Consolidate student loans public service loan forgiveness

You may be eligible to receive loan forgiveness of the remaining balance of your Direct Loans * under the Public Service Loan Forgiveness (PSLF) Program if you:

• Are employed by:
  • a federal, state, or local tribal government organization — this includes the U.S. military;
  • a nonprofit organization that is tax-exempt under Section 501(c)(3) of the Internal Revenue Code; or
  • a nonprofit organization that is not tax-exempt under Section 501(c)(3) of the Internal Revenue Code if it provides certain types of qualifying public services.
  Please note that if you are a contractor, your employment doesn’t count toward PSLF unless you are directly employed by a qualifying employer.

  Wondering if your employer meets the criteria above? Use the StudentAid.gov PSLF employer search to help determine if your employer may qualify you for PSLF.

• Work full-time according to your qualifying employer’s definition of full-time or at least 30 hours per week, whichever is greater. If you are employed in more than one qualifying part-time job at the same time, you will be considered full-time if you work a combined average of at least 30 hours per week with your employers.
• Make 120 qualifying payments or the equivalent (or receive credit for payments, such as during the COVID-19 payment pause).
• Have Direct Loans or consolidate other federal student loans into a Direct Loan. *

Learn more by using the PSLF Help Tool to see whether you might qualify and to apply for PSLF electronically, or you can download the Public Service Loan Forgiveness (PSLF) and Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF form).

Important Limited PSLF Waiver

On October 6, 2021, the U.S. Department of Education’s office of Federal Student Aid (FSA) announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF. This change will apply to student loan borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by October 31, 2022.

Learn more about how this limited PSLF waiver may impact your loans. Act soon – the waiver ends October 31, 2022. You can also contact us with questions.

You've Got Options If You Were Denied PSLF

If your application for Public Service Loan Forgiveness (PSLF) was denied, you may be able to receive loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity.

As part of this opportunity, the Department of Education reconsiders your eligibility using an expanded list of qualifying repayment plans.

Important Limited PSLF Waiver

On October 6, 2021, the U.S. Department of Education’s office of Federal Student Aid (FSA) announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF. This change will apply to student loan borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by October 31, 2022.

Learn more about how this limited PSLF waiver may impact your loans. Act soon – the waiver ends October 31, 2022. You can also contact us with questions.

This TEPSLF opportunity is temporary, has limited funding, and will be provided on a first-come, first-served basis. Once all of the funds are used, the TEPSLF opportunity will end.

Visit StudentAid.gov/tepslf for detailed information on how to be reconsidered for loan forgiveness. While there, you can also access the PSLF Help Tool to apply electronically or download the Public Service Loan Forgiveness (PSLF) and Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF form).

Public service loan forgiveness

NOTE: On September 29, 2022, the Department of Education announced that FFELP borrowers who consolidate their loans on or after that date cannot obtain loan forgiveness under the Department of Education’s One-Time Student Loan Debt Relief plan (https://studentaid.gov/debt-relief-announcement/one-time-cancellation). Borrowers who believe they may qualify for one of the temporary forgiveness flexibilities described below should review and carefully consider their individual circumstances before choosing to consolidate based on the Department of Education's announcement that FFELP loans consolidated on or after September 29, 2022 (adsbygoogle = window.adsbygoogle || []).push({}); will not be eligible for the One-Time Student Loan Debt Relief program.

Notice to All Borrowers Regarding the Limited Public Service Loan Forgiveness Waiver

Borrowers in Public Service or Employed by Non-Profit Entities May Qualify for Enhanced Loan Forgiveness Opportunities

On October 6, 2021 the Department of Education (“Department”) announced a limited waiver of certain requirements of the Public Service Loan Forgiveness Program and the Temporary Expanded PSLF (referred to collectively herein as “PSLF”) which will increase loan forgiveness opportunities for Federal Family Education Loan Program (“FFELP”) student loan borrowers who meet qualifying public service employment requirements.

Under the limited PSLF waiver program, from Oct. 6, 2021 through Oct. 31, 2022, FFELP borrowers who meet qualifying public service employment requirements and who receive or apply for a Direct Consolidation Loan may receive credit toward forgiveness for past periods of repayment on federal student loans that would otherwise not qualify for PSLF.

