UNIVERSITY PARK, Pa. — Many Penn State and other public employees are eligible for the ongoing Public Service Loan Forgiveness Program (PSLF), but an April 30 deadline is nearing for starting an income-driven repayment plan, consolidating some types of loans and getting credit for past payments.
Join staff from Penn State's Sokolov-Miller Family Financial and Life Skills Center as they discuss the basics of this program, rules for qualifying, the latest updates aimed at expanding eligibility and navigating PSLF forms as a Penn State employee. This live webinar will be held at noon, Feb. 15. Audience Q&A will be welcome. Registration is required and can be found at financialliteracy.psu.edu.
Implemented in its original form in 2007, the Public Service Loan Forgiveness program forgives the remaining balance on Direct Loans after borrowers have made 120 qualifying monthly payments while working full time (30-plus hours) for a qualifying public service employer (such as Penn State).
April 30 is the current deadline for consolidating specific loans for one-time account adjustments
Student loan borrowers who have never been on an income-driven repayment plan, which is required to pursue PSLF, have until April 30 to consolidate loans that typically don’t qualify for PSLF, like FFELP loans, into Direct loans. For the one-time account adjustment, the Department of Education will count any months in a repayment status, regardless of the payments made, loan type or repayment plan, as well as some periods of forbearance or deferment toward income-driven repayment and PSLF, provided other requirements are met.
“There are many nuances to Public Service Loan Forgiveness, and we understand the process can be confusing,” said Sarah DeWolfe, assistant director of outreach and special programs at the Sokolov-Miller Family Financial and Life Skills Center. “We’ve been working with Penn Staters over the last couple of years as they pursue PSLF and learned that individuals can have their own complex student loan situations. The important thing is that people make sure they’ve taken all the steps they can to make sure they are on track for loan forgiveness. We’re here to help with that.”
Resources, individual help available
Center staff are willing to meet with Penn Staters one-on-one but may need to limit these appointments to people with FFELP or Parent Plus loans. After joining the PSLF webinar or watching the recording, any remaining PSLF questions or appointment requests can be directed to finlit@psu.edu.
Studentaid.gov features a PSLF Help Tool that can answer many questions about the program. Penn State Human Resources also has a PSLF guide available at hr.psu.edu.
Those with loans in default who want to pursue PSLF may be able to take advantage of the Fresh Start program. Fresh Start will take those loans out of default and make them available for the one-time account adjustment. The Fresh Start deadline is September 2024, but those with FFELP loans in default will want to take advantage of Fresh Start before the April 30 deadline.
Teacher Loan Forgiveness webinar slated for March 20
The Sokolov-Miller Family Financial and Life Skills Center will host a Teacher Loan Forgiveness Webinar at 6:30 p.m. Wednesday, March 20.
The center can help attendees think through their options as they consider whether to pursue Teacher Loan Forgiveness, PSLF or a combination of the two. There is no crossover between the two programs, meaning that the same period of employment and loan repayment can only count toward one program or the other.
The Sokolov-Miller Family Financial and Life Skills Center offers services to the entire Penn State community and is part of Penn State Undergraduate Education.