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General Information
The Public Service Loan Forgiveness (PSLF) program is available only to Direct Loan borrowers. Your loans with KHESLC are Family Federal Education Loan Program (FFELP) loans and do not qualify. If you want to apply for PSLF, you must consolidate your FFELP loans into a Direct Consolidation loan. If you choose to consolidate your loans, any payments made to KHESLC before the loan consolidation will not count towards the 120 qualifying payments that are required for PSLF.
In order to be eligible for PSLF, your Direct Consolidation loan will be set up with a 10 year loan term. This is the only loan term that will allow your loans to be eligible for PSLF. If you consolidate your KHESLC consolidation loan or KHESLC loan currently with an extended loan term, your new payments will be based on a 10 year loan term and may increase. During the 10 year loan term, you must be continuously employed with a qualifying employer and make 120 qualifying payments to be eligible for PSLF. At the end of the 10 years, any unpaid principal may be eligible for forgiveness.
Parent Plus loans, private alternative loans and Consolidation loans that include Parent Plus loans are not eligible for PSLF. Payments made prior to your Direct Consolidation loan do not count toward the 10 years of qualifying payments (120 payments).
For more information about PSLF, please contact the Department of Education at 1-855-265-4038.
You may also be eligible for the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) opportunity. For additional information regarding TEPSLF, visit studentaid.ed.gov.
If you have high loan balance and low income, you may be eligible for the Income Based Repayment plan.
Temporary Opportunity from October 6, 2021 to October 31, 2022.
On Oct. 6, 2021, the U.S. Department of Education announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for PSLF or TEPSLF.
Public Service Loan Forgiveness (PSLF)
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program. The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Learn more to see whether you might qualify.
Temporary Expanded Public Service Loan Forgiveness (TEPSLF)
If your PSLF application was denied because some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity. Learn more
Tax Implications if Your Loans are Forgiven
Beginning January 1, 2021, amounts forgiven under the PSLF Program are not considered income by the Internal Revenue Service. Therefore, you will not have to pay federal income tax on the amount of your Direct Loans that is forgiven. The discharged loan amount may be considered income for state tax purposes. You may want to consult with your state tax office or a tax professional before you file your state tax return.
Spouse Student Loan Information:
If your spouse has federal loans outside of KHESLC, we must have their loan information before we can process your IBR application.
Have your spouse complete and return the Income Based Repayment Spousal worksheet.
The Teacher Loan Forgiveness is for teachers who have taught full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, may be eligible for up to $17,500 of loan forgiveness on your Family Federal Education Loan Program (FFELP) loans and Direct Loans.
The maximum forgiveness amount is either $17,500 or $5000, depending on the subject area taught. If you have eligible loans under both the FFELP and Direct Loans programs, $17,500 or $5000 is a combined maximum forgiveness amount for both programs.
Eligible Loans:
- Stafford (FFELP or Direct)
- Federal Consolidation Loan (outstanding portion of the consolidation loan that repaid and eligible Stafford loan)
- Spousal Consolidation Loans
Ineligible Loans:
- Parent PLUS
- Consolidation Loans including Parent PLUS loans
- Private student loans, state loans or other loans not guaranteed by the federal government
- Defaulted Loans
Eligibility Requirements:
- Must not have had an outstanding balance on any FFELP or Direct loans as of 10/1/98 or have new loans before a pre-October 1, 1998 loan is paid off.
- Must have been employed as a full time, highly qualified teacher for five complete and consecutive academic years, and at least one of those years must have been after the 1997-98 academic year.
- Must have been employed at an elementary school, secondary school, or educational service agency that serves low-income students.
- The loan(s) must have been made before the end of your five academic years of qualifying teaching service.
Forgiveness Amounts:
You may receive up to $17,500 in loan forgiveness if
- You are a highly qualified full-time mathematics or science teacher who taught students at the secondary school level; or
- You are a highly qualified special education teacher (at either the elementary or secondary level) whose primary responsibility was to provide special education to children with disabilities, and you taught children with disabilities that corresponded to your area of special education training and demonstrated knowledge and teaching skills in the content areas of the curriculum that you taught.
You may receive up to $5000 in loan forgiveness if
- Your qualifying teaching service began before 10/30/04.
- You are a highly qualified full-time elementary or secondary education teacher.
You may verify your school’s eligibility on the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits (TCLI Directory) at https://studentloans.gov/myDirectLoan/tcli.action.
For additional information regarding Teacher Loan Forgiveness, visit studentaid.ed.gov.
Apply for Teacher Loan Forgiveness.If you are totally and permanently disabled, you may qualify for a total and permanent disability (TPD) discharge of your federal student loans. Once approved for TPD discharge, you will no longer be required to repay your federal student loans.
If you believe you might qualify for TPD, you must apply for a TPD discharge with the Department of Education. You will be required to provide the information requested in order for a disability determination to be made.
For more information regarding TPD discharge, go to disabilitydischarge.com.
