Some BU employees might be eligible for certain federal student loan forgiveness, but they might not know it.
The Public Service Loan Forgiveness Program (PSLF) clears eligible loan balances for full-time employees of non-profit organizations such as the University (government employees are also eligible). Below a waiver Under the normal rules in effect until October 31, more borrowers can qualify for a discount, including some who may have been denied eligibility in the past.
The University hosted a webinar to explain the waiver on Monday, September 19, from 3-4:30 p.m. The Massachusetts-based Institute of Student Loan Advisors will host the webinar; Register here.
The PSLF program is for people Direct loans, which are borrowed directly from the U.S. Department of Education for attendance at participating schools. Generally, to qualify for the rebate, the employee must have made 120 qualifying payments on their loans.
Other federal loans are not eligible for PSLF forgiveness unless the borrower combines them into what is called a direct consolidation loan. Generally, the Department of Education website states, “Only eligible payments you make on the new Direct Consolidation Loan can be counted towards the 120 payments required for the PSLF. Any payments you made on the loans before consolidating them don’t count. »
But under the waiver, a consolidated loan created before Oct. 31 could qualify for a forgiveness credit for payments made before consolidation. The waiver also expands the types of federal loans eligible for forgiveness, as well as eligible repayment plans.
“I think it’s safe to say that there are a number of employees who may have benefited from this [forgiveness] program, and now potentially many more,” says Amanda Bailey, vice president of human resources at the University.
I think it’s fair to say that there are a number of employees who have benefited from this program, and now potentially many more.
It’s unclear how many BU employees could be affected because “we don’t know who borrowed federal loans,” says Christine McGuire, vice president and vice president for student enrollment and administration. . “Some might have borrowed while they were at BU, but many more would have borrowed from other schools.”
Here are some frequently asked questions and answers about the forgiveness program, compiled by the University:
I have completed my application and need to verify my employment with BU. What do I do?
Please send your completed application to the Human Resources Service Center or contact an HR Service Center representative at 617-353-2380.
How do I know how many qualifying payments I have made towards the 120 payments required for the rebate?
Once you have applied and been accepted into the PSLF program, your agent will review your payments and determine the number of eligible payments you have made. Any questions you have about their payment statement can be directed to your repairer directly.
Under the PSLF Limited Waiver, do payments I made for my loans during a deferment period count toward the 120 payments required for forgiveness?
Some types of deferment periods are included in the PSLF Limited Waiver, but not all. You can find answers to many questions regarding adjournment here. You can also contact your repairer directly with any questions regarding your particular situation.
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