Want student loan forgiveness sooner? This buyback program could be the solution

If you are registered in Public Service Loan Forgiveness Program and were due for debt relief last year or expected to reach the 120-payment mark this year, a new program can help you apply for debt relief while Save stop payment.

PSLF makes student loans available to teachers, nurses, and other public service workers who have made 120 qualifying payments — the equivalent of 10 years — while working in an eligible job. the PSLF Buyback Program Provides the opportunity for eligible borrowers to “roll back” months of nonpayment that did not count toward forgiveness while their loans were in forbearance or deferment.

The buyback option can help some PSLF borrowers get debt relief sooner, but it’s not a shortcut to accelerating your progress toward PSLF, Eileen RubinCorporate Communications Manager at edvisors.com. You’ll need to have 10 years of service and meet other conditions to qualify. If you’re only five years away from your teaching status, for example, you can’t use this program to pay off the remaining five years of payments to get debt relief now.

Here’s how to find out if you qualify for the buyback program and how to apply.

Read more: Student loan borrowers can’t wait to do these six things

What is the PSLF Buyback Program?

The PSLF Buyback Program allows you to buy back some skipped payment months to credit as qualifying payments under PSLF, which can accelerate debt cancellation for a small number of eligible borrowers.

For example, if you are a teacher who has worked 130 months in that role, you have already exceeded the 10 years required to be eligible for public loan forgiveness. But if your student loan is in deferment or forbearance for 15 months, you may have only made 115 months of payments. Typically, this means that you are not yet eligible for forgiveness under the PSLF program.

Under the government’s PSLF buyback program, you can now make a payment (either in a lump sum or through multiple payments) within 90 days to cover the five months needed to meet your obligation and receive debt relief.

How much will you need to recover? It depends on how many months under the 120 goal you are and how much your monthly payment is. If you’re on an income-driven repayment plan, your monthly payment could be as low as $0, Rubin said. But if your monthly payment is $200 and you only make 117 payments, you’ll need to pay $600 to complete the buyback.

After you submit an application requesting a buyback, the government will detail the total amount you must pay for your service within 90 days in order to forgive the remaining balance.

Who is eligible for a PSLF buyback?

There are several requirements to be eligible for a PSLF buyback:

In other words, you can’t request a repo if you have less than 10 years of service, and the repo process doesn’t apply to delinquent loans or loans that have been discharged.

You can check your eligible payments for PSLF at studentaid.gov, the central dashboard for this program. You can view More detailed information about eligibility requirements here.

How do I apply for the PSLF Buyback Program?

here Application steps For PSLF Buyback Program:

1. If you have qualifying unreported periods of employment, submit them using PSLF utility.
2. Wait to review how Modify the payment number Applies to PSLF credit.
3. Confirm the missing pay months you wish to buy back and make sure the eligible hire approves the same months Check out these months).
4. Submit a buyback request through PSLF Revisited.
5. Wait to hear from StudentAid.gov about the final award amount.

Robin warns that the app is a little confusing. “Be patient, but make sure you provide your information,” Robin said.

You can check the status of your application through StudentAid.gov.

Can I apply to buy back PSLF if I am enrolled in custody?

Yes, you can apply to buy back PSLF if you are enrolled in savings on a valuable education plan. the Save the programAn income-driven repayment plan is an eligible type of redemption under the PSLF buyback.

Payments to Save borrowers have been suspended since the summer, so if you’re a PSLF borrower who would have received debt relief in the fall or winter, you’re a prime candidate for the buyback program.

How long will the PSLF buyback program be open?

The PSLF buyback program is currently open, and there is no hard deadline for applications, Rubin said.

However, once you submit your application and learn your buyback amount, you have 90 days to take the buyback to your loan servicer. If you fail to pay the total amount within this time frame, you must start over with a new application.

With a new administration in the White House, the long-term fate of the PSLF buyback program is unclear. Robin recommends spending time now, while the PSLF buyback is still available, to determine if you qualify and submit your application.