Under the Teacher Loan Forgiveness Program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your ...
As a teacher, it's easy to qualify for PSLF since your job is in public service no matter where you work and live. You don't have to work in a low income or public school, for example. According to the U.S. Department of Education, most full-time teachers should meet the employment requirements for PSLF.
Pursuing Teacher Loan Forgiveness and PSLF is possible
Unfortunately, you can't double up on both forgiveness programs at the same time. ... After you've made five years of payments toward the Teacher Loan Forgiveness program, you'll need to start over and make 120 new qualifying payments for PSLF.
Employment with the following types of organizations qualifies for PSLF: Government organizations at any level (U.S. federal, state, local, or tribal) Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
But the reality of PSLF isn't quite so rosy. While achieving loan forgiveness is certainly possible, it's proving to be more difficult than anyone realized. According to the Department of Education, only 96 people have received loan forgiveness since the first round of applicants became eligible in 2017.
As long as you're still working full-time for an eligible employer, those months of nonpayments will count toward the 120 payments needed to qualify PSLF. In other words, if you have not made payments since March 2020 and won't make another until October 2021, you are still 19 months closer to forgiveness.
The Public Service Loan Forgiveness program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit.
How long does it take to process the application? A. The loan holder is allowed 60 days from the day it receives your completed application to process it and forward it to the guarantor. The guarantor then has an additional 45 days to either approve or deny the request.
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.
Student loan forgiveness is possible after 20 years if you're only repaying undergraduate loans, or after 25 years for any of the loans you're repaying from graduate school or professional study. Student loan forgiveness is possible after 25 years of repayment.
Jobs with federal, state, local or tribal government organizations, public child or family service agencies, 501(c)(3) non-profit organizations, or tribal colleges or universities should be considered “public service jobs.” Government employers include the military and public schools and colleges.
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.
There are two other instances in which your loans may be forgiven without making a payment:
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