USU Employees and the Public Service Loan Forgiveness Program (PSLF) for Student Loans
USU Employees may be eligible for the Public Service Loan Forgiveness (PSLF) Program
Did you know that as a USU employee, you may qualify for the Public Service Loan Forgiveness (PSLF) Program? Here's what you need to know:
What does the program do?
The 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.
- Employed by a U.S. federal, state, local, or tribal government or not-for-profit organization for 10 years (USU is a qualifying employer)
- Work full-time for that agency or organization (work at least 30 hours per week)
- Have Direct Loans (or consolidate other federal student loans into a Direct Loan)
- Repay your loans under an income driven employment plan (please note that this provision was waived through October 31, 2022 as part of the limited PSLF waiver)
- Make 120 qualifying payments
Other Things to Know
- The U.S. Department of Education has offered, for a limited time, the option to receive credit for past periods of repayment on loans that would otherwise not qualify for PSLF.
- If you have Federal Family Education (FFEL) Program loans, Perkins, or other federal student loans, you'll need to consolidate your loans into a Direct Consolidation Loan to qualify for PSLF, both in general and under the waiver. Before consolidating, make sure you work for a qualifying employer.
- Under the new temporary rules, any prior period of repayment will count as a qualifying payment, regardless of the loan program, repayment plan, or whether the payment was made in full or on-time. But you do continue to need qualifying employment.
- This change will apply to borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those who consolidate into the Direct Loan Program by October 31, 2022.
USU employees are invited to see if they qualify and act before the October 31, 2022 deadline.
Special thanks to Alyson Fairchild, HR Specialist, for providing this information for our members.