Do you have student loans and are part of the public student loan forgiveness (PSLF) program? Then you’ll want to listen up!
If all stays current, Americans are expected to start repaying their student loans in May 2022. This is after a 25-month nationwide forbearance due to Covid-19.
There are important updates for anyone who is a part of the Public Student Loan Forgiveness program, also known as PSLF.
Let’s start with the basics. If you qualify for the PSLF, you work for a government or non-profit employer. This includes teachers, firefighters, nurses and other public service workers. But eligibility requirements don’t stop there.
Now, ya’ll know nothing ever comes easy or free. PSLF forgives the remaining balance on Direct Federal Loans after a borrower makes 120 qualifying monthly payments while working for a qualifying employer, and you must be working full time or at least 30 hours per week for a qualified employer.
Also, there are specific student loans, like private student loans that aren’t eligible for PSLF.
Now, on to the juicy information — the updates!
Beginning in April 2022, borrowers will be able to use an interim online submission process to request reconsideration of PSLF and TEPSLF qualifying employment or qualifying payment determinations. Meaning, if a borrower feels their account was handled incorrectly, they can submit one or more reconsiderations to see if their employer qualifies for PSLF or if any previous payments that they made could qualify for PSLF.
It is important to note that the reconsideration process is only a government review and is only intended to rectify accounts that were handled incorrectly.
Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.