What You Need to Know About Upcoming PSLF Deadlines
The student loan repayment landscape shifted significantly during the pandemic. While many of the changes surrounding repayment requirements were helpful to borrowers, these shifting sands can leave some borrowers confused about what their next steps are for repaying their student loans.
The Association of American Medical Colleges (AAMC) found that nearly three-quarters of physicians graduate with education-related debt—the median debt being about $200,000. This is why student loan forgiveness can be so appealing to physicians.
If you’re interested in qualifying for Public Service Loan Forgiveness (PSLF), keep reading to learn about an upcoming deadline you can’t afford to miss.
How Do I Qualify for PSLF?
PSLF forgives the remaining balance on your Direct Loans, but only after you make 120 qualifying monthly payments under a qualifying repayment plan. You also have to work full-time for a qualifying employer to qualify.
A qualifying employer includes a U.S. federal, state, local, or tribal government or not-for-profit organization. Military service also qualifies you.
Why October 31, 2022 is So Important
Suspended student loan payments during the pandemic gave many consumers a chance to stay afloat financially. Because you have to make 120 consecutive payments to your Direct Loans, there was widespread concern that not making payments during this pause would harm those hoping to qualify for PSLF.
Fortunately, this isn’t the case as long as you have a Direct Loan and worked full-time for a qualifying employer during the payment suspension period. You can still receive credit toward PSLF for payments that normally wouldn’t have qualified. Essentially, not making payments during that time won’t affect you like it normally would if you stopped making payments.
In addition, other past payments that may not have counted before will contribute to that 120 payment requirement even if the payment wasn’t made on time, for the full amount, or as a part of a qualifying repayment plan. These new guidelines also apply to Temporary Expanded Public Service Loan Forgiveness (TEPSLF).
You only have until Oct. 31, 2022 to take advantage of this unique opportunity that is not usually available to federal student loan borrowers.
Next Steps
To find out where you stand and to confirm you’re on track to qualify for PSLF, you need to submit a Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF Form). This should actually be done annually or whenever you change employers. By filling out this application, you can find out if you are in fact making qualifying PSLF payments.
You also currently have the option of consolidating your loans into a Direct Consolidation Loan. Normally, only new payments to a Direct Consolidation loan count towards the required 120 payments, but right now if you consolidate your debt before Oct. 31, 2022, you may be able to receive qualifying credit for payments made on those loans through the limited PSLF waiver.
If you need help determining what your next best move is in regards to repaying your student loans, we’re happy to walk you through your options and can help you come up with a repayment plan that works for your personal and financial goals!