Public Service Loan Forgiveness program - PSC CUNY (2022)

Public Service Loan Forgiveness program - PSC CUNY (1)

Assembly Member Harvey Epstein is a coauthor of a bill that will make adjunct faculty eligible for Public Service Loan Forgiveness.

What is Public Service Loan Forgiveness?

The federal Public Service Loan Forgiveness (PSLF) program was designed to encourage graduates with student loan debt to enter public service. The PSLF program can award forgiveness of federal Direct Loan student debt remaining after ten years of eligible public service and 120 loan payments (ten years of monthly payments). CUNY is an eligible public service institution, as are other public and non-profit colleges and schools.

Many New York Adjuncts Will Soon Qualify for Public Service Loan Forgiveness

As reported in the Clarionand our previous emails to PSC members, the PSC worked withHarvey Epstein(AD74) and Kevin Thomas (SD6) to pass a NYS billA9523/S8389 which will enable adjunct “PT” eligibility for the federal Public Service Loan Forgiveness program. The NYS bill will permit CUNY adjunct contact hours per semester to be multiplied by 3.35 for purposes of PSLF eligibility; three typical 3 credit courses will reach 30 hour minimum for FT credit.Teaching adjunct hours can be applied for in combination with other public service employment during the same period to reach the 30 hour threshold,e.g. teaching at other non-profit colleges and/or working for other eligible employment (e.g. non-profit or government social work).As of this mailing, we are awaiting Gov Hochul to sign the bill to become law. Do not submit employment verification forms to CUNY campus HR until signed by the Governor.

“Biden Waiver” to Allow Faster Public Service Loan Forgiveness Expires October 31

The American Federation of Teachers, our national affiliate, has negotiated with the Biden administration to create a special waiver to expand the types of eligible federal loans (provided they are consolidated) and broaden the periods counting towards the required 120 payments including the period of suspended federal student loan payments, but they must be applied for prior to October 31, 2022 with documentation from employers and completion of loan consolidation.Read more about the “Biden Waiver “and the October 31 deadline.

Adjuncts: Get Started on Loan Consolidation | Be Ready to Apply to CUNY

TheStudent Borrower Protection Centerrecommends that adjuncts wait until the Epstein/Thomas Bill bill is signed by Governor Hochul before submitting their application forms to CUNY campuses to document public service. But adjuncts should begin the process of PSLF application as soon as possible, starting with learning about the process of application and consolidating all student federal loans into one federal Direct Loan.

PSC, NYSUT & AFT Resources

NYSUT and the American Federation of Teachers are statewide and national affiliates of our union. PSC-CUNY members are automatically members of NYSUT and AFT.

(Video) Public Service Loan Forgiveness (PSLF) Program Webinar

ForgiveMyStudentDebt.Org

PSLF step-by-step

FAQ

(Video) CUNY Adjunct Workshop on applying for PSLF

Video Overview

Video Biden Waivers expires Oct 31, 2022

General PSLF Webinars and Resources not specific to Higher Education

Education Debt Consumer Assistance Program–EDCAP(Community Service Society of New York). Offers free and unbiased student loan counseling services and can guide you through the PSLF application process. EDCAP is funded by NYS.

PSLF.nyc (Offers free webinars and resources to guide PSLF applications. Funded by Robin Hood Foundation.)

Student Borrower Protection Center PSLF Project(videos, guides, FAQ)

US Dept of Education (DOE) Student Aid

Share your experiences and tips applying for PSLF + Suggestions for additional resources for this Webpage

About Part Time Eligibility & NYS Bills A9523/S8389

PSC-CUNY worked with Harvey Epstein (AD74) and Kevin Thomas (SD6) to lobby and pass the NYS bill A9523/S8389 that requires NYS colleges to report adjunct “PT” eligibility for the federal Public Service Loan Forgiveness program more closely to actual hours worked than misleading “contact hours.”

Historically it is our understanding that reporting of hours worked of PT faculty is inconsistent, but within the ability of CUNY campuses to consistently report to PSLF FT eligibility for adjuncts under the same parameters of the bill.

The Department of Education requires “FT” public service to qualify for PSLF. Full time tenure track faculty and staff are consistently reported full time by eligible institutions. Ambiguity arises with “part-time” adjunct faculty that are paid by “contact hour” which does not reflect the actual hours of work. Some colleges have reported to PSLF program adjunct faculty hours worked by contact hours, for instance 3 hours per 3 credit class for a total of 9 hours a week for three classes, resulting in adjuncts being turned down by the PSLF program for those semesters. However it is within the scope of the federal guidelines for colleges to report adjuncts teaching for instance three three credit courses of working 30 hours of week and to qualify as FT public service for the purposes of the PSLF program, which some colleges do. The NYS bill requires CUNY colleges to report Adjunct work at CUNY to be 3.35 times contact hours. Hours worked can be combined with employment at other eligible institutions, e.g. other non-profit colleges and other eligible nonprofit employment. To do so, adjuncts need to apply to each institution to document with the PSLF program.

