Hey smartypants: if you're going for Public service loan forgiveness, are you sure you're doing the right things now, because what you do now does make a big difference to keep more money in your pocket during your payment period.
That is to say now so that you don't have any nasty surprises when you go to apply for Public service loan forgiveness in this video, I'm gon na break down what most people going for pslf should be doing right now, I'm Kate, the money librarian helping you Feel smart about money, please be sure to like and share this video with someone you know who is working for a non-profit and has student loans. This is for educational informational purposes, only talk with a financial professional to find out what is best for you.
First, off what most people should do is pay as little as possible during repayment. Consider this scenario: would you prefer to pay 180 a month towards your student loans for 10 years and then have them forgiven or pay 480 a month every month for 10 years, and then have your student loans forgiven, which would you choose 180 every time Public service Loan forgiveness pslf takes 10 years 120 payments to get no matter what your balance is.
After 10 years, it's going to be forgiven. You won't get a gold star or bonus points or extra credit. If you paid any more, then you have to you'll just feel like you could have used that money for other stuff. That'S why? If you're going for pslf pay as little as possible during your repayment period, those numbers I just mentioned were made up.
Depending on your student loan balance and current income, you will have different payment options. You can find out how much you'd pay on different payment plans. If you go to the loan simulator calculator Link in the description, there are a few different payment plans. That'Ll work for pslf get the one where you pay. The least they are in the process of rolling out a new student loan payment plan, depending on your family size and income.
You may pay as little as zero dollar dollars to half of what you currently pay be sure to subscribe to this channel as I'll be talking about it in detail. Once it's out hey, I have a free student loan forgiveness cheat sheet. That gives you a quick overview of 13 different federal student loan forgiveness programs.
What they are, how to qualify even traps people fall into get that link in the description number two send in that pslf form yearly and many years ago, before I got into this business, I would hear Finance people say send in your pslf form yearly and I'd Be like why you're not getting it for 10 years, so why would you send it in every year? It doesn't make any sense it's because they are trying to confirm 120 of your payments for Public service loan forgiveness.
So if you only send in that application at the very ends, they have to go through a 120 different payments make sure each and every single payment makes or matches all the qualifications that you need to get Public service loan forgiveness and for most people over that Long time period things will have changed, maybe you'll have Consolidated or used different payment plans worked for different organizations went into forbearance.
All kinds of stuff will have changed during that time, and you just don't want to have to go back 10 years to make sure that those old payments qualify by sending in the pslf form every single year. The payments you made during that time. So those 12 payments will be marked as qualifying or not qualifying. Don'T wait, 10 years to send in the form just to find out that eight years ago the loans you had weren't the right type or your employer doesn't actually qualify see.
The thing is just because you work at a non-profit doesn't mean that you work for a non-profit. It is totally possible to work at an non-profit, but not for a non-profit. Whoever signs your checks is the person that you're working for or the organization you are working for, and a lot of non-profit organizations, Outsource, particular jobs to for-profit companies. And if your paycheck comes from a for-profit company, you won't qualify for pslf, and you won't know that unless you actually put in that application, just because you have federal student loans doesn't mean you have the right kind of federal student loans.
Just because you are paying your federal student loans back doesn't mean you are on the right payment plan.
If you're, depending on getting pslf, you need to know that all of these payments you are making are actually qualifying. I know it's one more damn thing to do, and none of us need that, but if you can get your entire student loan balance forgiven, it is worth it so just send in that application, I'll, put Link in the description every single year.
The third thing you should do if you're going to go for Public service loan forgiveness, get your money back. Follow me here. This one is very time sensitive if you've been in qualifying employment during covet for Public service loan forgiveness and your loans are part of the payment pause.
The covet payment student loan payment pause these months qualify for Public service loan forgiveness, whether you're, paying or not. So maybe you've been paying because you want to pay down your loans, but if you're going for pslf, there is no reason to pay down your loans, as I mentioned earlier, just as earlier, when I said, would you rather pay 180 or 480? Well now we have the option of zero dollars and zero, for you to pay is better than any of the other options.
So take it. If you paid your federal student loans back when you didn't have to because of the coveted payment pause, what you want to do is total up how much you paid call your student loan servicer and ask for your money to be reimbursed.
I have another video on how you can do that and more about the reimbursement program future. You will thank you for getting this done now.
The rules are changing so be sure to check out the department of education's website to learn the most recent updates to Public service loan forgiveness like share subscribe, do all the things and please let me know in the comments if you found this useful or have any Other money questions.
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