Posted Date:May 23, 2018
| Author: | Federal Student Aid |
Subject: Temporary Expanded Public Service Loan Forgiveness Opportunity Now Available
The Consolidated Appropriations Act, 2018 provided limited, additional conditions under which a borrower may become eligible for loan forgiveness if some or all of the payments the borrower made on his or her William D. Ford Federal Direct Loan (Direct Loan) Program loans were under a nonqualifying repayment plan for Public Service Loan Forgiveness (PSLF). The U.S. Department of Education (the Department) is referring to this reconsideration as the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity.
The TEPSLF opportunity is temporary, has limited funding, and must be provided on a first come, first served basis. Once all of the funds are used, the TEPSLF opportunity will end. Borrowers who believe they qualify for the TEPSLF opportunity are encouraged to visit the Department’s information page at StudentAid.gov/tepslf, follow the instructions for preparing a TEPSLF request email, and send their TEPSLF request email to the Department as soon as possible.
How does a borrower qualify for TEPSLF?
TEPSLF is available only to Direct Loan borrowers. Borrowers with loans made under the Federal Family Education Loan (FFEL) Program are not eligible for the opportunity.
To qualify for loan forgiveness under the TEPSLF opportunity, the borrower 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 the borrower’s payments were not made under a qualifying repayment plan for PSLF;
had at least 10 years of eligible full-time employment certified by a qualifying employer and approved by FedLoan Servicing, the Department’s federal loan servicer for the PSLF Program; and
made 120 qualifying payments under the new requirements for TEPSLF while working full-time for the borrower’s qualifying employer or employers.
If a borrower’s PSLF application was denied, why would the borrower be eligible under TEPSLF?
The Department will reconsider a borrower’s eligibility for PSLF using an expanded list of qualifying repayment plans. Some payments that don’t count toward loan forgiveness under PSLF may count toward forgiveness under TEPSLF.
The additional qualifying repayment plans include the Graduated Repayment Plan, Extended Repayment Plan, Consolidation Standard Repayment Plan, and Consolidation Graduated Repayment Plan. These plans do not usually qualify for PSLF.
A borrower will be eligible for the TEPSLF opportunity only if, among other requirements, the amount the borrower paid 12 months prior to applying for TEPSLF and the last payment the borrower made before applying for TEPSLF are at least as much as the borrower would have paid under an income-driven repayment plan. FedLoan Servicing will assess this and contact the borrower if they need documentation of the borrower’s income to determine eligibility.
Where will a borrower find TEPSLF eligibility and process information?
The borrower will find eligibility and process information on StudentAid.gov/tepslf. This page will be updated as needed until the TEPSLF opportunity ends.
Whom should a borrower contact with questions about TEPSLF?
Borrowers should contact FedLoan Servicing at 1-855-265-4038 from 8 a.m.–9 p.m. Eastern time, Monday through Friday.
We appreciate the financial aid community’s assistance in directing potentially eligible borrowers to the TEPSLF resources provided above.