayment plan that covers direct-subsidized loans only, TEPLSF may forgive also payments made through the standard repayment plans such as 10-year Standard Repayment Plan.
- TEPSLF has a deadline: The last date for submitting applications for TEPLSF was October 31st , 2022 but those who had sent their papers before then will still be considered.
Is TEPSLF right for you? In case there are any payments that have been made towards a specified plan of reimbursement while working for an employer who qualifies, then it is possible to reach the Department of Education and verify whether one qualifies for TEPLSF.
The Future of MyFedLoan Forgiveness
The landscape of MyFedLoan forgiveness is always changing. Below is a sneak peak into what may come.
- Awareness Increase: If more people get to know PSLF as well as TEPSLF, the schemes could witness a surge in uptake. This may lead to changes in processing or eligibility requirements.
- Simpler application procedure: MyFedLoan PSLF’s process of applying was tedious. There will probably be efforts geared towards streamlining it and enhancing communication between borrowers and the application body.
- Expansion of qualified employers PSLF might expand its definition of qualifying employers to include a broader range of public service positions.
Remember, these are just predictions. Stay updated through the Department of Education’s website (https://studentaid.gov/pslf/) so that you can surf any future transformations.
Conclusion
While MyFedLoan PSLF is no longer the direct servicer, this program remains a valuable resource for public service workers with federal Direct Loans.
To take advantage of this program and have your student loan debt cleared away forever by meeting certain criteria such as; understanding eligibility requirements, application process and debunk common myths.
Remember that now MOHELA is your go-to servicer for all things about PSLF.
Therefore, keep making your qualifying payments, submitting your PSLF forms regularly, and providing positive service to society itself. In essence, public service requires support; hence,through PSLF you gain financial freedom from loans.