About “Biden Waiver” & Deadline October 31, 2022.

The AFT sued the US Department of Education about the high rate of rejections of PSLF applications and negotiated with the Biden administration special waivers to expand the types of eligible federal loans and broaden the periods that count towards the required 120 payments including some periods of suspended federal student loan payments (e.g. Covid suspensions).

(Video) Pre-Retirement Seminar Pension and TIAA 2022

PSLF applications are required to be applied for by October 31st 2022 to be eligible for all of the “Biden Waivers.” This includes application and completion of federal loan consolidation and submission of employer public service documentation. The ten years of public service and 120 payments need not be completed at the time of the PSLF application and can be updated annually.

Quick Links

PSC Member crowd-sourced PSLF Tips & Experiences (shared google doc)

NYSUT PSLF webinars

NYSUT PSLF counseling session appointments

AFT PSLF Information & News

AFT PSLF resources

AFT PSLF “Summer” online guide

AFT Partnership Forgive My Student Debt Videos, Step-by-Step, and FAQ

EDCAP Webinars Upcoming & Recorded

Student Borrower Protection Center (SBPC) PSLF Project (videos, guides, FAQ)

US DOE Student Aid: All things Student Aid

US DOE Student Aid PSLF

US DOE PSLF Employment and Application Form Help Tool

Bill expands debt relief for adjuncts: crucial state legislation, Ari Paul, PSC-CUNY, Clarion, July 2022

NYS bill A9523/S8389 Passed by Assembly & Senate, awaiting Gov Hochul’s Signature (tentatively early September)

(Video) Hochul announces plan to help public servants seeking loan forgiveness

Biden administration temporarily expands student loan forgiveness program for public servants, By Danielle Douglas-Gabriel, October 6, 2021

PSLF.nyc Offers free webinars and resources to guide PSLF applications. Funded by Robin Hood Foundation.

DOE PSLF Employment Verification for Public Service Form

FAQs

Who qualifies for the public loan forgiveness program? ›

Employment with the following types of organizations qualifies for PSLF: Government organizations at any level (U.S. federal, state, local, or tribal) – this includes the U.S. military. Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.

Do colleges qualify for PSLF? ›

No. Only U.S. federal, state, local, and tribal government organizations, agencies, or entities are qualifying employers for purposes of PSLF.

Is the PSLF program worth it? ›

If you have a large amount of student loan debt, then Public Service Loan Forgiveness (PSLF) could potentially save you thousands of dollars. It also might knock years off your student loan repayment timeline. You must meet all of the criteria to be eligible for college loan forgiveness, but the payoff can be worth it.

How much can you get from public service loan forgiveness? ›

Term. Depending on the payment plan selected, your forgiveness with PSLF would be up to $24,150.

Which student loans will be forgiven? ›

The administration plan would cancel up to $20,000 for those who received federal Pell Grants, or up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 a year, or are married and jointly earn less than $250,000 annually. Borrowers with private loans do not qualify for forgiveness.

Does PSLF forgive all loans? ›

PSLF discharges any remaining federal student loan balance after borrowers make 10 years' worth of payments.

Do private colleges count for PSLF? ›

However, if the organization is a labor union or a partisan political organization, it isn't an eligible PSLF employer. Eligible not-for-profit organizations include most private elementary and secondary schools, private colleges and universities, and thousands of other organizations.

Does a community college count for PSLF? ›

Your employer is a qualified employer for PSLF purposes if you work for: The government (city, state, federal, military, public schools, community colleges, public universities, etc.

Is working at a university considered public service? ›

Jobs with federal, state, local or tribal government organizations, public child or family service agencies, 501(c)(3) non-profit organizations, or tribal colleges or universities should be considered “public service jobs.” Government employers include the military and public schools and colleges.

How long does it take to be approved for PSLF? ›

Please allow at least 90 business days for your form to be processed. Loans NOT serviced by MOHELA? Your demographic information will not be on file until the PSLF form is processed which is currently taking at least 90 business days.

