What is a qualifying employer for student loan forgiveness?
Employment with a U.S. government entity at any level (federal, state, local, or tribal), or an organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code is a qualifying employer for PSLF regardless of the specific services that are provided.
Government organizations at any level (federal, state, local, or tribal) Not-for-profit organizations that are tax exempt under Section 501(c)(3) of the IRS code. Other not-for-profit organizations that are not tax exempt under the same IRS code and that provide certain public services.
Use the PSLF Help Tool to search for a qualifying employer, learn what actions you may need to take to become eligible for PSLF or TEPSLF, and generate a PSLF form. You will need to provide an email address for an authorized official who can certify your employment and sign your form.
If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., at least 10 years of payments. To benefit from PSLF, you need to repay your federal student loans under an IDR plan.
If your employer doesn't consider you to be Full-time, then this employment doesn't qualify for PSLF. (No matter whether you worked 40, or 60, or 80 hours a week -- your employer has to consider you Full-time for it to count.)
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan.
For purposes of PSLF, nonprofit hospitals, nonprofit 1206(l) foundations, and other nonprofit facilities and clinics that are barred by state law from directly employing physicians are considered “qualifying employers” of physician borrowers who provide services in those facilities even though physicians are not ...
If an employer status is listed as undetermined: We haven't yet determined whether the employer qualifies. If you submit a PSLF form including an employer with an undetermined status, we'll determine whether or not the employer is eligible and update the status in our database.
If you work in certain public service jobs and have made 120 payments on your Direct Loans, you may be eligible to have your loans forgiven.
B) Public service job The term “public service job” means— (i) a full-time job in emergency management, government (excluding time served as a member of Congress), military service, public safety, law enforcement, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time ...
Who will not qualify for student loan forgiveness?
You must be a direct employee of a qualifying employer for your employment to qualify. This means that employees of contracted organizations, that are not themselves a qualifying employer, won't qualify for PSLF including government contractors and for-profit organizations.
The PSLF program supports public servants—including teachers, nurses, social workers, first responders, service members, and other public servants—by forgiving the remaining student loan balance for those who make the required 120 qualifying monthly payments.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
Employment with a U.S. government entity at any level (federal, state, local, or tribal), or an organization that is tax exempt under section 501(c)(3) of the Internal Revenue Code is a qualifying employer for PSLF regardless of the specific services that are provided.
59% of denied applications were rejected due to too few qualifying payments. 26% of denied applications were due to missing information. As of November 2020, $118.5 billion was the total outstanding balance of borrowers eligible for PSLF.
Can I certify my own qualifying employment? Yes, you may certify your own employment if you are the only employee of the organization who can do so.
You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.
- Log in to your StudentAid.gov account.
- From your Dashboard, navigate to “My Aid.”
- Select “View Details” to open your My Aid page, then scroll down to PSLF/TEPSLF Payment Progress.
To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.
Jobs that don't qualify for PSLF
Here's a short list: For-profit organizations, including for-profit government contractors. Labor unions. Partisan political organizations.
How do I know if my employer is eligible for PSLF?
If you have your employer's Employer Identification Number (EIN) and your employment dates, you can use the PSLF Employer Search Tool to determine if your employer is a qualifying PSLF employer. The EIN can be found on your W-2.
If you're in a religious role and wondering how to qualify for Public Service Loan Forgiveness, here are the key boxes you need to check: Employment: Work full-time for a qualifying employer. This now includes most religious 501(c)(3) organizations like churches, synagogues, and mosques.
These reasons include that we determined that it's a for-profit organization or that it is a not-for-profit that isn't a 501(c)(3) organization and that does not provide a qualifying service. Our decision that an employer isn't eligible is based on the best information that we have at the time.
Even though electronic signature and submission won't be available in this case, you can still use the PSLF Help Tool to generate your PSLF form as a manual download. submit documentation that confirms both the FEIN/EIN of the employer and your period of employment.
Your employment can be certified by an official who has access to your employment or service records and is authorized by your employer to certify your employment or your service as an AmeriCorps or Peace Corps volunteer.
