How many payments do you have to make to qualify for loan forgiveness?

The PSLF
PSLF
What is the Public Service Loan Forgiveness Program? The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full time for federal, state, Tribal, or local government; the military; or a qualifying non-profit.
https://studentaid.gov › debt-relief-announce...
 Program 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.


Can I get loan forgiveness without 120 payments?

You must make 10 years' worth of payments, for a total of 120 payments, while working for the government or a nonprofit before qualifying for tax-free forgiveness. You can use the PSLF Help Tool on the federal student aid website to find out your eligibility based on the types of loans you have and your employer.

What are the requirements to get student loan forgiveness?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full time for federal, state, Tribal, or local government; the military; or a qualifying non-profit.


How many payments do you have to make to qualify for PSLF?

The PSLF Program allows eligible borrowers to qualify for forgiveness of the remaining balance of their William D. Ford Federal Direct Loan (Direct Loan) Program loans after they have served full time at a public service organization for at least 10 years, while making 120 qualifying payments.

What is considered a qualifying payment?

An eligible payment becomes a qualifying payment when you certify your employment and all or part of your employment period is approved. Eligible payment periods that correspond to approved employment periods are also tracked as qualifying. These payments count toward the 120 required for loan forgiveness.


PSLF FAQ: How do I know how many qualifying payments I have made?



How many years is 120 monthly payments?

Standard repayment allows you to pay your loan(s) over 10 years in 120 equal monthly installments. Because you begin paying down the principal balance immediately, standard repayment may cost you less over the life of the loan compared to some other plans.

How does the student loan forgiveness work?

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.

Why do so many people get denied PSLF?

The most common denial reasons were not enough qualifying payments and missing information on the application. But since then, we've seen an increase in the number of borrowers who have had their loans forgiven.


Is it hard to get approved for PSLF?

To qualify for PSLF, borrowers must make 120 monthly, on-time payments while working full time in public service for a qualifying employer. You also must: Ensure you have only federal direct loans. Some borrowers will need to consolidate into a direct loan.

Does the 10 year standard repayment plan qualify for PSLF?

Even though the 10-year Standard Repayment Plan is also a qualifying repayment plan for PSLF, you cannot receive PSLF unless you enter an income-driven repayment plan.

How do I know if my student loans are forgiven?

When your request for relief is approved, you'll receive an email saying so from the department. You'll then hear from your loan servicer when the forgiveness has been applied to your account. Make sure your servicer, as well as the Education Department, has the most recent contact information for you.


Is student loan forgiveness automatic?

Who qualifies for automatic student loan forgiveness. The Education Department already has the necessary information to forgive the debt of approximately 8 million federal student loan borrowers. The core requirement to qualify for forgiveness is adjusted gross income, or AGI, for either 2020 or 2021.

What happens if you don't qualify for student loan forgiveness?

If you don't qualify for student loan forgiveness because you have private student loans, refinancing to a lower interest rate or a shorter repayment period may be your best bet. A lower interest rate can reduce your monthly payment, as well as how much you pay over the life of the loan.

Can you get student loan forgiveness if you havent made payments?

If some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity.


Do months in forbearance count toward forgiveness?

Effects on Public Service Loan Forgiveness (PSLF) Applicants

If you have 12 or more months of consecutive forbearance or 36 or more months of cumulative forbearance, you will receive PSLF credit for those periods of time if you certify qualifying employment. These changes will be applied automatically.

Are federal loans automatically forgiven after 20 years?

Yes, federal student loans may be forgiven after 20 years under certain circumstances. But only certain types of loans are eligible for forgiveness, and you must be enrolled in one of a few different types of repayment plans. You'll also need to stay out of default on your loans.

How far back does the PSLF forgive?

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan, while working full-time for a qualifying employer.


How long does it take for loan forgiveness to be approved?

This process can take at least 90 days, but it could take longer.

What is the downside to PSLF?

Another con to PSLF is the fact that you might be able to make a lot more money in the private sector. Even on an income-driven repayment, you're still accruing interest. You could even end up owing more after 10 years.

Does PSLF hurt your credit?

Generally, when a student loan is forgiven, it shouldn't impact your credit in a negative way. As long as your loans were in good standing at the time they were discharged and your accounts are being reported properly to the credit reporting bureaus, you won't see a huge difference in your score.


What happens after you make 120 payments?

Will I automatically receive Public Service Loan Forgiveness (PSLF) after I've made 120 qualifying monthly payments? No, after you make your 120th qualifying monthly payment, you'll need to submit the PSLF application to receive loan forgiveness.

What happens after 10 years of paying student loans?

If you're making payments under an income-driven repayment plan and also working toward loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, you may qualify for forgiveness of any remaining loan balance after you've made 10 years of qualifying payments, instead of 20 or 25 years.

When did student loan forgiveness start 2022?

Mid-November 2022

The date by which borrowers should apply for forgiveness if they want it to take effect by the start of 2023, when payments are set to resume after a near-34-month pause. The Department of Education has said it will take an estimated four to six weeks to process applications.


Can all my student loans be forgiven?

The answer: Yes! However, there are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment. Loan forgiveness means you don't have to pay back some or all of your loan.