October 15, 2018
Do you know if once you send in the Employer certification form for PSFL, does my student loan automatically get transferred to the Fed Loan servicing or do they inform me first by email, phone or mail that I am qualified or not and I’m sure I would have to sign off on something to approve my current service provider to transfer my loan to the Fed Loan. Is that how it works?
Has anyone had any problems with Fed Loan servicing as far as going through the PSFL program.
May 3, 2014
Unfortunately, if you want to go after PSLF, you have to work with FedLoan Servicing. There is a line on the employer certification that the borrower agrees to having their loans transferred to FedLoan servicing. It isn’t ideal, but there is no other way.
I am just learning about PSLF program. However I have had DIRECT loans with level payments for more than 10 years while working for a qualifying employer. Can I go back and get Employment Certification completed to get credit for payments in the past? Of course, my loans are not serviced by FedLoans at any time.
Second question I do not see addressed: If I return to school during my 10 years of repayment and ACCRUE MORE student debt, can I continue on my original loans and be forgiven, meanwhile properly structure new graduate school debt and begin a separate 120 qualifying payments? Or is PSLF a once-in-a-lifetime forgiveness?
May 3, 2014
Your loan servicer should not impact your PSLF eligibility… just know that when you apply you will probably be moved over to MyFedLoan for servicing. Hearing that you are on level payments makes me think that you may not have been on an eligible repayment plan (the most common eligible plans are the income-driven plans), that being said, it doesn’t hurt to send in a certification form to see where you stand.
However, if the only issue with your 10 years worth of payments is the repayment plan, I’d encourage you to look into the Temporary Expanded Public Service Loan Forgiveness Program. This program is temporary in nature, so you will want to get on it as soon as possible: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/temporary-expanded-public-service-loan-forgiveness
Moving on to your second question, if you get more debt, that debt will have its own “forgiveness clock”, meaning your old debt can still be forgiven as scheduled but the new debt won’t be eligible until you have made enough payments for the new loans to be forgiven. In other words, they are treated pretty much independently. Forgiveness on some loans now does not preclude forgiveness on other loans later.
That being said: Don’t make the mistake of consolidating your old loans with any new loans. That will reset the forgiveness clock on all of the loans.
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