A New “Recovery” Program Can Help You Get Student Loan Forgiveness Soon. Here’s Who’s Eligible

Teachers, nurses and other eligible civil servants are registered Public Service Loan Forgiveness Program in their field, they can see their student loan balances eliminated after 10 years and 120 eligible monthly loan payments. due to SAVE payment breakhowever, some PSLF borrowers who should have received forgiveness last year are still waiting.

To help, PSLF Redemption program offers eligible borrowers the opportunity to “buy back” non-forgiveness months while their loans are in forbearance or forbearance.

The buyback option can help some borrowers in the PSLF program get out of debt faster, but it’s not a shortcut to speeding up your progress toward PSLF. Elaine Rubindirector of corporate communications Edvisors.com. You must reach ten years of service and meet other conditions to be eligible. If you’ve only been in your teaching position for five years, for example, you can’t use this program to pay off your remaining five years of debt relief now.

Find out if you qualify for the buyback program and how to apply here.

More details: 6 Actions Student Loan Borrowers Should Take Before Transitioning To The White House

What is the PSLF buyback program?

The PSLF Buyback Program allows you to buy back certain missed payment months to count as eligible payments under PSLF, which will speed up debt discharge for a small number of eligible borrowers.

For example, if you are a teacher who has worked for 130 months, you have already passed the 10 years required to be eligible for public debt forgiveness. However, if your student loan has been deferred or in forbearance for 15 months, you may only have made 115 monthly payments. Normally, this would mean that you are not yet eligible for forgiveness under the PSLF program.

Under the government’s PSLF Buyback program, you can now make payments (either in one lump sum or in multiple payments) within 90 days to cover the 5 months it takes to meet your obligation and become debt free.

What amount will you need to redeem? It depends on how many months you have left of the 120 target and how much your monthly payment is. If you were on an income-based payment plan, your monthly payment could be as low as $0, Rubin said. But if your monthly payment is $200 and you’ve only made 117 payments, you’ll have to pay $600 to complete the buyback process.

After you submit a buyback request, the government will detail the total amount you must pay your servicer within 90 days to get your remaining balance forgiven.

Who is eligible for PSLF withdrawal?

There are several requirements to be eligible for a PSLF withdrawal:

In other words, if you have less than 10 years of service, you cannot request a buyback, and the buyback does not apply to defaulted or written-off loans.

You can check your PSLF-eligible payments at StudentAid.gov, the program’s central dashboard. You can look More information on eligibility requirements here.

How do I apply for the PSLF buyback program?

Here it is steps to apply For the PSLF buyback program:

1. If you have eligible work periods that have not been reported, submit them using PSLF Help Tool.
2. Wait for the review adjusting the number of payments Applies to PSLF loan.
3. Confirm the missing pay months you want to get back and make sure you have eligible employment for the same months (how check out these months).
4. Submit a buyback request via PSLF revision.
5. Wait to hear back from StudentAid.gov about your final payment amount.

Rubin warns that the implementation is a bit confusing. “Be patient, but make sure your information is submitted,” Rubin said.

You can check the status of your application via StudentAid.gov.

Can I apply for a PSLF refund if I am enrolled in SAVE?

Yes, you can apply for a PSLF refund if you are enrolled in an Affordable Education Savings plan. The SAVE programan income-driven repayment plan is considered an eligible type of forbearance under PSLF buyback.

Payments have been on hold for SAVE borrowers since the summer, so if you’re a PSLF borrower who got debt relief in the fall or winter, you’re a prime candidate for the buyback program.

How long will the PSLF buyback program be open?

Rubin said the PSLF buyback program is currently open and there is no hard deadline for applications.

That said, after you submit your application and find out your buyback amount, you have 90 days to make the buyback payment to your credit servicer. If you fail to pay the total amount within this period, you must start over with a new application.

With a new administration in the White House, the long-term fate of the PSLF buyback program is unclear. Rubin recommends taking the time now to determine your eligibility and submit your application while the PSLF clawback is still available.