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Federal Student Loan Forgiveness Plan InformationOn August 24, President Biden announced a plan to forgive up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 for other qualifying borrowers. Biden also extended the federal student loan payment pause through December 31. This is welcome news for Russell Sage College alumni, students, and all members of our community and their families. Below, you’ll find information about the loan forgiveness program that may be helpful to you. We will update this page as more details are released by the U.S. Department of Education. Please note that the details below are subject to change. Some of the highlights of the program are:
What can borrowers do now?
Please note that this program is administered by the U.S. Department of Education, and not by Russell Sage College or any other college or university you may have attended. We will update this information as we learn more. Public Service Loan ForgivenessWhat is Public Service Loan Forgiveness?Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. How do I qualify?To qualify for PSLF, you must:
Who is a qualifying employer?Qualifying employment for the PSLF Program isn’t about the specific job that you do for your employer. Instead, it’s about who your employer is. Employment with the following types of organizations qualifies for PSLF:
For example, if you’re employed by a for-profit contractor that is doing work for a qualifying employer, your employment does not count toward PSLF.
The following types of employers don’t qualify for PSLF:
What is full-time employment?For PSLF, you’re generally considered to work full-time if you meet your employer’s definition of full-time or work at least 30 hours per week, whichever is greater. If you are employed in more than one qualifying part-time job at the same time, you will be considered full-time if you work a combined average of at least 30 hours per week with your employers. If you are employed by a not-for-profit organization, time spent on religious instruction, worship services, or any form of proselytizing as a part of your job responsibilities may be counted toward meeting the full-time employment requirement. What type of loans qualify?Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF. Loans from these Direct Loan programs don’t qualify for PSLF:
However, they may become eligible if you consolidate them into a Direct Consolidation Loan. What counts as a qualifying payment?
How do I apply?Use the PSLF Help Tool for all of the following:
Contact for PSLF Questions If you have more questions, visit PSLF FAQ. If your questions aren’t covered on that page, contact MOHELA at 1-855-265-4038. Teacher Loan ForgivenessThis loan forgiveness program is provided to full-time teachers who have taught for five complete and consecutive academic years in a school serving students from low-income families. For more information, please review the Department of Education’s Teacher Loan Forgiveness overview. (Does not include PLUS loans.) Fresh Start InitiativeWhat Is the Fresh Start Initiative?The Department of Education is helping student loan borrowers who are in student loan delinquency or student loan default get a fresh start on their student loans after student loan payment pause through December 31, 2022 is lifted. Under the Fresh Start Program, borrowers whose federal student loans were delinquent or in default prior to the pandemic will be able to re-enter repayment in good standing. What is student loan delinquency?The first day after you miss a student loan payment, your loan becomes past due, or delinquent. Your loan account remains delinquent until you repay the past due amount or make other arrangements, such as deferment or forbearance, or changing repayment plans. What is student loan default?If your loan continues to be delinquent, the loan may go into default. The point when a loan is considered to be in default varies depending on the type of loan you received. For a loan made under the William D. Ford Federal Direct Loan Program or the Federal Family Education Loan Program, you are considered to be in default if you do not make your scheduled student loan payments for at least 270 days. For a loan made under the Federal Perkins Loan Program, the holder of the loan may declare the loan to be in default if you do not make your scheduled payment by the due date. What type of loans qualify?
Loans not eligible for Fresh Start:
If you are not sure whether your loans qualify, you can call the Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hard of hearing 1-877-825-9923) For more informationYou can visit the Federal Student Aid website’s chart for a listing of the forgiveness and cancellation options that are available. Information is also outlined regarding all eligibility requirements. Do federal student loans get forgiven?In certain situations, you can have your federal student loans forgiven, canceled, or discharged. Learn more about the types of forgiveness and whether you qualify due to your job or other circumstances.
How do I know if my student loans are forgiven?How will I know when my loans are forgiven? The Department of Education will notify you when your application is approved, and your loan servicer will update you once your loans are forgiven.
Which student loans are not forgiven?As of Thursday, borrowers with student loans through the Federal Family Education Loan (FFEL) program and Perkins Loans who have not already consolidated their debt into direct loans will now no longer be able to do so and are no longer eligible for federal debt relief, the Education Department now says.
Do all student loans qualify for forgiveness?All government-held federal student loans, including undergraduate, graduate, and Parent PLUS loans, are potentially eligible for relief. This would include Direct federal student loans, as well as FFELP loans that are in default or already administered by the Education Department.
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