How many people received PSLF? ›

Among processed applications for Public Service Loan Forgiveness (PSLF), 2.16% have been accepted since November 2020.
...
Temporary Expanded Public Service Loan Forgiveness (TEPSLF)
Total Claims ApprovedTotal Claims Denied
May 2020Total Claims Approved 1,931Total Claims Denied 31,225
7 more rows
1 Jan 2022

What are the drawbacks of student loan forgiveness? ›

  • Con 1. Student loan forgiveness is an abuse of the loan system. ...
  • Con 2. Student loan debt forgiveness would disproportionately help rich or more financially secure college graduates. ...
  • Con 3. Discharging student loan debt would only be a temporary bandage for the much larger problem of inflated college costs. ...
  • Con 4.

How do you qualify for student loan forgiveness? ›

Frequently Asked Questions
  • To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)
  • If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

Are student loans forgiven after 20 years? ›

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

Who is taking over public service loan forgiveness? ›

For borrowers who submitted a PSLF form for the first time after May 1, 2022, and have yet to be transferred, these accounts will be transferred to MOHELA after July 1, 2022. FedLoan Servicing will continue to process PSLF forms and will identify borrowers for transfer to MOHELA.

Who qualifies for Biden loan forgiveness? ›

Who qualifies for loan cancellation? Individuals who are single and earn $125,000 or less will qualify for the $10,000 in debt cancellation. If you're married and file your taxes jointly or are a head of household, you qualify if your income is $250,000 or below.

Are student loans being forgiven after 10 years? ›

Under the new rule, loan balances will be forgiven after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less, according to a Department of Education statement.

Did Biden forgive student loans? ›

The Biden administration recently announced it will forgive roughly $500 billion in student debt. Up to $20,000 in debt will be forgiven for Pell Grant recipients and $10,000 for other borrowers. Borrowers whose income was under $125,000 ($250,000 if married) in either 2020 or 2021 are eligible.

How do I check my PSLF status? ›

To check the status of your PLUS loan application, contact the Federal Student Aid Information Center at 1-800-433-3243, or initiate a chat on StudentAid.gov.

Do you have to make 120 payments for PSLF? ›

Do I need to make consecutive payments to qualify for Public Service Loan Forgiveness (PSLF)? No. The 120 payments do not have to be consecutive payments. For example, if you have a period of employment with a nonqualifying employer, you won't lose credit for prior qualifying payments you made.

What if I made more than 120 payments PSLF? ›

If you made payments after your 120th qualifying payment, those payments will be treated as overpayments and refunded to you.

Can I get loan forgiveness if I work at a private school? ›

You can't get forgiveness with private student loans, unlike with their federal counterparts. The primary perks of refinancing private loans are a better rate and a lower monthly payment. Take advantage of state loan assistance programs if you work in a specific profession.

Can I get student loan forgiveness if I work at a private school? ›

Only borrowers who work for a qualifying nonprofit or government organization are eligible for PSLF. Almost all teachers will qualify for PSLF if they work for a public or private school. When working toward PSLF, borrowers should switch to an income-driven repayment (IDR) plan.

Is PSLF going away? ›

You can find out other information about the temporary changes on PSLF.gov. You must apply to PSLF before the temporary changes end on October 31, 2022. While providing this relief to low- and middle-income borrowers, the President is focused on keeping college costs under control.

Do Community College professors qualify for PSLF? ›

These requirements include: You need to work for a government organization. If you are a professor working at a public state college or city college, you will meet this requirement and thus be able to qualify for PSLF.

What careers are considered public service? ›

What is a public service job?
  • Federal, state, local and tribal government agencies.
  • Americorps (full-time) and Peace Corps.
  • Military and public health services jobs.
  • Law enforcement positions or public service law.
  • Public school, college and university jobs, including administrative and teaching roles.
4 Sept 2020

Does PSLF contact your employer? ›

The PSLF servicer will confirm that your employer is a qualifying employer based on the information provided on the PSLF form that you submit. In some cases, the PSLF servicer may require additional documentation about your qualifying employment.

Does PSLF refund money? ›

You can get a refund for any payments you make during the payment pause (March 13, 2020, through Dec. 31, 2022). Even if you get a refund, that month still counts toward PSLF, as long as all other qualifications are met. Just call your servicer to ask for a refund.

Is student loan forgiveness automatic? ›

The Education Department has indicated that around eight million federal student loan borrowers may receive student loan forgiveness automatically, without needing to submit a formal application.

Why were so many people denied PSLF? ›

The vast majority of rejected PSLF applications were because the applicant did not have the right type of loan. To be eligible for the Public Service Loan Forgiveness program, your student loans must be federal direct loans, including: Direct subsidized and unsubsidized loans.

Is public loan forgiveness legit? ›

There are real federal loan forgiveness programs out there, including Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness. But many companies will try to take advantage of borrowers by guaranteeing immediate results or requesting money up front for services they cannot provide.

