Qualifying for PSLF
If you are working toward PSLF, you should complete and submit the Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF form) annually or when you change employers. If you have made 120 qualifying payments, you should fill out and submit this same PSLF form.
How and when to apply for loan forgiveness
Requirements for Public Service Loan Forgiveness
You must be employed full-time, at least 30 hours per week. Several qualifying part-time jobs may also count if it adds up to at least 30 hours per week.
Your responsibility to pay student loans doesn't go away after 7 years. But if it's been more than 7.5 years since you made a payment on your student loan debt, the debt and the missed payments can be removed from your credit report. And if that happens, your credit score may go up, which is a good thing.
If you have a high debt-to-income ratio
If you're making $50,000 a year and have $100,000 in student loans, you should consider looking into PSLF. You could significantly decrease your monthly student loan payments, freeing up more money for retirement, a down payment on a home and other savings goals.
Public Service Loan Forgiveness
PSLF forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Depending on the payment plan selected, your forgiveness with PSLF would be up to $24,150.
Your payments do not have to be in consecutive order, but they must be made on an income-driven repayment plan. In order to qualify, you must submit a Public Service Loan Forgiveness Employment Certification Form each year. Then at the end of 10 years, submit the formal Public Service Loan Forgiveness application.
In order to be forgiven, at least 60% of the loan amount needs to be used for payroll purposes. If less than 60% of your loan is used for payroll, you can still be eligible for forgiveness, with the amount you spend correlating directly to forgiveness.
There is no deadline to apply for PPP loan forgiveness. Lenders will continue accepting PPP forgiveness applications so long as borrowers have PPP loans. ... PPP loans have a covered period of 8 to 24 weeks after the funds hit your bank account. Once that covered period ends, your loan payments are deferred for 10 months.
The loan doesn't have to be repaid to the extent it's used to cover the first 24 weeks (eight weeks for those who received their loans before June 5, 2020) of the business's payroll costs, rent, utilities and mortgage interest. However, at least 60% of the forgiven amount must be used for payroll.
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