What Steps Should You Take to Qualify for PSLF Eligibility?
Step 1:
Verify that your loans are Direct Loans and qualify for PSLF. To view your federal student loans, log on to your FSA account at studentaid.gov.
Step 2: (Skip this step if your loans are all Direct Loans.)
If you have non-Direct Loans (FFEL or Perkins Loans) that you want to make eligible for PSLF, do the following:
- Apply to consolidate your FFEL/Perkins Loans by logging into your Federal Student Aid account at studentaid.gov.
- Select the loans you want to consolidate.
- Select MOHELA as your loan servicer and indicate that you are interested in PSLF.
Step 3:
When you begin employment with an eligible employer, complete the borrower section of the PSLF form and have your employer complete the employment section of the form. The PSLF form can be submitted electronically through the PSLF Help Tool, or by manually completing the paper form.
If MOHELA is not your current servicer, your loans will transfer to MOHELA for servicing once your PSLF form has been received and processed.
Step 4:
Apply for an income-driven repayment plan on the Federal Student Aid website or by contacting your federal loan servicer. Income-driven repayment plans are PSLF-eligible repayment plans. They also offer the lowest monthly payment when compared to other traditional repayment plans.
You can enroll in a repayment plan approximately 60 days prior to the end of your scheduled grace period.
If you want to “give up” your grace period and move into immediate repayment, you can apply for a Direct Consolidation Loan; however, you can’t apply for a Direct Consolidation Loan until your loan servicer has been officially notified by your school that you graduated/separated from school.
Step 5:
Annually, verify your income and household size information (as required for your income-driven repayment plan) and submit a PSLF form to verify your employment.
The PSLF servicer will verify the number of eligible payments you’ve made, and you will receive a letter verifying your PSLF payment count. Your PSLF payment count will only be updated when you submit another PSLF form that covers a new period of qualifying employment.
Once you’ve made 120 payments, the PSLF servicer will confirm your PSLF eligibility and forgive your remaining Direct Loan balance. You will want to continue to work for your qualifying employer and make payments until you receive notification that you officially made 120 qualifying payments.
You can verify your qualifying payment total by logging into your account with the PSLF servicer and by viewing your loan details. This information should also be found on your most recent billing statement.
Direct Loan balances forgiven through PSLF are non-taxable.