During the pandemic, Congress adopted into law a series of COVID relief measures, including changes to the Public Service Loan Forgiveness program. This newly designed program could reduce or eliminate most student loan debt for government and nonprofit employees in New York City. The program is due to expire on October 31, 2022. There are more than 250,000 New Yorkers, many of which are MCNY Students and Alumni, working in the government and nonprofit sectors with active student loans, and there may be an opportunity for you to do something about it.
You have 10 weeks to apply starting August 22, 2022. Visit PSLF.nyc and learn all you can about the Program. Then use the “Help Tool” at StudentAid.gov/PSLF to see if you are eligible before the October 31, 2022 deadline. Public Service Loan Forgiveness can be confusing. Watch the free webinar to learn more about the program.
Helpful information to review before you go to PSFL.nyc…
What is Public Service Loan Forgiveness?
The 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. It was created under the College Cost Reduction and Access act of 2007.
What do I need to qualify? To qualify, you must:
-Be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization (federal service includes U.S. military service);
-Work full-time for that agency or organization;
-Have Direct Loans (or consolidate other federal student loans into a Direct Loan);
-Make 120 qualifying payments and repay your loans under an income-driven repayment plan (This provision is waived through October 31, 2022, as part of the limited PSLF waiver. Visit the Student Aid website for more information and application).
Who is a qualifying employer? Who your employer is matters, not the specific job that you do for that employer. Employment with the following types of organizations qualify for PSLF:
-Government organizations at any level (U.S. federal, state, local, or tribal), including the U.S. military
-Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
-Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
-Contractors: You must be directly employed by a qualifying employer for your employment to count toward PSLF. If you’re employed by an organization that is doing work under a contract with a qualifying employer, it is your employer’s status, not the status of the organization that your employer has a contract with, that determines whether your employment qualifies for PSLF. For example, if you’re employed by a for-profit contractor doing work for a qualifying employer, your employment does not count toward PSLF.
What is full-time employment?
-Full-time employment for the PSLF program is 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.