How to obtain student loan forgiveness for government employees (federal, state and local employees)
In 2019, one of the best ways to gain federal student loan forgiveness benefits is to be a government employee and to use the Public Service Loan Waiver (PSLF) program. to obtain the complete cancellation of your loans in return for 10 years of work and eligible payments.
What is the government employee loan forgiveness program?
Government Employees Employees at all levels of government and all organizations are able to obtain full debt forgiveness for federal student loans through the Public Service Loan Waiver Program (PSLF). ), the official name of the Government Student Loan Forgiveness Program.
PSLF is by far the best federal student loan forgiveness program of the federal government, as it provides full 10-year loan forgiveness benefits to the public service (as a government employee) and making income-tested payments for your student loans. actually due after the expiry of the 10-year period.
To cancel the loan after 10 years, you will need to work full-time in a “government employee” job and make monthly student loan payments on time, in full and according to a plan schedule. federal student-oriented income loan repayment, but as long as you meet these simple conditions, your loans will be forgiven!
But before explaining how forgiveness works for government employees …
Let me give you some quick advice: Even though the government employee forgiveness program is very good at getting rid of your student loan debt, it will take you at least 10 years to qualify for the rebate, so certainly want to consider alternative options for short-term financial relief.
If you are really struggling with student debt, you should also consider paying a debt relief agency related to student loans. Why? Because employees of these companies process student loans all day, every day, and they are your best chance of finding a way to get your loan back.
Over the last ten years, I’ve been interviewing all kinds of deleveraging agencies, with all sorts of so-called “experts,” and I can honestly say that I found only two companies in who I trust to offer real financial services. relief for people struggling with student loans.
How does forgiveness of loans to government employees work?
This is one of the simplest forgiveness programs available, as it has only three basic eligibility rules, and these rules are quite easy to satisfy.
Basic eligibility requirements
- You must have an eligible loan (only direct federal loans will be eligible)
- You must have an eligible job (only “government employees” jobs will be eligible)
- You must make 120 monthly student loan payments on an income-based refund slip.
Once you have satisfied these three conditions, you are able to request the release and you will receive a full and complete student loan exemption, and no tax on the amount of the rebate will be charged to you by the IRS (this which happens practically with all other forms of forgiveness …).
This is a fairly sketchy overview of the program and you should definitely know more about it, but I will explain all of those in the rest of this guide. So be very careful, it will help you decide. if PSLF is right for you or if you should look elsewhere for forgiveness.
What loans are eligible for forgiveness from a government employee?
ONLY direct federal loans are eligible for the PSLF. You must therefore have one (or more) of the following types of loans to qualify for the Government Employee Allowance remittance under the Public Service Program.
- Direct federal loans subsidized
- Non-subsidized direct federal loans
- Federal Loans Direct Grad PLUS
- Federal Direct Lending to Parents PLUS
- Direct consolidation loans
All other types of loans, including private student loans and federal loans under the former Family Education Loan Program (FFEL loans) will not be considered for the PSLF; you will not be able to get rid of it.
HOWEVER, if you can convert your other loans to a direct consolidation federal loan, then this new direct consolidation loan will be eligible for PSLF, and your government work will entitle you to its payment.
Which jobs are qualified for forgiveness of government employees?
You have to work for full-time government, that is, at least 30 hours a week, in a “public service” role, but the benefit of this program is that the definition of “government work” is quite vague. different jobs will allow you to enjoy the benefits of the PSLF.
- ANY employment at ANY level of government, including employment at the federal, regional and local levels, including:
- Jobs in Emergency Management, Public Safety and Law Enforcement, or the Army
- Jobs in Public Health Services, Public Service for People with Disabilities and Seniors
- Jobs in public education, public libraries or other school-based services
- Jobs in ANOTHER where you can prove that you are technically a “government employee”
The easiest way to qualify is obviously to work directly with the government, as for the DMV, as a member of Congress or in the Local Government Capital Building. However, many jobs qualify you as “government”. Employee “, ranging from military personnel to police officers, firefighters and park wardens, the options are almost limitless.
My suggestion as to whether your job is qualified is to contact the Human Resources Manager and simply ask, “Does my job count for forgiveness of public service loans?” It is up to them to understand these benefits and to inform you if you wish or not. can use them, so put the responsibility on them!
Finally, you must also send an annual employment certification form that allows the Ministry of Education to review your position and clearly indicate whether you are eligible or not.
What payments are eligible for forgiveness from a government employee?
Remember that you must be enrolled in one of the federal income-tested federal student loan repayment plans so that your payments are taken into account in the cancellation of a government employee’s debt. You will need to use one of the following plans to repay your loans.
