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VIDEO: Public Service Loan Forgiveness Explained | Your Path to Student Loan Relief Thumbnail

VIDEO: Public Service Loan Forgiveness Explained | Your Path to Student Loan Relief

Student Loans

by Leah Woodly

Are you working in public service and feeling weighed down by student loans? The Public Service Loan Forgiveness (PSLF) program could be the answer you've been searching for to reach financial freedom. In this post, we'll break down everything you need to know about PSLF, including eligibility requirements, steps to qualify, and common pitfalls to avoid.

What is PSLF?

PSLF is a federal program designed to help borrowers in public service fields (like education, government, and nonprofit organizations) eliminate their remaining student loan balance after making 120 qualifying monthly payments. With PSLF, the goal is to provide relief to those who dedicate their careers to serving communities.

Who Qualifies for PSLF?

PSLF eligibility hinges on three main requirements:

  1. Employment: You must work full-time for a qualifying public service employer, such as a government agency or nonprofit.
  2. Loan Type: Only Direct Loans qualify for PSLF, so you may need to consolidate other federal loans into a Direct Consolidation Loan.
  3. Repayment Plan: You must be on an income-driven repayment (IDR) plan to ensure your payments count towards the 120 required for PSLF.

Steps to Ensure Your Payments Count

  1. Confirm Employment: Regularly submit the Employment Certification Form (ECF) to ensure your job meets the PSLF requirements.
  2. Verify Loan Type: Make sure your loans are Direct Loans. If not, consolidate them through StudentAid.gov.
  3. Choose the Right Repayment Plan: IDR plans are essential for PSLF qualification. Avoid standard or graduated repayment plans that could disqualify you.

How to Submit Your Employment Certification Form (ECF)

Submitting your ECF annually (or anytime you switch employers) is crucial to keep track of qualifying payments. You can download the form from StudentAid.gov and submit it through your loan servicer. This form verifies your employment status and helps avoid last-minute issues down the line.

Common Mistakes to Avoid on Your PSLF Journey

  • Not Submitting the ECF Regularly: Skipping this step can lead to missed payments that don't count toward your 120-payment requirement.
  • Choosing the Wrong Repayment Plan: Only IDR plans count for PSLF, so confirm you're on the correct plan.
  • Forgetting to Re-Certify Annually: Income-driven repayment plans require yearly re-certification, so set reminders to keep your plan active.

Ready to Begin Your PSLF Journey?

Take the first step toward student loan forgiveness by learning the PSLF basics and making sure your payments count. For more insights and guidance, watch our video, where we go in-depth on PSLF qualifications, repayment tips, and how to stay on the path to forgiveness.

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Ready to break free from student loan debt? Let us guide you through the process, step by step. Hit play, subscribe, and don’t forget to ask any questions you may have in the comments!

This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Dorval & Chorne Financial Advisors is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.