What is a PSLF buyback program?

The PSLF buyback program allows you to “buy back” missing payments that allow you to qualify for loan waiver.

To qualify for public student loan forgiveness, you must have 120 months qualified payments when employed in a qualifying public service job.

However, if some payments were remembered for specific reasons, and you would otherwise have qualifying for forgiveness, you can now make the retrospective payment with the PSLF buyback program.

Requirements for PSLF buyback program

To qualify for the PSLF buyback program, you must have a qualifying employment of 120 months in the qualifying public service job. You must have one outstanding student loan remaining.

You can buy months back when you were in a position to postpone or refuse, but otherwise eligible for PSLF What you would have paid by paying, if you were in a qualified payment plan, you are equal to what you pay.

As a result of forgiveness under PSLF or TEPSLF, you will have to buy enough months back. The buyback that does not meet the 120 qualifying payment count requirement is not allowed – and you cannot purchase months that are ineligible for credits towards PSLF.

You must have been in a state of repayment during the months to be purchased back. You cannot be in the in-school or grace period, in default or bankruptcy, or in the total and permanent disability monitoring period.

Only months can be purchased back in a direct loan program. FFELP loans are not eligible until the federal direct consolidation is consolidated in the loan. You cannot buy months before consolidation, and the time period before October 1, 2007, when the PSLF program begins, do not count.

Here is a quick guide that PSLF vs. What period and payment is counted for PSLF buyback:

Buyback payment amount

The buyback payment will be based on the lowest income-operated repayment monthly payment (or standard repayment, if low), which will be postponed or during the time of prohibition.

If you were in an income-manual repayment scheme during Deframent or Forbeeration, the amount of retroactive payments will be based on the bottom of two monthly payments before or after the period.

If you were not in the income-operated repayment scheme, you will need to provide a copy of your federal income tax return for each tax year during the relevant time period. (If you did not need to file a federal income tax return, you have to provide a statement to this effect.) You also have to provide a statement listing your family size during each relevant time period.

The lowest calculated income-driven repayment payment amount will be applied to the PSLF buyback program based on tax returns during the Deferment or ForbeARANCE period. Otherwise, monthly payment of standard 10-year repayment scheme will be applicable, if it is low.

If you were eligible for a zero monthly payment, no payment would be necessary for those months under the PSLF buyback program, during which you had qualified for zero monthly payment. This can happen when your income during the pre -tax year was below a certain several poverty line.

For Parent Plus Loan, the PSLF buyback program amount will be the standard 10-year-year repayment scheme until the Parent Plus loan is not in a federal direct consolidation loan, in which case the income-transport repayment (ICR) scheme payment amount will be used if this is less than the standard repayment amount. Note that parent plus loans are eligible for PSLF, but not TEPSLF.

How to apply for PSLF buyback program

To apply for the PSLF buyback program, you should submit a PSLF reconsideration application.

The new online reconsideration application no longer needs you to input a specific phrase. You can just choose “PSLF buyback request “As a reason for your application.

It is necessary that the counting of your qualification payment is right for this. If you are doing the issue of payment count, first choose “Wrong qualification payment calculation“And specify the beginning and end of the time period to reconsider. If there are many time periods, you should specify the beginning of the initial time period and the end of the latest time period.

Once your payment count is corrected, you can request PSLF buyback.

If you are eligible for PSLF buyback program, you will get a PSLF buyback agreement to pay the specified months as part of the buyback. This will specify the total buyback amount and you have to pay the amount within 90 days of the approval date on the agreement.

Until the buyback is approved, you should continue to pay the loan and you have paid the buyback. If the payment is more than the amount specified in the PSLF buyback agreement, the additional payment will be returned to the borrower, assuming that the borrower has no other outstanding federal student loan.

For more information, you can see the US Education Department.

other options

Possibly an IDR buyback program (34 CFR 685.209, 88 FR 43820) that is similar to the PSLF buyback program (34 CFR 685.219, 87 FR 65904), but the months that can be purchased back will be separated.

If you do not have 120 months qualification employment, you are not eligible for PSLF buyback program, but you can pay a lump sum to prepap for up to 12 months of future PSLF payment, until your next income-run repayment plan certification date. Once you have certified your qualified employment with a qualified employer during a 12 -month period, these payments will be counted towards PSLF forgiveness. Certification of eligibility employment cannot be done in advance.

The US Department of Education also publishes a list of other student loan waiver programs on the student of education. Gov/Forgiveness. We have a complete list of loan forgiveness programs here.

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