started ten years ago, providing forgiveness
of the balance of student loans after ten
years of payments IF you worked in qualified jobs during those ten years.
Who Will Qualify for PSLF?
Unfortunately, lots of folks who think they are getting student loans forgiven – will not.
From the Jillian Berman story linked to above:
(PSLF), which allows borrowers who work for the government or nonprofits to have certain federal loans forgiven after 10 years of qualified payments.
Like lots of stuff from our government, sounds simple.
Now, to get forgiveness, they want you to prove that you made the payments, and your employers have to sign off that you worked there.
The exact steps borrowers will need to take to claim forgiveness only recently became clear. They’ll need to fill out an application form and have their current employer sign it. In addition, all 120 payments borrowers made towards the program will need to be certified to ensure they have the right type of loan — a federal direct loan, not a loan under the Federal Family Education Loan program — and are working for a qualifying employer.
Borrowers are able to have their payments certified as they go and experts recommend they file the necessary documentation, known as employer certification forms, every year. But if borrowers haven’t been keeping up with that process, they’ll need to go back to old employers to have their payments certified before they can get forgiveness.
Don’t wait, check now how you stand and what you need to do to protect yourself if you are shooting for PSLF.
Other Student Loan News
Not sure what this means, but I found it interesting.
Michael Durkheimer writes in Forbes that men are more likely to default on student loans, though women owe much more of the total debt. In fact, men default more than women on other types of debt as well.
Out of the 44 million student loan borrowers in America, more than 4.2 million were in default at the end of 2016. In 2016 alone, 1.1 million borrowers went into or re-entered default — almost 3,000 new defaults every day. New polling data of millennial borrowers reveals that default rates differ between men and women. More than one-in-three millennial men report having defaulted or entered forbearance on their student loans. Among millennial women, the default/forbearance rate is about one-in-four.
As my favorite blog, Instapundit, alway says:
We should either abolish student loans, or put universities on the hook when graduates can’t pay them. Skin in the game.