Public Service Loan Forgiveness (PSLF) Program
Rice University is a qualified employer under the federal Public Service Loan Forgiveness (PSLF) program. The federal PSLF is a program that allows certain federal student loans to be forgiven after 10 years of repayment. To benefit, borrowers need to have a qualifying loan and sign up for a qualifying repayment plan. After 120 on-time, qualifying monthly payments, the remainder of the loan(s) is forgiven.
Here are a few things to consider:
- Only federal Direct Loans are eligible for PSLF. One option is to consolidate most other federal loans into a new Direct Loan to qualify. To find out if you have a qualifying loan, or to learn more about the PSLF, visit www.nslds.ed.gov.
- For most borrowers, Income-Based Repayment (IBR) is the best repayment plan, as it allows borrowers to keep their payments low while making progress toward 120 qualifying payments. Although IBR may be the best choice for most borrowers, there may be circumstances where another payment plan is better for an individual employee. To learn more about other options from the U.S. Department of Education, visit www.studentaid.ed.gov/publicservice/.
- Payments made under an extended repayment plan do not count towards the 120 qualifying payments. For example, if you’ve extended repayment over 20 years, your minimum monthly payment will not qualify.
- If you’re a service member or if you have a Perkins loan, you may have access to other benefits. However, consolidating your loans into a new qualifying loan may jeopardize your eligibility. Talk to your servicer about your options before you consolidate. Learn more at www.consumerfinance.gov/pledge.
How do I enroll?
Once you have a qualifying loan and have decided on the best payment plan, you will need to enroll and certify.
- First, you will need to enroll in a qualifying payment plan. To do so, visit www.studentloans.gov.
- Next, you will need to certify that you work for a qualifying employer. Use the Employment Certification for Public Service Loan Forgiveness form to keep track of your eligible employment and qualifying loan payments. Complete sections 1 and 2 on your own, then contact the Human Resources office to complete and sign section 3 before submitting the form.
After the form is complete, submit it to your servicer and be sure to follow up!
Remember, you will save the most if you get started early – you might even be able to lower your monthly payment as you work toward loan forgiveness, so it pays to start now.
Please contact Rice’s Benefits office at firstname.lastname@example.org or 713-348-2363 with any questions.