Second Chance at Public Service Loan Forgiveness

Temporary Expanded Public Service Loan Forgiveness gives all borrowers a second chance at loan forgiveness. This means, you filed for PSLF and were rejected, which 99% of people were, so Congress created this second chance opportunity.  If you were on the wrong repayment plan and paid on a different plan, and as a result were rejected, you may still be eligible to get your loan forgiven. 

If you are certain you qualify for this second chance opportunity, don't know, or have filed and your payments are not being counted, LoanSense can help you. Get started on our home page.

What is the expanded act all about?

With the passage of the Consolidated Appropriations Act, 2018, Congress set aside a $350 million fund to offer PSLF to borrowers who were denied for being on the wrong student loan repayment plan.

This is a one-time-only expansion that will only be available until the funds run out, so it’s important to take action early. The below requirements comes from StudentAid.gov/tepslf.

To qualify for loan forgiveness under the TEPSLF opportunity, you must have

• submitted the Public Service Loan Forgiveness (PSLF): Application for Forgiveness (PSLF application) and had that application denied only because some or all of your payments were not made under a qualifying repayment plan for PSLF;
• had at least 10 years of full-time employment certified by a qualifying employer and approved by FedLoan Servicing;
• met the TEPSLF requirement for the amount you paid 12 months prior to applying for TEPSLF and the last payment you made before applying for TEPSLF to be at least as much as you would have paid under an income-driven repayment plan; and
• made 120 qualifying payments under the new requirements for TEPSLF while working full-time for your qualifying employer or employers.
  

   

   

  What is a qualifying payment? They are payments made:

  • after Oct. 1, 2007;
  • for the full amount due as shown on your bill;
  • no later than 15 days after your due date; and
  • while employed full-time by a qualifying employer.

What type of loans count?

Only Direct Loans—one type of federal student loan—are eligible for the TEPSLF opportunity. However, neither defaulted Direct Loans nor Direct PLUS Loans made to you as a parent borrower are eligible for forgiveness under TEPSLF.

Borrowers who have only Federal Family Education Loan (FFEL) Program, Federal Perkins Loan (Perkins Loan) Program, nonfederal, and/or private loans are not eligible for the TEPSLF opportunity.

If you are certain you qualify for this second chance opportunity or have filed and your payments are not being counted, LoanSense can help you. Get started on our home page.