Guide to Temporary Expanded Public Service Loan Forgiveness (TEPSLF)
How payments count toward loan forgiveness with TEPSLF
1What is TEPSLF?
Temporary Expanded Public Service Loan Forgiveness (TEPSLF) counts payments made under repayment plans that don't qualify for regular Public Service Loan Forgiveness (PSLF). This is a significant opportunity for borrowers nearing the 120-payment threshold.
2Origins of TEPSLF
TEPSLF was created by Congress in 2018. With only 2% of PSLF applications approved, it was developed as a solution for borrowers denied due to being on the wrong repayment plan.
3Who is Eligible?
TEPSLF is designed for borrowers with the right loans, the right employer, and 120 payments but on the wrong repayment plan. Eligible repayment plans include Graduated and Extended Repayment Plans.
4The Final 12 Payment Rule
For TEPSLF, the payment made 12 months before applying and the last payment must be at least as much as under an income-driven repayment plan. This rule catches many borrowers.
5Application Process
To apply for TEPSLF, first switch to an income-driven repayment plan. Then, verify your payment amounts to complete your application.
6Switching Repayment Plans
Your final 12 months of payments must be at income-driven repayment plan levels for TEPSLF. Switching your repayment plan is the cleanest solution.
7Verifying Payment Amounts
Verify your payment amounts by consulting your loan servicer or using the Loan Simulator on StudentAid.gov. This reduces the risk of your application being denied.
8Reasons for Application Denial
Many borrowers see their applications denied because their payment amounts are below income-driven repayment plan levels. Carefully check your payment amounts.
9Future of TEPSLF
TEPSLF is funded with a limited budget and awarded on a first-come, first-served basis. If you think you qualify, don't delay your application.
10Comparison with PSLF
PSLF only counts payments under income-driven repayment plans, while TEPSLF includes payments under Graduated and Extended Repayment Plans. This is a lifeline for many borrowers.
11Importance of TEPSLF
TEPSLF offers a significant opportunity for borrowers stuck on the wrong repayment plans. This program can be a crucial step toward loan forgiveness.
12Conclusion
TEPSLF is an essential tool for achieving loan forgiveness. However, there are rules and requirements to heed during the application process. This guide covers all the details you need to know when applying for TEPSLF.
Original article: The College Investor — Geçici Genişletilmiş Kamu Hizmeti Kredisi Affı Rehberi