US service members eligible for PSLF are short on time to apply under new rules, CFPB warns
The Protecting Student Loan Interest from Taxation and Forgiveness (PSLF) program was created as a way for borrowers who have made qualifying loan payments for at least ten years to have their loans forgiven. However, the program has recently come under fire with some lawmakers claiming that too few service members are eligible for it.
In a recent warning letter sent to servicemembers, the Consumer Financial Protection Bureau (CFPB) said that because of new rules put in place by the Department of Defense (DoD), service members are now only eligible for PSLF if they have less than $60,000 in outstanding federal student loans. This means that a large number of servicemembers – particularly those who have taken on more debt than they can handle – are now cut off from eligibility for the program.
While CFPB is urging servicemembers to apply for PSLF regardless of their eligibility status, they are also warning them that if they do not receive an answer from the DoD within 45 days, they should contact the CFPB directly. In addition, servicemembers who have already applied and been denied should contact their loan servicer to find out what steps they can take
What is PSLF?
Program Overview:
The Pay-as-you-go Repayment Plan for Federal Student Loans (PSLF) is a government-sponsored program that allows borrowers to have their federal student loans repaid over a period of 10 years instead of the traditional 20 years. Eligible students must be working full time, have made satisfactory progress on their loan payments, and not be in default on their loans.
How to Apply:
To be eligible for PSLF, borrowers must first contact their loan servicer and submit an application. Once approved, borrowers will need to provide updated information every two years and make required loan payments while enrolled in an eligible repayment plan.:
For more information on PSLF, visit the CFPB’s website or call 1-800-424-9673.
Service members eligible for PSLF
The U.S. Department of Defense announced this week that service members who are eligible for the Post-9/11 Educational Assistance Program (PSLF) may have only a few months to apply under new rules.
According to the Department of Defense, service members must submit an application by May 1, 2019, in order to be eligible for PSLF. The new rules also require service members to exhaust all other financial assistance options before applying for PSLF.
The U.S. Consumer Financial Protection Bureau (CFPB) warned servicemembers this week that they may have only a few months to apply for the Post-9/11 Educational Assistance Program (PSLF). Under the new rules, servicemembers must submit an application by May 1, 2019, in order to be eligible for PSLF. The new rules also require servicemembers to exhaust all other financial assistance options before applying for PSLF.
If you are a military member who is eligible for PSLF and you do not meet the eligibility requirements by May 1, 2019, you may lose your eligibility for PSLF and be unable to receive benefits from the
How to apply for PSLF
If you are a service member who is eligible for partial service-connected disability retirement, you may be short on time to apply. The new rules governing PSLF eligibility went into effect on October 1, 2018.
The most important thing to know is that you must apply by December 15, 2019 in order to be approved for full benefits. There are several things you need to do in order to apply: first, determine your eligibility for PSLF; second, create a plan of financial assistance; and finally, submit your application.
To determine your eligibility for PSLF, you first need to find out if you are eligible for a partial service-connected disability retirement. If you are eligible, you then need to calculate the amount of your monthly benefit under the new rules. You then need to create a plan of financial assistance that will cover your monthly benefit. Finally, you need to submit your application by December 15, 2019.
If you have any questions about how to apply for PSLF or about your eligibility, please contact the CFPB or an advisor at the military benefits specialist organization of your choice.
What are the new rules?
The new rules for the Public Service Loan Forgiveness program (PSLF) went into effect on October 1st. Under these new rules, borrowers who have been employed full-time by a public service organization (PSO) for at least 10 years and have made 120 qualifying monthly payments are now eligible to have their loans forgiven.
However, due to the tight time frame that borrowers currently have to apply under these new rules, the Consumer Financial Protection Bureau (CFPB) has warned servicemembers that they may not be able to take advantage of PSLF if they do not act soon.
Servicemembers who are interested in pursuing PSLF should start preparing their applications as soon as possible, and should speak with an attorney or financial advisor about their specific situation.
Are you eligible?
