Public Service Loan Forgiveness Help for Borrowers in the Wrong Plan

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One of the requirements of Public Service Loan Forgiveness is that recipients be in an income-driven repayment plan. However, borrowers who are in repayment plans like graduated or extended may still be able to apply for Public Service Loan Forgiveness, if you can show you’ve been paying more each month than you should under income-driven repayment. $350 million was recently set aside for this “fix” purpose.

Here’s how it works:

  • Verify that you are in a graduated or extended repayment plan by contacting your loan servicer.

  • Take a look at your monthly payment from a year ago.

  • Estimate how much your monthly payment would be under an eligible income-driven repayment plan. (This calculator can help.)

  • If your current payment is more than what it would be under one of the four income-driven repayment plans, you might qualify for additional help.

For questions on accessing this “fix” funding, or Public Service Loan Forgiveness generally, contact Heather Vlieger of LRAP Minnesota at HeatherRV@mnbar.org or 612-278-6315.

Mid-cycle LRAP application materials are currently available at www.lrapmn.org and are due November 1st. Those who applied in May 2018 need not reapply. This application is intended for folks hired after July 1, 2018.

Stay Informed About Public Service Loan Forgiveness (PSLF)

The federal Public Service Loan Forgiveness (PSLF) program is critical to ensuring that low-income Minnesotans continue to have access to dedicated and experienced legal aid attorneys. Concerned that many students would be forced to forgo careers in low-paying but socially valuable careers because of staggering education debt, PSLF was enacted in 2007 to encourage and reward students who enter public service careers. The program provides for discharge of the remaining balance on federal education loans after ten years of qualifying loan payments while working in public service. Learn more about the issues as Congress seeks to reauthorize PSLF at http://www.americanbar.org/advocacy/governmental_legislative_work/loan4giveness.html or by contacting Heather Rastorfer Vlieger, Executive Director of the Loan Repayment Assistance Program of Minnesota, at HeatherRV@statebar.gen.mn.us.