Temporary Expanded Public Service Loan Forgiveness (TEPSLF)
Definition
TEPSLF stands for the Temporary Expanded Public Service Loan Forgiveness program, an extension of the Public Service Loan Forgiveness (PSLF) program designed to assist borrowers who were previously ineligible for PSLF due to being on a non-qualifying repayment plan.
Detailed Explanation
The Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program was introduced as a remedy for borrowers who made payments under a repayment plan that did not qualify for the original Public Service Loan Forgiveness (PSLF) program.
While PSLF requires you to make 120 qualifying payments under an income-driven repayment plan while working full-time for a qualifying employer, TEPSLF provides leniency for those who made some or all of their payments under a different repayment plan.
To qualify for TEPSLF, borrowers must have made 120 qualifying payments, with the last 12 months of payments being at least as much as they would have paid under an income-driven repayment plan. The program is temporary and subject to funding availability, with applicants required to first apply for and be denied the traditional PSLF before being considered for TEPSLF.
The TEPSLF aims to ensure that public service workers who were misinformed or unaware of the specific requirements of PSLF still have a pathway to loan forgiveness.
Example
A teacher who made 120 payments on their federal student loans while working in a public school applied for PSLF but was denied because some payments were made under a standard repayment plan. The teacher then applied for TEPSLF and, meeting the requirements, had the remaining balance of their loans forgiven.
Key Articles Related To TEPSLF
Related Terms
Public Service Loan Forgiveness (PSLF): A program that forgives the remaining balance on Direct Loans after the borrower has made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Income-Driven Repayment Plan: A repayment plan that bases monthly payments on the borrower's income and family size.
Qualifying Payments: Payments made on a federal student loan that are full, on-time, and made while working for a qualifying employer under a qualifying repayment plan.
Qualifying Employer: An employer that is a government organization, non-profit, or other entities that meet the criteria for PSLF or TEPSLF eligibility.
FAQs
How do I apply for TEPSLF?
First, apply for PSLF and receive a denial due to ineligible payment plans, then submit a TEPSLF request by emailing FedLoan Servicing.
Is TEPSLF available to all federal student loan borrowers?
No, it is specifically for Direct Loan borrowers who have made 120 qualifying payments while working in public service but were on a non-qualifying repayment plan for some or all of those payments.
Does TEPSLF have a deadline or funding limit?
Yes, TEPSLF is temporary and subject to available funding, so it's important to apply as soon as you believe you qualify.
Can payments made under any repayment plan count towards TEPSLF?
Yes, but the last 12 payments must be at least as much as what you would have paid under an income-driven repayment plan.
Editor: Colin Graves
