Student loan forgiveness has become a hot topic in recent years as student loan debt continues to rise. In response to this growing crisis, the government has implemented several student loan forgiveness programs to help borrowers manage their debt. One of the newest programs to be introduced is the Expanded Public Service Loan Forgiveness (PSLF) program, which offers more borrowers the opportunity to have their student loans forgiven. In this guide, we’ll explore who qualifies for the new student loan forgiveness program and how to apply.
Overview of the Expanded PSLF Program
The Expanded PSLF program was introduced to expand the eligibility criteria for public service loan forgiveness. Under the new program, borrowers who work in qualifying public service jobs and make 120 qualifying monthly payments on their student loans can have the remaining balance of their loans forgiven. This program is designed to help borrowers who may not have qualified for the original PSLF program due to restrictive eligibility requirements.
Who Qualifies for the Expanded PSLF Program?
To qualify for the Expanded PSLF program, borrowers must meet the following criteria:
- Employment in a Qualifying Public Service Job: Borrowers must work full-time for a qualifying public service organization, such as a government agency, non-profit organization, or certain types of non-profit organizations.
- Repayment Plan: Borrowers must be enrolled in an income-driven repayment plan or the 10-year Standard Repayment Plan. Only payments made on these plans will qualify for loan forgiveness.
- Qualifying Payments: Borrowers must make 120 qualifying monthly payments on their student loans. Qualifying payments are those made in full and on time while working full-time for a qualifying public service organization.
- Loan Types: Only loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for forgiveness under the Expanded PSLF program. However, borrowers with loans from other federal student loan programs may be able to consolidate them into a Direct Consolidation Loan to qualify.
How to Apply for the Expanded PSLF Program
To apply for the Expanded PSLF program, borrowers must complete and submit the PSLF application form, along with any required documentation, to the U.S. Department of Education. The application form requires borrowers to certify that they meet all eligibility criteria for the program, including employment in a qualifying public service job and completion of 120 qualifying monthly payments.
Other Student Loan Forgiveness Programs
In addition to the Expanded PSLF program, there are other student loan forgiveness programs available to borrowers. These include:
- Teacher Loan Forgiveness: For teachers who work in low-income schools or educational service agencies.
- Income-Driven Repayment Plan Forgiveness: For borrowers who make payments on an income-driven repayment plan for a certain period of time.
- Closed School Discharge: For borrowers whose school closed while they were enrolled or shortly after they withdrew.
- Total and Permanent Disability Discharge: For borrowers who are unable to work due to a total and permanent disability.
Conclusion
The Expanded PSLF program offers a lifeline to borrowers struggling with student loan debt by expanding eligibility for loan forgiveness. By working in a qualifying public service job and making 120 qualifying monthly payments, borrowers can have the remaining balance of their student loans forgiven. If you believe you qualify for the Expanded PSLF program, it’s important to carefully review the eligibility criteria and application process to ensure you receive the maximum benefit.
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