DENIED? Public Service Loan Forgiveness HORRORS


So you may have seen in the news that 99 percent
of the applicants to the public service loan forgiveness program have been denied. By the end of this video, you’ll know exactly
why people are being denied and how to not be one of them. We did the heavy lifting to make sure you
get your loans forgiven. If you are interested in knowing how to pay
off your student loans the fastest, make sure to subscribe and ring the bell so you never
miss a money tip with Matt and Ally. Make sure to check out the description for
more resources, there are links to two of the forms you’ll need to fill out each year
to stay on track with public service loan forgiveness and we have a free student loan
flow chart to help you pay off your student loans the fastest. So, why are people being denied for public
service loan forgiveness? By the way, if you or someone you know has
applied for public service loan forgiveness let us know in the comments below. So the first reason is that they don’t have
the right loan, so to be eligible for public service loan forgiveness, you have to be in
a Direct Loan. If you have other loans they can be consolidated
into Direct Loans to be eligible, but you have to do that first. Mhm. So number 2. They refinance their debt in the middle of
making their qualifying payments. So whenever you refinance your debt, even
if you refinance to a direct loan the clock still starts over, unfortunately. Number 3, is they didn’t make 120 qualifying
payments. In order to be a qualifying payment it has
to be for the full amount shown due, so you can’t do any partial payments, it can’t be
any later than 15 days after due date, so a late payment does not count and you have
to be employed by a qualifying employer. These are 501 C-3’s or nonprofits, you can
be employed in the government at any level that’s federal state, local or tribal, you
can work in emergency management, military service, public safety and law enforcement,
public Interest, legal services, early child education, public service for individuals
with disabilities, public service for the elderly, public health, public education and
public library services. There’s also a lot of stuff with schools,
like school library services, other school-based services, the Peace Corps and AmeriCorps also
count. So in order to also be counted as a qualifying
employer, you must be employed full-time at at least 30 hours per week and you cannot
have your loan in a grace period deferment or forbearance. So the fourth reason why people were denied
for public service loan forgiveness is that they were not on an income driven repayment
plan, so you must be on the pay as you earn, revives, pay as you earn income based repayment
or income contingent repayment. Those are the PAYE, REPAYE, IBR and ICR plans. Caveat is the standard ten year repayment
plan, also counts, so if you made a year of payments on that plan before switching to
an income based repayment plan, you’d be able to count those qualifying payments. However, if you went to it any type of extended
payment plan that is a payment period longer than 10 years, those do not count towards
qualifying payments. The fifth reason why these people are not
being approved for the public service loan forgiveness program is that they did not submit
the proper paperwork. So you must submit two pieces of paperwork,
one is the public service loan forgiveness employment verification once per year and
the income-driven payment plan income verification once per year. We linked both of those in the description
box below. Also make sure to check out the description
box and download our free student loan flow chart to help you to pay off your student
loans the fastest. Hopefully, you liked this video and if you
did give us a thumbs up and make sure to subscribe and ring the bell so you don’t miss any money
tips with Matt and Ally. Ring the bell so you don’t miss any of our
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