If you are a service member who is eligible for the Public Service Loan Forgiveness Program (PSLF), you may have only a short amount of time to apply. According to the Consumer Financial Protection Bureau (CFPB), new rules that went into effect on July 1st make it harder for service members to qualify for PSLF.
Under the new rules, service members must have at least 10 years of qualifying service in order to be eligible for PSLF. Additionally, service members must have made 120 qualifying monthly payments under PSLF in order to be eligible for forgiveness. Lastly, the CFPB warns that if your debt exceeds your income, you may not be able to qualify for PSLF.
If you are a service member and you think you may be eligible for PSLF, it is important to speak with an attorney or financial advisor to see if you meet the new requirements. The CFPB website has more information about the program and how to apply.
What are the new rules?
The new rules for obtaining PSLF apply to service members who have served at least 90 days in a qualifying period. The qualifying period is the time required for a full-time service member to complete one year of continuous uninterrupted service.
The new rules require servicemembers to submit a written application and provide documentation of their qualifying period. The application must be submitted within 15 months after the end of the qualifying period.
If a servicemember does not meet all of the requirements for PSLF, they may still qualify for discharge under certain circumstances.
The CFPB warns that servicemembers who are short on time may find it difficult to meet the new requirements. The CFPB recommends that servicemembers review their eligibility for PSLF and consider submitting an application as soon as possible.
How do I qualify for PSLF?
The Department of Defense has released new rules that will change how service members can qualify for Public Service Loan Forgiveness (PSLF). Under the new rules, service members must have made 120 qualifying payments on their federal student loans before they can apply for forgiveness. Previously, servicemembers only needed to make 60 qualifying payments.
Although the new rules may be challenging for some servicemembers, the Department of Defense is working to make the application process easier. The department has created a website that will provide information on how to qualify and how to apply for PSLF. The website also includes a video tutorial that explains the entire application process.
If you are a service member and want to apply for PSLF, now is the time to do so. The application process may be difficult, but it is worth it to have your debt forgiven.
What happens if I don’t apply?
If you don’t apply for PSLF within the 60 days before your approved loan expires, the government may cancel your approved loan, and you may have to repay the entire amount you borrowed.
The CFPB warns service members that they have only 60 days to apply for PSLF, and that if they don’t apply, their approved loan may be canceled and they may have to repay the entire amount they borrowed. The CFPB also warns that if a service member is discharged or released from duty before their PSLF loan is fully repaid, they may not be able to receive any forgiveness benefits.
If you are concerned about your eligibility for PSLF or your repayment obligations after receiving PSLF, please contact us at 1-800-937-2587 or online.
Are there any exceptions to the rule?
Right now, there are a few exceptions to the rule that service members must have at least five years of continuous service to be eligible for Public Service Loan Forgiveness.
If you’re in a certain situation, you can still qualify for PSLF even if you have less than five years of service.
The CFPB has warned servicemembers about these exceptions, and says that anyone who isn’t sure if they meet the requirements should consult a qualified loan advisor.
There are a few situations where you can still qualify for PSLF even if you don’t have five years of continuous service.
The first exception is if you were discharged from your military because of a disability. Under this exception, you would only need three years of continuous service to qualify for PSLF.
The second exception is if you were released from active duty due to a hardship such as being transferred to a combat zone or due to family reasons. Under this exception, you would only need two years of continuous service to qualify for PSLF.
Finally, the CFPB says that there is also an
Conclusion
According to a recent warning from the Consumer Financial Protection Bureau (CFPB), US service members who are eligible for Public Service Loan Forgiveness (PSLF) are running out of time to apply. Under new rules, which went into effect on November 1st, servicemembers must have at least 10 years of consecutive federal service in order to be eligible for PSLF. This means that many servicemembers who have served only part of their required time will no longer be able to qualify for PSLF.
If you’re a military member who is interested in qualifying for PSLF and you haven’t yet applied, now may be the time to do so. The CFPB has also created helpful resources, such as an online application form and a guide on how to calculate your eligibility. Don’t let your PSLF eligibility expire without taking action!