Eligible repayment plans
- The acquisition compensation plan (PAYE)
- The compensation plan as you earn (REPAYE)
- The income-based repayment plan (IBR)
- Reimbursement plan based on income (ICR)
Only payments that you made while you enrolled in one of these plans will count toward this 120 threshold (10 years of payments required to complete the program), and these payments must be made while you are also working in the program. skilled work we just talked about. above.
However, even though Donald Trump may be the enemy of student loan repayment payments, he did a very good thing for borrowers, who was passing a law creating a program called Temporary Expanded PSLF (TPSLF) , which allows people to benefit from PSLF’s forgiveness. if they meet ALL OTHER PSLF REQUIREMENTS, but are not enrolled in the correct repayment plan.
To find out if you can use the TPSLF program for forgiveness, see my PSLF Extended Temporary Program Guide.
Finally, four other rules determine the eligible payments. You must satisfy each of these rules so that any payment is taken into account within the limit of 120, namely:
Eligible payments must have been
- Made after October 1, 2017
- On time
These are fairly easy to meet, however, as this simply means that only one-time, full, and monthly payments made after October 1, 2007 will count towards the 120 threshold. As long as you have adhered to an IDR repayment plan and you follow this plan, your payments should count.
How to apply for a pardon for a government employee
The only quirk of this program is that you do not apply until you have met all eligibility requirements, which means that you have worked for the required 10 years in the role of Governemnt employee and have acquired the 10 years required to qualify. IDR payments during this period.
But do not forget that you have to certify your job every year throughout the process, as this will help you do nothing and when it comes time for the Ministry of Education to review your application, it will be accelerated the process as they had already completed all their annual reviews.
When you make this 120th payment, you must complete the official PSLF application, which you can download here, and submit with your employer attestation to FedLoan Servicing, which processes all PSLF requests from the Department of Education.
You can submit documents to FedLoan in three different ways, using what suits you best.
Are loan forgiveness applications for government employees currently approved?
In a LA Times report of April 3, 2019, we discovered that PSLF applications are not being approved at the desired pace, with the Ministry of Education doing everything in their power to prevent the issuance of the approval form.
In fact, of the tens of thousands of PSLF applications submitted, less than 300 have been approved!
I know at least 300 people who have visited this website and provided me with details that SHOULD have qualified for PSLF approval.
The fact that fewer than 300 people have received PSLF benefits is a scandal, particularly in light of the congressionally approved extended temporary PSLF program, which has added € 700 million for the program and should have been open the PSLF to thousands of Americans who have simply lost not adhering to the proper federal repayment plan but who otherwise should have qualified for profit.
On the positive side, congressional Democrats are communicating with the media on this issue and strongly protesting, and even prominent senators such as Tim Kaine of Virginia will soon say that the education department is not taking its responsibilities. .
Personally, I think we need to see President Trump replaced before anything changes, because he is the one who is responsible for Betsy DeVos at the head of the Department of Education, and she is the one trying to prevent the approval of all forms of federal forgiveness, PSLF and defense program to the repayment of the borrower.
Should I ask for the pardon of a government employee?
Even if the approvals are not distributed as they should, I still think it’s worth asking and applying Pardon PSLF as soon as you meet the eligibility criteria for the program.
Why? Because, ultimately, the promise made by the federal government to public service employees will be fulfilled – a Democratic president will eventually be elected and a sane person will eventually be handed over to the Ministry of Education.
Even if you do not qualify for PSLF, my advice is to change jobs and find a role that will allow you to take advantage of this benefit, because this is the most successful federal student loan forgiveness program. powerful that exists.
In fact, it is even possible to get a full rebate of the PSLF without ever paying a penny on your loans because you CAN qualify for a monthly payment of € 0 under one of the IDR repayment plans, and even these payments of € 0 still count for the threshold of 120 payments.
What other student loan relief programs should I explore?
If you are not able to qualify for the graciousness of government staff via PSLF, do not worry, as many other great retaliation, dismissal and relief programs may still be available.
My website contains over 100 guides offering tips on how to take advantage of federal and private student loan relief programs. The good news is that you are in the right place if you want to know how to get rid of your debt.
For more information on obtaining assistance for federal student loans, start with my guides on:
Federal Student Financial Assistance Programs
Alternatively, if you need help with private student loans, you should start with my guides on:
Loan relief programs for private students
Over the past decade, I have spoken to thousands of student loan borrowers and I am almost certain that you will be able to find something that will help you reduce your debt, so do not give up without spending a Shortly looking for the benefits described above because you are virtually guaranteed to find a way to save money.
If you need help choosing the programs you may be eligible for, please leave a comment at the bottom of this page, indicating whether you have federal or private loans, and giving me details about the programs you are considering. consider. what you do in life, etc.
I will answer you with my advice within 24 hours of publication!
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