Chart displaying example of Lump-Sum payments Chart title: Public Service Loan Forgiveness (PSLF) Update: Lump Sum Payments (left side of chart) Previous Processing: • Your monthly payment is $100 and your due date is the first day of the month. • On Nov. 1, 2020, you pay $1,200. • You are set to recertify for your income-driven repayment (IDR) plan on May 23, 2021. • The $1,200 payment you made on Nov. 1 counts as one qualifying payment toward PSLF loan forgiveness. (right side of chart) Current Processing: • Your monthly payment is $100 and your due date is the first day of the month. • On Nov. 1, 2020, you pay $1,200. • You are set to recertify for your IDR plan on May 23, 2021. • The $1,200 payment you made on Nov. 1 counts as seven eligible PSLF payments*.

See What’s New with the Public Service Loan Forgiveness (PSLF) Program – Federal Student Aid

Good information! The U.S. Department of Education (ED) is making modifications to the Public Service Loan Forgiveness (PSLF) Program. Here’s what you must know.

Lump-Sum Payments and Prepayments Now Qualify

Now, you can also make future funds (or prepayments) to your qualifying federal student loans, and they’ll all be counted towards your PSLF qualifying fee depend if all different program standards are met. Prepayments will depend for as much as 12 months or the subsequent time you’re because of recertify to your income-driven reimbursement (IDR) plan, whichever is sooner. Here’s an instance:

Chart displaying example of Lump-Sum payments Chart title: Public Service Loan Forgiveness (PSLF) Update: Lump Sum Payments (left side of chart) Previous Processing: • Your monthly payment is $100 and your due date is the first day of the month. • On Nov. 1, 2020, you pay $1,200. • You are set to recertify for your income-driven repayment (IDR) plan on May 23, 2021. • The $1,200 payment you made on Nov. 1 counts as one qualifying payment toward PSLF loan forgiveness. (right side of chart) Current Processing: • Your monthly payment is $100 and your due date is the first day of the month. • On Nov. 1, 2020, you pay $1,200. • You are set to recertify for your IDR plan on May 23, 2021. • The $1,200 payment you made on Nov. 1 counts as seven eligible PSLF payments*.

Use the PSLF Help Tool immediately to trace your progress!

And, talking of the PSLF Help Tool…

The PSLF Help Tool Is Getting an Upgrade

In November 2020, FSA will launch a redesigned PSLF Help Tool shall be easier to navigate and can allow you to extra simply decide your eligibility for this system. After the device is up to date in mid-November, you’ll log in and be directed to the employer database we added this summer season, which at present accommodates greater than 1.5 million employers. And going ahead, we’ll retailer your employment data proper within the device, so to simply preserve observe of what data you’ve already submitted to FSA. The saved employer data additionally will assist make the method of recertifying your employment a breeze. Remember, to remain on observe for loan forgiveness, it’s best to recertify your employment every year and each time you turn jobs.

Image of the employer history page of the PSLF Help Tool that asking borrower,

Beginning in mid-November 2020, the PSLF Help Tool will retailer your employment data while you use the device so you may rapidly test your eligibility and generate types.

Once ED makes the November enhancements to the PSLF Help Tool, you’ll solely have the ability to transfer ahead within the assist device in case you have a qualifying employer. This will allow you to keep away from submitting a PSLF utility with out qualifying employment, a requirement for this system. If you assume your employer needs to be deemed qualifying, you need to use the PSLF Help Tool to ask ED to assessment the standing of your employer, and you’ll even add supporting documentation to think about. We’ll replace the employer database after our assessment to be sure to have the most-up-to-date details about qualifying employers.

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We’ve additionally added a “My Loan Eligibility” characteristic to the PSLF Help Tool. This characteristic will provide you with a personalized breakdown of your loans, a abstract of the steps you’ve taken up to now towards loan forgiveness, and different customized data, such because the variety of qualifying PSLF funds you’ve made. If you must take further actions—like change to a qualifying reimbursement plan for a number of loans, consolidate non-qualifying loans right into a Direct Loan, or certify your employment—the “My Loan Eligibility” characteristic will information you.

Image of the

When the PSLF Help Tool is up to date in mid-November 2020, you’ll have the ability to see what number of of your loans qualify for the PSLF program, what number of qualifying funds you will have made, and what actions you must take to make non-qualifying loans eligible.

Based in your suggestions, we all know it’s vital that we make navigating the PSLF Program easier. That’s why in mid-November, we’re introducing a single kind to certify and apply for PSLF and Temporary Expanded PSLF (TEPSLF)!

Image of the PSLF & TEPSLF Certification and Application (PSLF form)

The new PSLF and TEPSLF Certification & Application (PSLF kind) is the one kind you’ll must undergo certify your employment or apply for PSLF or TEPSLF.

This single kind will launch with the up to date PSLF Help Tool in mid-November. With this way, there are not completely different types and processes for employment certification, PSLF forgiveness, and TEPSLF forgiveness. Instead, it doesn’t matter what you’re trying to do with the PSLF program, you’ll have the ability to submit only one kind. By submitting the only kind, we’ll mechanically consider your employment certification AND eligibility for loan forgiveness beneath PSLF and TEPSLF. We hope this may scale back confusion and frustration, particularly for debtors in search of forgiveness beneath TEPSLF, who will not need to be denied for PSLF then e-mail the PSLF servicer for separate consideration.

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Don’t fear; we’ll nonetheless settle for the Employment Certification Form (also known as an ECF), the PSLF utility, and emailed requests for consideration for the TEPSLF alternative after the only kind goes stay; we all know it could take a while for the brand new kind to be distributed and adopted by all of the organizations that assist debtors—together with employers—navigate PSLF.

What’s to Come

To sum issues up: prepayments and lump-sum funds are actually being counted as eligible PSLF funds. And the brand new PSLF Help Tool and single PSLF kind are coming in mid-November 2020. Keep a watch on our Announcements web page, StudentAid.gov/bulletins, so that you’ll know when these enhancements launch on our web site. At that point, you’ll additionally see modifications all through our web site to replicate the truth that you’ll solely must submit one kind going ahead.

As a normal reminder, funds have been suspended for almost all of Department of Education-held federal student loans due to the COVID-19 emergency. Your suspended funds depend towards PSLF as for those who made on-time funds (so long as have qualifying loans and employment), however these flexibilities are scheduled to finish after Dec. 31, 2020. If COVID-19 has modified your monetary scenario, you may file an utility for an income-driven reimbursement plan to doubtlessly obtain a brand new, decrease fee quantity when funds resume. Log in and comply with the steps beneath:

Image describing How to apply to lower your monthly payments on an income-driven repayment (IDR) plan:.   1.	Log in at StudentAid.gov/app/ibrInstructions.action. 2.	Select “Update Income Info” and complete application.  3.	After you appl your federal loan servicer will notify you regarding your eligibility and, if you qualify, the new payment amount.  4.	Your student loan payments will resume at the new amount when they administrative forbearance ends.   Note: To provide relief during the COVID-19 emergency, federal student loans were automatically placed in an administrative forbearance, temporarily allowing monthly loan payments to stop. Additionally, interest was temporarily set at 0% on federal student loans. Find more info and updates about the administrative forbearance period at StudetnAid.gov/coronavirus

Use these steps to replace your earnings for an income-driven reimbursement plan.

We’re right here that can assist you efficiently handle your federal student loans. Follow us on Twitter at @FAFSA, on Facebook, and now, on Instagram @federalstudentaid!

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