Nonprofit workers currently have until December 31 to potentially get closer to student loan forgiveness and lower their monthly payments through the federal Public Service Loan Forgiveness (PSLF) program, and the Providers’ Council is encouraging all who are eligible to participate.
The PSLF Program forgives the remaining balance on Direct Loans after making 120 monthly payments under a qualifying repayment plan while working at least 30 hours per week for the government or most types of nonprofit employers.
To start, nonprofit workers must consolidate any non-Direct Loans into the Direct Loan Program by December 31. The payment count adjustment is a time-limited opportunity that can give nonprofit workers credit toward PSLF for past repayment periods (since October 1, 2007) that would not otherwise count toward forgiveness.
If some or all of their loans are already Direct Loans, nonprofit workers should consider consolidating to speed up forgiveness. The adjustment will credit the new consolidation loan with the largest number of qualifying months among the loans that were consolidated.
To keep earning credit toward PSLF in 2024, most public service workers will also need to enroll in an income-driven repayment (IDR) plan. IDR plans base your monthly payment on your income and family size. The U.S. Dept. of Education recently implemented a new, low-cost IDR plan called SAVE.
Lastly, nonprofit workers should ensure they have employment certifications on file with MOHELA, the PSLF servicer, for all their qualifying employment periods since Oct. 1, 2007. If any periods are uncertified, they should work with their employers to fill out a PSLF Form, and submit it to MOHELA.
For more guidance, visit the state’s page on student loan assistance or view this PDF guide from the state.
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