Key Points: Limited PSLF Waiver Summary of Changes (adapted from https://studentaid.gov/announcements-events/pslf-limited-waiver):

• For a limited time, you may receive credit for past periods of repayment on loans that would otherwise not qualify for PSLF.
• If you have FFEL, Perkins, or other federal student loans, you will need to consolidate your loans into a Direct Consolidation Loan to qualify for PSLF under the limited waiver. Before consolidating, make sure to check to see if you work for a qualifying employer with the PSLF Help Tool listed below.
• Past periods of repayment will now count regardless of whether you made a payment, made that payment on time, for the full amount due, on a qualifying repayment plan.
• Certain periods of forbearance will now qualify, while others will continue to not qualify.

Note: The public service employment requirements and what counts as qualifying employment has not changed.  This means that to qualify, you must make 120 payments or the equivalent while employed full-time by a government, 501(c)(3) not-for-profit, or other not-for-profit organization that provides a qualifying service.

Further information on the limited waiver is available at https://studentaid.gov/announcements-events/pslf-limited-waiver.

What FFELP Borrowers Need to Know:

• FFELP loans, such as those held by ECMC or other guarantors, do not currently qualify for PSLF, but your prior periods of repayment may qualify for credit toward PSLF if you receive or apply for a Direct Consolidation Loan on or before October 31, 2022;
• Regardless of the limited PSLF waiver, your loans must be consolidated into a Direct Consolidation Loan program loan in order to qualify for PSLF; but prior periods of repayment will not qualify for credit toward PSLF if consolidated after October 31, 2022;
• To understand whether you may already have qualifying payments for PSLF under the limited PSLF waiver, you should register for an FSA ID if you don’t already have one, and log in to the PSLF Help Tool to check if your employer qualifies (you will need your employer’s Federal Employer Identification Number and you should confirm you have the correct number by checking your IRS Form W-2);
• If your employer is a qualifying employer or if you are uncertain but want your loans to qualify for PSLF and the limited PSLF waiver, you should apply for a Direct Consolidation Loan on or before October 31, 2022.
• If you apply for a Direct Consolidation Loan, we will work to process any paperwork necessary to have your loans consolidated expediently; and
• After your consolidation loan is made, you should go back to the PSLF Help Tool to certify all periods of qualifying employment.  You must also submit a PSLF Certification and Application Form to the PSLF Servicer or have used the PSLF Help Tool on StudentAid.gov to generate such a form or request that the Department determine whether your employer is qualifying or not on or before October 31, 2022.

Resources

Borrowers seeking information about PSLF, TEPSLF, or the limited PSLF waiver should review the following resources put out by Federal Student Aid or the Department of Education.  Resources available as of December 7, 2021 are below:

• StudentAid.gov/PSLFwaiver – information page on the limited PSLF waiver
• StudentAid.gov/pslf – landing page for the PSLF help tool, where borrowers can find out if the Department has previously determined that their employer qualifies for PSLF or not
• StudentAid.gov/publicservice – information page about PSLF
• StudentAid.gov/fsa-id/create-account – where borrowers can go to get an FSA ID, which will enable them to receive direct communications from the Department as well as use the PSLF Help Tool and consolidate their loans
• StudentAid.gov/consolidation – the landing page for the consolidation application
• ED Press Release and Fact Sheet
• Posts on FSA Social Media – Twitter, Facebook, Instagram, LinkedIn
• Top 10 limited PSLF waiver talking points
• Learn about the time-limited changes and how to apply

Borrowers with additional questions about the pros and cons of loan consolidation can contact ECMC at 866-945-6423. Borrowers with additional questions about the limited PSLF waiver may also contact 1-800-4-FEDAID, but the Department advises that this call center is not equipped to inform borrowers about how the waiver will or will not affect them individually.

Are consolidated loans eligible for Public Service Loan Forgiveness?

Does consolidating student loans affect PSLF?

Do payments prior to consolidation count towards PSLF?

How long does it take to consolidate loans for PSLF?