A lot of the questions I’ve been getting lately are should I be concerned about Public Service Loan Forgiveness (PSLF)?
Recently PSLF, Public Service Loan Forgiveness, has been in the headlines:
Should I be panicking or stay calm if I’m currently planning for PSLF?
I would argue the latter. Why?
Let’s read beyond the actual headlines and break down the 99% number:
We could stop the conversation right there as 98% of the applicants either 1.) Did not follow the rules properly and 2.) Did not fully complete the application.
First, let’s understand what it means to be eligible for PSLF:
4 requirements are all it takes. One of the quotes from the Marketwatch article was “Many who watch PSLF closely have been concerned for years that its complicated mix of requirements would make it difficult for borrowers to access.” I don’t really agree with that.
But I do see where they are coming from so let me explain why most people were ineligible.
When you take into consideration that we are just now seeing data from 2018, exactly 10 years after the program came about, it’s not surprising that 99% of applications were denied. I believe now that more people are educated about the program we will see those numbers rise over the years.
If you are still worried about the program that’s understandable. It’s a lot of money on the line and could be costly if you make a mistake.
If you are concerned about the program, not sure whether you’d be better off refinancing vs planning for PSLF feel free to schedule a call with us here. We charge $395.00 – $695.00 for a specialized financial plan that will focus on a student loan analysis.
North Star Consultants - Celebrating over 110 years of business
Jackie Fuller - Practice Assistant
North Star Consultants Texas, Inc. - Insurance Products and Services | CRI Securities, LLC - Securities and Investments | Securian Financial Services, Inc. - Variable Products and Securities | North Star Consultants of Texas offers securities and investments through CRI Securities, LLC and Securian Financial Services, Inc., Members FINRA/SIPC. | CRI Securities, LLC is affiliated North Star Consultants of Texas and Securian Financial Services, Inc. Securian Financial Services, Inc. operates under separate ownership from North Star Consultants Texas and North Star Consultants Texas, Inc. North Star Consultants Texas, Inc. doing business as North Star Consultants of Texas in the state of Texas.
Financial Advisors do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation. 2412983/DOFU 2-2019
1Forbes Everyone Calm Down About Rejected Student Loan Forgiveness Applications Preston Cooper Sep 2018