Public Loan Forgiveness

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To clarify for this opportunity, a borrower must have done the following as outlined by Dept of Education:

-  Submitted the Public Service Loan Forgiveness: Application for Forgiveness and had that application denied because some or all of the payments were not made under a qualifying repayment plan for PSLF

-- Worked at least 10 years of full-time employment with a qualifying employer, certified by the employer, and approved by the Department

-- Made 120 qualifying monthly payments under the new requirements for the TEPSLF opportunity while working full-time for a qualifying employer or employers

Borrowers who believe they may qualify for the TEPSLF opportunity should email a request for reconsideration to TEPSLF@MyFedLoan.org.

 

From the New York Times:

"So now comes the fix-it fund. It could allow some of the people who were in a list of formerly ineligible repayment plans into the loan forgiveness program if they apply for the exception before the $350 million runs out (or after Congress allocates more money, if that ever happens). Only people who paid more than they would have under an income-driven repayment plan on their most recent monthly loan payment and the one 12 months ago (and thus were consistently overpaying, in effect) will be eligible.

 

If this sounds like it applies to you, you need to do the following things in the following order. First, you need to make 120 on-time payments in the right job, with the right loan; you can't go looking for relief yet if you've made only 90 payments, even if you already know that 30 of them, five or more years ago, were in the wrong repayment plan. Then, you need to ask FedLoan, your servicer, to begin formal forgiveness proceedings. It will then reject you for being in the wrong repayment plan for part or all of that 120-month period.

Only once that happens can you apply for the money, by sending an email to FedLoan. (The address is on the Department of Education's website.) The department has a template there that you can follow."

Michael Rose, Director for Government Relations, NACAC