See if You Qualify for Public Service Loan Forgiveness With This Tool

See if You Qualify for Public Service Loan Forgiveness With This Tool
Photo: SFIO CRACHO (Shutterstock)

As the election approaches, student loan forgiveness has become a popular topic. While some politicians have proposed student loan forgiveness, the current Public Service Loan Forgiveness (PSLF) program has had some difficulties.

Recently, the Department of Education released new data for its PSLF program—and the numbers still look grim. According to the latest report, only 2.37% of applicants have been eligible for PSLF. Since 2018, the program has been under fire for high rejection rates.

One of the reasons for the rejections is the program’s strict criteria. Borrowers must meet the following to qualify for PSLF:

To make sure you’re on track, you can submit the Public Service Loan Forgiveness: Employment Certification Form every year or when you change jobs. But unfortunately, many borrowers have been confused about whether their jobs qualify.

One of the most common reasons for rejection—24% of applications, according to the latest report—is missing information. This refers to the borrower’s missing employment certification. Luckily, the PSLF Help Tool has a new feature that may make the process easier.

Last month, the Department of Education announced an upgrade to the PSLF Help Tool. The update includes an employer search feature. You can now use your company’s Federal Employer Identification Number (FEIN or EIN) and employment dates to see if your work qualifies.

The system will provide one of three statuses: eligible, ineligible, or likely ineligible for PSLF. “Likely ineligible” means the employer is tax-exempt but not a 501(c) organization. It may mean the Department hasn’t decided if your organization is eligible yet—but according to the website, you shouldn’t count on it.

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This new update makes it easier to see if your work qualifies and may prevent you from submitting ineligible forms. The Department says it will continue to monitor and update the database.

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