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Are you eligible for a student loan forgiveness?Ministry of Education announces new tools to help borrowers find out

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The Biden administration has launched a new tool to help borrowers determine if they can qualify for a student loan forgiveness based on the work of a civil servant. The launch arrives just as the expansion of key loan forgiveness is about to end.

Here’s what the borrower needs to know:

Expansion of student loan forgiveness by PSLF

The Pubic Service Loan Forgiveness (PSLF) program can provide federal student loan forgiveness to borrowers who have spent more than a decade in public service operations. First established in 2007, the program has historically adhered to strict eligibility rules. Only direct federal student loans are eligible and only payments made under certain types of repayment plans are counted as student loan exemptions.

Last October, the Biden administration temporarily relaxed these rules through a limited PSLF exemption. The administration went further in April last year, allowing more past loan periods to be counted in PSLF. In summary, these changes dramatically increase the desire to count as “qualified payments” for PSLF-based student loan exemptions, including most past repayment periods and past deferrals and grace periods. It came to be. However, the changes are temporary and the limited PSLF exemption will end on October 31, 2022.

PSLF employment requirements remain almost unchanged. Eligible employment for PSLF purposes is full-time, W-2 employment, or a total of at least 30 hours per week of a national public agency or 501 (c) (3) non-profit organization.

Ministry of Education Announces PSLF Employer Search Tool

Borrowers may stumble trying to determine if an employer is eligible for a student loan exemption through PSLF. And until now, there has been no easy way for borrowers to get quick answers. Traditionally, borrowers have had to submit a formal PSLF application signed by their employer to the loan servicer in order to obtain a formal decision. Also, this process can take several months.

Earlier this month, the Ministry of Education launched the PSLF Employer Search Tool. This online database provides a “quick and easy way” to search for an employer and receive a preliminary PSLF eligibility decision before applying. The borrower only needs the employer identification number (EIN), which is usually found on the W-2 or pay slip, and the date of employment.

“Added new PSLF Employee Search. [borrowers] Searching for qualified PSLF employers without logging in to the website, “the Ministry of Education said in a newsletter. “PSLF Employer Search provides an easy-to-understand prompt and guides the user through the process of determining if an employer is eligible for PSLF. If the employer is eligible for PSLF, if not. , Or if it is not listed in the database, the user will receive a message about the next step. “

Borrowers must apply to PSLF to get a student loan permit

Importantly, PSLF Employer Search Results do not guarantee PSLF eligibility and are a tool that helps borrowers make preliminary decisions. To qualify, the borrower must submit a PSLF Employment Certificate Form (ECF) signed by the employer. The borrower can initiate this process through the department’s PSLF help tool. To qualify for PSLF under the limited PSLF exemption, you may need to take additional steps, such as integrating an FFEL or Perkins loan directly into an integrated loan.

The borrower should review the PSLF program along with the current temporary amendments before taking any drastic action on the loan.

Ministry of Education officials are encouraging borrowers to apply for PSLF and take advantage of the limited PSLF exemption before it expires in October.

“Public service loan forgiveness programs are helping more and more Americans get debt relief,” said Secretary of Education Miguel Cardona. Tweet yesterday. “Sign up today!”

Further student loan reading

Biden may extend student loan suspension until next year and is considering other remedies, including loan forgiveness

134 groups urge Biden to extend student loan forgiveness initiatives, top officials tell borrowers to apply now

The three major student loan forgiveness opportunities may soon end — here’s how to apply:

If you go to these schools, you may qualify for student loan forgiveness: this is what to do