See if you qualify for a civil service loan forgiveness with this tool

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Image of the article titled See If You Qualify For A Public Service Loan Remission With This Tool

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As the election approaches, the cancellation of student loans has become a popular topic. While some politicians have proposed student loan forgiveness, the current Public Service Loan forgiveness program (PSLF) has experienced some difficulties.

Recently, the Ministry of Education published new data for its PSLF program – and the numbers still look grim. According to the latest report, only 2.37% of applicants were eligible for the PSLF. Since 2018, the program is under fire for high rejection rates.

One of the reasons for the refusals is the strict criteria of the program. Borrowers must meet the following conditions to qualify for PSLF:

To make sure you are on the right track, you can submit the Renunciation of the civil service loan: employment certificate form every year or when you change jobs. But unfortunately, many borrowers don’t know if their job qualifies.

One of the most common reasons for rejection – 24% of applications, according to the latest report – is lack of information. This is the missing employment certification from the borrower. Fortunately, the PSLF Help Tool has a new feature which can make the process easier.

Last month, the Ministry of Education announced an upgrade to the PSLF help tool. The update includes an employer search function. You can now use your company’s Federal Employer Identification Number (FEIN or EIN) and employment dates to see if your work qualifies.

The system will provide one of three statuses: eligible, ineligible or probably ineligible for the PSLF. “Likely ineligible” means the employer is tax exempt but not a 501 (c) organization. This may mean that the ministry has yet to decide if your organization is eligible, but according to the website, you shouldn’t be counting on it.

This new update makes it easier to see if your work qualifies and may prevent you from submitting ineligible forms. The ministry says it will continue to monitor and update the database.

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