How much student loans are forgiven? ›

President Biden announced a sweeping student loan forgiveness plan last month that will cancel up to $20,000 in student loans for qualifying borrowers. The Education Department estimates that up to 20 million borrowers will have their federal student loans completely erased.

Does student loan forgiveness hurt credit? ›

Don't expect a 'huge' effect on your credit score

Student loan forgiveness will probably have a modest impact on your credit score, said Ted Rossman, a senior industry analyst at CreditCards.com. “I don't think it will be huge,” Rossman said.

What happens if your student loans are forgiven? ›

If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you are no longer obligated to make loan payments. If you qualify for forgiveness, cancellation, or discharge of only a portion of your loan, you are responsible for repaying the remaining balance.

What happens after you submit PSLF form? ›

Once you submit the PSLF form, PSLF servicer FedLoan will review it to ensure that it's complete and to determine whether your loans and employment qualify for the PSLF Program. If we verify that your employment qualifies, we will then review your payment history.

Do I qualify for PSLF waiver? ›

To be considered for the limited PSLF waiver, you must have a Direct Loan. If you don't, you have until Oct. 31, 2022, to consolidate your loans into a Direct Loan. Consolidation is when any or all of your federal student loans are combined, giving you one monthly payment.

How does the loan forgiveness program work? ›

If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you are no longer obligated to make loan payments. If you qualify for forgiveness, cancellation, or discharge of only a portion of your loan, you are responsible for repaying the remaining balance.

How long does it take to be approved for PSLF? ›

Please allow at least 90 business days for your form to be processed. Loans NOT serviced by MOHELA? Your demographic information will not be on file until the PSLF form is processed which is currently taking at least 90 business days.

How do I check my PSLF status? ›

To check the status of your PLUS loan application, contact the Federal Student Aid Information Center at 1-800-433-3243, or initiate a chat on StudentAid.gov.

How far back does the PSLF waiver go? ›

Forbearance periods of 12 consecutive months or greater, or 36 cumulative months or greater will count under the waiver. In fall 2022, ED will begin making account adjustments to include these periods. Forbearance periods provided by the COVID-19 emergency relief flexibilities are not included toward these months.

Are student loans forgiven after 20 years? ›

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

Are student loans being forgiven after 10 years? ›

Under the new rule, loan balances will be forgiven after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less, according to a Department of Education statement.

How do you qualify for student loan forgiveness? ›

Frequently Asked Questions
  • To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)
  • If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

Is student loan forgiveness automatic? ›

The Education Department has indicated that around eight million federal student loan borrowers may receive student loan forgiveness automatically, without needing to submit a formal application.

Do I qualify for student loan forgiveness if I am still in school? ›

If the borrower is still in school and independent, federal student loan forgiveness would be based on the borrower's income. If the borrower is no longer in college, it is based on the borrower's income. More: Who qualifies for forgivenessHow to know the application deadline, get a refund if you paid during pandemic.

Does PSLF contact your employer? ›

The PSLF servicer will confirm that your employer is a qualifying employer based on the information provided on the PSLF form that you submit. In some cases, the PSLF servicer may require additional documentation about your qualifying employment.

What do I have to do to get the 10000 student loan forgiveness? ›

Under the new initiative, millions of federal student loan borrowers will be eligible for $10,000 in loan forgiveness, or up to $20,000 if they received Pell Grants. To qualify, borrowers must earn under $125,000 per year in income, or $250,000 if they are married.

Who do I send my PSLF form to? ›

Return the completed form and any documentation to: Mail to: U.S. Department of Education, MOHELA, 633 Spirit Drive, Chesterfield, MO 63005-1243. Fax to: 866-222-7060. Upload to: mohela.com/uploadDocument, if MOHELA is already your servicer.

What happens after submitting PSLF application? ›

Once you submit the PSLF form, PSLF servicer FedLoan will review it to ensure that it's complete and to determine whether your loans and employment qualify for the PSLF Program. If we verify that your employment qualifies, we will then review your payment history.

Who is taking over PSLF? ›

On June 3, the Education Department confirmed that starting this summer, PSLF borrowers will be transferred from FedLoan to MOHELA, one of the Department's other student loan servicers. MOHELA will be taking over administering the PSLF program.

Are federal student loans forgiven? ›

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal, or local government; the military; or a qualifying non-profit.

Videos

1. Retiree Chapter Meeting 5/3/2021
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2. Labor and Communities Fight for Budget Justice
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3. UUP President Fred Kowal speaks at PSLF bill signing ceremony, Sept. 15, New York City
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4. Higher Education - 2022 New York State Budget Public Hearing
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