Today on the Student Loan Planner podcast, we will be discussing Public Service Loan Forgiveness (PSLF) and how the approval rate will snowball to a larger percentage in future years.
Only a small number of people were approved for PSLF in the first year of eligibility; I expect the 1% acceptance rate for PSLF is the lowest we will ever see and we should look forward to an increase each year. The media has put out quite a few clickbait headlines on PSLF while sharing plenty of inaccurate information. PSLF became a major story in 2018, but I feel despite the backlash that the program is here to stay.
In today’s episode, you’ll find out:
- The truth about the high rejection rate for PSLF
- Why people were mainly rejected based on these 4 factors:
- Had loans that didn’t qualify.
- Used the wrong repayment plan.
- Failed to include their employer’s EIN tax number.
- Failed to check a box on the form saying they were currently employed by a non-profit.
- Whether there is a massive number of PSLF borrowers coming in the future
- Why many physicians aren’t eligible for PSLF anymore
- PSLF structural flaws that can get ironed out over time
Check out this image from Dept of Education to view the snowball effect in action.
What you think you know about PSLF is wrong. However, don’t worry. This episode will provide you with more clarity on how PSLF works and how to qualify for it.
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