How to Complete the PSLF Form So You Qualify for Forgiveness

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You’ve worked hard as a public servant since you finished school.

You’ve dutifully paid your student loans each month with the hope that the government would take care of the remainder.

And finally, after 10 long years, you’re ready to apply for loan forgiveness.

Here’s how to complete the Public Service Loan Forgiveness form — and tips to make sure you qualify.

What is the Public Service Loan Forgiveness Program?

The Public Service Loan Forgiveness (PSLF) Program launched in 2007. Its promise: If you pay your loans each month while working at a government or nonprofit agency, the remainder will be forgiven after 10 years.

Unfortunately, the execution has been far from smooth. In July, the Consumer Financial Protection Bureau (CFPB) reported that many loan servicers have been mishandling PSLF for their borrowers. Others have been critical of the cost of PSLF, and there’s been speculation the PSLF Program might be discontinued in 2018.

Regardless of future changes to the program, people already pursuing PSLF should remain eligible — and September 2017 was the first time any borrowers were eligible to apply for PSLF.

How to complete the Public Service Loan Forgiveness form

If you’re one of those borrowers, then it’s time to apply for PSLF.

The first step is completing this form. You’ll need to fill out the Public Service Loan Forgiveness application for each employer you had while making your 120 qualifying payments.

Unless you indicate otherwise, the Department of Education will put your loan in forbearance while it processes your application. During this period, you won’t have to make payments. Your loan will accrue interest, however, which you’ll have to pay if your application is denied.

After you complete the PSLF application, you can submit it via mail — or upload it directly to FedLoan’s site if FedLoan is your servicer. Addresses and instructions are on Page 4 of the application, where you’ll also find numbers to call for further assistance.

Once the Department of Education has received all your documentation, it will notify you. According to its PSLF FAQ page, processing times can vary based on factors such as:

  • Whether you submitted Employment Certification forms over the years (if you did, it said your application “will likely be processed more quickly”)
  • The number of employers you had
  • Gaps in your employment or payment history

If your application is approved, the Department of Education will forgive all outstanding interest and principal on your eligible Direct Loans. If you made more than 120 qualifying payments, the extra amount will be refunded to you.

And you won’t have to pay taxes on the amount that’s forgiven, unlike some other forgiveness programs.

If, however, your application is denied, the Department of Education will notify you with the reason.

At that point, you’ll have to start paying your loans again. You’ll be responsible for any interest accrued during forbearance, and, as the Department of Education warned, that interest “may be capitalized.” That means the interest could be added to your principal, forcing you to make payments on a higher amount than you started with.

If you believe the Department of Education is mistaken, you can submit additional information that supports your case, and FedLoan Servicing will re-evaluate its decision.

Make sure you qualify for Public Service Loan Forgiveness

It’s important that you don’t apply for PSLF until you’re sure you qualify.

Putting your loans into forbearance could be an expensive mistake if your Public Service Loan Forgiveness application is denied. During the processing period, you’d also miss out on many months of making qualifying loan payments.

So, before you fill out the PSLF form, make sure you can check each of the four boxes below.

1. You have Direct Loans

Although there are many types of federal student loans, only Direct Loans are eligible for PSLF.

To check which types of loans you have, you can sign up for our student loan dashboard. If it says “Direct” below your loan, then it’s eligible for PSLF.

If you have several types of federal loans, you can consolidate them into a Direct Consolidation Loan so they’ll qualify — but your prior loan payments won’t count. In other words, the clock on your 120 payments will start over. So, think carefully before you do it.

Are your loans Direct Loans? If yes, keep going. If no, learn more about Direct Loan Consolidation.

2. You’re on an income-driven repayment plan

When you graduate from school, you’re automatically put on a standard 10-year repayment plan. But that wouldn’t work for PSLF; at the end of 10 years, there’d be nothing left to forgive.

So, you must be enrolled in an income-driven repayment (IDR) plan that sets your payments to a percentage of your income. If your payments drop as low as $0, that’s fine — but you must be on one of these plans.

Are you enrolled in an IDR plan? If yes, keep going. If no, learn more about income-driven repayment plans.

3. You work full time at a qualifying employer

Your job is what qualifies you for PSLF. You must work your employer’s definition of “full time,” or at least 30 hours per week, for a nonprofit or government agency.

To track your employers, you should send an Employment Certification form each time you switch jobs. And to prove your employment, the Department of Education suggested retaining W2s and pay stubs.

It’s important to note you must be working for a qualifying employer at the time of your application and at the time of forgiveness, according to the Department of Education. So, don’t join the private sector until your loans have been forgiven.

Did you work full time at a qualifying employer at the time of your 120 payments, and are you still working at one now? If yes, keep going. If no, learn more about qualifying public service careers.

4. You’ve made 120 qualifying payments

Lastly, you must’ve made 120 qualifying monthly payments. They must’ve been made after Oct. 1, 2007, in full and within 15 days of the due date and while you were on an IDR plan and working for an eligible employer.

The payments don’t have to be consecutive, though. If you, for example, were employed in the private sector between nonprofit jobs, you can count the payments you made on either end.

If you’re not sure how many qualifying payments you’ve made, you can log on to the FedLoan Servicing site to check. If your loans haven’t been moved over yet, you can submit the Employment Certification form — after which the DOE will send a letter revealing how many payments you have left.

Did you make 120 qualifying payments? And did you answer “yes” to all the questions above? Then you’re ready to apply for PSLF!

Take your time when you complete the Public Service Loan Forgiveness form, keep copies of everything, and make sure you remain at your qualifying job until your loans have been forgiven.

And whatever the outcome of your PSLF application, please contact us — we’d love to hear about your experience.

Interested in refinancing student loans?

Here are the top 6 lenders of 2020!
LenderVariable APREligible Degrees 
1.89% – 6.66%1Undergrad
& Graduate

Visit Splash

1.89% – 5.90%2Undergrad
& Graduate

Visit Laurel Road

2.25% – 6.09%3Undergrad
& Graduate

Visit SoFi

1.99% – 5.64%4Undergrad
& Graduate

Visit Earnest

1.98% – 8.55%5Undergrad
& Graduate

Visit Lendkey

2.39% – 6.01%Undergrad
& Graduate

Visit Elfi

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount.

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of October 1, 2020.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of September 9, 2020. Information and rates are subject to change without notice.
 


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 2.99% APR to 6.09% APR (with AutoPay). Variable rates from 2.25% APR to 6.09% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.25% APR assumes current 1 month LIBOR rate of 0.18% plus 2.32% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 

4 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 2.98% APR (with Auto Pay) to 5.79% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 5.64% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of July 31, 2020, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 7/31/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


5 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 10/15/2020 student loan refinancing rates range from 1.98% APR to 8.55% Variable APR with AutoPay and 2.99% APR to 8.77% Fixed APR with AutoPay.

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.