Do Stafford Loans Qualify for PSLF? Yes, Here’s How (2024)

FAQs

Do Stafford Loans Qualify for PSLF? Yes, Here’s How? ›

The loans were made under the now-defunct Federal Family Education Loan Program. There are two types of Stafford Loans: Subsidized and Unsubsidized Loans. Both types of Stafford Loans qualify for PSLF, but you'll need to consolidate them into a Direct Consolidation Loan before they can be forgiven.

Only Federal Direct Loans are eligible for PSLF. These can be Direct Stafford, Direct Graduate Plus, Direct Parent Plus and Direct Consolidation loans. If you must consolidate to gain access to PSLF, do so as soon as possible.

Do you need to consolidate student loans for PSLF? PSLF consolidation is only required in order to make your federal student loans eligible for an income-driven repayment plan.

Only Direct Loan Program loans that are not in default are eligible for PSLF and TEPSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF.

Additionally, you are eligible for the SAVE Plan if you consolidated a loan from the Federal Family Education Loan (FFEL) Program, including Subsidized and Unsubsidized Federal Stafford Loans, FFEL Plus Loans for graduate or professional study, FFEL Consolidated Loans that did not repay parents' PLUS loans, and Federal ...

Stafford Loans qualify for PSLF, but not automatically. They must be consolidated into a Direct Loan before being eligible for forgiveness.

Stafford loans are a type of federal student loan that are either subsidized, meaning the government pays the interest while you're in school, or unsubsidized, meaning you pay all the interest. Stafford loans are a type of loan issued under the Federal Family Education Loan Program (FFELP).

Only Federal Direct Loan Program loans that are not in default are eligible for PSLF (ie - Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, Direct Consolidation Loans).

Your loans should automatically qualify for forgiveness after you've spent 20 or 25 years in repayment. Reach out to your loan servicer about any steps you may need to take.

What will happen if my Public Service Loan Forgiveness (PSLF) application is denied? If we determine that you're not eligible for loan forgiveness at this time, you'll be notified and will be provided with the reason(s) we determined you were ineligible. You'll then be required to resume making payments on your loans.

Is a Stafford a grant? ›

When financing their education, Stafford loans are usually the first choice of American students. These are fixed-rate student loans for college and university students to supplement personal and family resources, scholarships, grants, and work-study.

Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students.

You'll also be eligible for student loan forgiveness on any remaining balance after the repayment period ends. This is usually after 20–25 years. Both direct subsidized and unsubsidized loans are eligible for any of the four IDR plans.

Which loans are eligible for loan forgiveness? Only Federal Direct Loan Program loans that are not in default are eligible for PSLF (ie - Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, Direct Consolidation Loans).

All Stafford, PLUS, and Consolidation Loans made under either the Direct Loan or FFEL Program are eligible for repayment under IBR, EXCEPT loans that are currently in default, parent PLUS Loans (PLUS Loans that were made to parent borrowers), or Consolidation Loans that repaid parent PLUS Loans.

Yes. Any month when your scheduled payment under an income-driven repayment plan is $0 will count toward PSLF if you also are employed full-time by a qualifying employer during that month.

Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students.