Here’s why you were rejected for student loan forgiveness.
Here’s what you need to know – and what to do about it.
Student Loan Forgiveness
If you’ve read the latest headlines, 99% of borrowers have been rejected for student loan forgiveness. Yes, 99%. Congress then created an expanded $700 million student loan forgiveness program to help some of the 99% of borrowers who were rejected for the public service loan forgiveness program. The problem is that 99% of borrowers who were looking for a tranche of that student loan cancellation program have also been rejected.
So what gives?
What gives is that there is a lot of confusion around who qualifies, how it all works, and how to make sure you won’t be rejected.
So, let’s make sure you know all the rules.
the Civil Service Loan Cancellation Program is a federal program that cancels federal student loans for borrowers who are employed full-time (more than 30 hours per week) in eligible federal, state, or local public service employment or 501(c) nonprofit employment (3) who make 120 eligible payments on time.
Now that you know what student loan forgiveness requires, let’s make sure we follow all these essential steps:
1. Complete the Employment Attestation Form
What’s one important thing you can do to make sure you’re on the right track for civil service loan forgiveness? Complete it Attestation of employment form.
How often do you need to submit the employment attestation form for civil service loan cancellation?
You must submit this form:
- when you start a job in the public service
- when you change employers
Easy enough. Don’t forget that.
2. Check Your Employment Certification Form for Errors
It may seem obvious, but most people get rejected for student loan forgiveness because of these common mistakes:
- information on a certification form that does not match previous forms
- missing information such as employer’s address
- not filling in all required fields
- correct errors on the form, then do not put your initials next to the corrected errors
Don’t let any of these mistakes keep you from receiving student loan forgiveness. They seem minor, but many student borrowers have been rejected for this reason.
3. Make sure your employer signs your attestation of employment form
Your employer must also sign your work certificate. Not your colleague. Not your lunch buddy. Not the office manager. An authorized signing officer from your employer must sign your Attestation of Employment form.
4. Enroll in an Income-Based Federal Student Loan Repayment Plan
You can’t just start paying off your student loans. To qualify for Public Service Loan Forgiveness, you must register your federal student loans in a income-based student loan repayment plan. This is also very important and many borrowers overlook this crucial step. You must make the majority of your federal student loan payments while you are enrolled in an income-driven repayment plan. Don’t show up in ninth grade and suddenly decide you need to enroll in an income-driven repayment plan.
You haven’t finished yet. Each year, you must recertify your income on studentloans.gov. Why? Since your income can change every year, the federal government wants to make sure you still qualify for this income-based student loan repayment plan. How do you know which income-driven student loan repayment plan is best for you? This utility loan waiver calculator shows you which income-driven student loan repayment plan will maximize your student loan forgiveness based on your personal circumstances.
5. Consolidate your student loans, if necessary
Remember that only direct student loans are eligible for the Civil Service Loan Relief. Private student loans are not eligible for student loan forgiveness. Now, if you have Perkins loans, FFEL loans, or borrowed student loans before 2011, you may need to consolidate those federal student loans into a direct consolidation loan.
What kind of student loans do you have? To verify Federal Student Aid. If you don’t see the word “Direct” next to your student loans, you may need to consolidate those student loans. How to consolidate student loans? For consolidate student loansgo to StudentLoans.gov. Student loan consolidation is needed here to convert non-direct student loans into direct student loans. Importantly, student loan consolidation is different from student loan refinancewhich will lower your interest rate and help you repay student loans faster. Even if you apply for student loan forgiveness for your federal student loans, you can still refinance private student loans.