Student Loan Forgiveness, the Requirements and Why the Applications in Majority of Cases Fail

The program allows some non-profit workers and government employees to have their loans cancelled after the payments of 10 years. 25% of people would be in theory eligible, since they work in public service. In 2017 the Consumer Financial Protection Bureau reported that the people are failing to match the requirements, since they are not properly informed of what they need to do to qualify. The truth is less than 100 people of 30.000 who applied for student loan forgiveness got actually approved. For instance Jason Edwards learnt he didint qualify for the programm, because of his loan repayment plan. There are in reality 14 loan repayment programms, but you have to be enrolled in this 4 to be eligible for student loan forgiveness:


1. Pay as you earn repayment
2. Income contingent repayment
3. Revised pay-as-you-earn repayment
4. Income based repayment


When the people switch from not eligible repayment programs to eligible ones, their student debt forgiveness clock resets again and they should be enrolled in program for additional 10 years in order to qualify for forgiveness plan.
Another exmaple is Jane Even, a librarian, who was in 2016 repaying eighth year of her loan. She didnt qualify for student debt forgiveness she learnt, none of her payments counted because she had a Federal family education loan, which is not among only 4 repayments to qualify for forgiveness. Other loans which dont qualify for PSLF are federal Perkins Loan, Private loan or any non education loan in fact only direct loans are eligible. She consolidated his loan to direct loan immediately, but the loan debt clock was restarted to 0 again.


These are the public service loan forgiveness requirements. If you don’t meet one or more of them, you can make changes so that you do.


Loans must be federal direct loans.
Your employer must be a 501(c)(3) not-for-profit organization , a government organization at any level, or some other type of not-for-profit organization that provides public service.
You need to have made 120 qualifying, on-time payments in an income-driven repayment plan or the standard repayment plan.

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