Employees with federal student loan debt may be eligible for forgiveness

Purdue employees with outstanding federal student loans may be eligible for loan debt relief through the Public Service Loan Forgiveness Program (PSLF). PSLF forgives the remaining balance on federal direct loans after individuals have made 120 qualifying payments while working full time for a qualifying employer like Purdue.

The U.S. Department of Education recently announced a temporary but significant waiver to PSLF Program rules for borrowers who have encountered problems interacting with the program. The waiver, called the Limited PSLF Waiver, allows borrowers who had the wrong type of loans or payments to get credit for those past periods.

Here are the key improvements available under the waiver:

• Borrowers can receive credit for past periods of repayment on loans that would otherwise not qualify for PSLF.
• Individuals who have Federal Family Education Loans (FFEL), Perkins loans, or other federal student loans (not Parent PLUS loans) must first consolidate their student loans into a direct consolidation loan to receive PSLF credit for prior periods or repayment.
• Past periods of repayment will now count, regardless of whether a borrower made a payment, or made that payment on time for the full amount due, or on a qualifying repayment plan.

The waiver is only available to borrowers until Oct. 31. To take advantage of the waiver, individuals must:

• Register for an FSA ID if they do not currently have one.
• Have direct loans (or consolidate other federal loans into a direct loan if needed).
• Submit a PSLF form to certify employment for the time they want credit for through the waiver. Individuals can generate a PSLF form for Purdue to sign at Federal Student Aid. It is important to use the appropriate Purdue University Federal Employer Identification Number (EIN 35-6002041 in the PSLF Help Tool.
• After the PSLF Help Tool provides a PDF, sign and date it and submit to Purdue’s verification vendor, uConfirm, via email at verify.pslf@experian.com or fax to 404-829-1336. Include your first and last name, the last four digits only of your Social Security number, and a return address/fax/email. uConfirm will sign and return the form to the employee to upload as instructed on the Department of Education website. uConfirm questions can be directed to timeadmin@purdue.edu.

There is no specific application for the waiver. Once borrowers have submitted PSLF forms and/or consolidated into the direct loan program, they will be automatically opted in and either receive forgiveness (if they qualify) or an increased qualifying payment count.

This opportunity is time-sensitive as borrowers will need to consolidate their loans and/or submit a PSLF form. Learn more about the Limited PSLF Waiver, or reach out to one of the U.S. Department of Education customer service representatives at 1-800-433-3243. 

Source: David Reseigh, assistant director of outreach services, Purdue University Division of Financial Aid, 765-494-5050, reseigh@purdue.edu