How to Claim $ 350 Million in Student Loan Forgiveness

There is $ 350 million in student loan forgiveness available on a first come, first served basis.

Here’s what you need to know and how to apply.

Temporary waiver of the extended civil service loan

Wednesday, the US Department of Education added a page on its website with details on the Extended Civil Service Temporary Loan forgiveness program.

The Consolidated Appropriations Act of 2018 allocated $ 350 million in funds to student loan borrowers who previously chose an ineligible repayment plan under the Public Service Loan forgiveness program.

If you meet all of the requirements for the Public Service Loan Waiver Program, but were enrolled in an ineligible repayment plan (i.e., Gradual or Extended Repayment Plans), you may now have a second chance. exemption from your student loan.

Funds are available until exhaustion.

How to Apply for a Temporary Waiver of an Extended Public Service Loan

the Public service loan remission is a federal program that waives federal student loans for borrowers who are employed full time (more than 30 hours per week) in a qualifying federal, state or local public service job or 501 (c) nonprofit job (3) making 120 qualifying one-time payments over 10 years.

Over 700,000 borrowers have completed an employment certificate form for the public service loan forgiveness program. However, many do not meet the requirements.

Here’s what you need to know to make sure you qualify:

1. You must be working for an eligible public service employer in an eligible public service role.

You must hold an eligible position in the public service for an eligible employer. Typically, there are two general types:

– State, local and federal government

– 501 (c) (3) non-profit

If you work for another employer not covered by these two categories, you can contact the US Department of Education to determine if your role and organization are eligible.

2. You must have direct federal student loans

The public service loan forgiveness program does not waive private student loans, even if you work in the public service.

If you work in the private sector or work for a non-profit organization in a non-public role, you will not be eligible for this program. You must have direct federal student loans such as Stafford loans to be eligible.

You can confirm with your student loan manager that you have direct student loans or check with Federal Student Aid.

You can also consolidate your federal student loans into a direct consolidation loan with the federal government to qualify for public service forgiveness loans.

3. You must be enrolled in a federal reimbursement program

You must also be enrolled in a federal income-based reimbursement program. You must then make 120 monthly payments on time (over 10 years) to qualify.

You can determine which student loan repayment plan is best for you with these student loan calculator.

4. You must have applied for a utility loan discount and been rejected

Your request had to be refused only because some or all of your payments were not made under an eligible repayment plan for the public service loan forgiveness.

What additional reimbursement plans are eligible?

The Department of Education will reconsider your application with an expanded list of eligible repayment plans, although those repayment plans generally do not count towards the remission of public service loans.

Eligible additional repayment plans include the Gradual Repayment Plan, the Extended Repayment Plan, the Consolidation Standard Repayment Plan, and the Consolidation Gradual Repayment Plan.

How to apply for a temporary exemption from an extended public service loan?

Follow these three steps:

  1. Send an email to FedLoan Servicing asking the Department of Education to reconsider your eligibility for the Civil Service Loan remission.
  2. Include the same name you submitted your Public Service Loan forgiveness application under and your date of birth in the email.
  3. Send the email to [email protected]

Here’s an example of an email template you can use:

To: [email protected]

Subject: TEPSLF request

I ask the United States Department of Education to respectfully reconsider my eligibility for public service loan cancellation.

  • Last name: [Enter the same name under which you submitted your Public Service Loan Forgiveness application]
  • Date of Birth: [Enter your date of birth in MM/DD/YYYY format]

Thanks for your consideration.


your name

You will receive a response from FedLoan Servicing once your request has been reviewed. Separately, you can contact FedLoan Servicing at 1-855-265-4038 from 8 a.m. to 9 p.m. EST, Monday through Friday.

Can your loan be canceled under this program even if you do not work in the public service?

Although your student loans are not canceled, you may be able to reduce your interest rate by refinancing your student loans. A lower interest rate can save substantial interest payments over the life of your student loans.

With student loan refinancing, you can combine your existing private student loans and / or federal student loans into a single new student loan with a lower interest rate and one monthly payment. Your new student loan will be a private student loan with a single student loan manager, making it easier to manage your monthly payment.

You won’t have access to federal government repayment plans and benefits, but many private student loan lenders now offer forbearance and deferral programs in case of economic hardship.

With student loan refinancing, depending on your current interest rate, loan balance, income, and credit profile, you may receive a lower interest rate which could help you save significantly. The higher your loan balance, the more you can potentially save.