WASHINGTON—The CFPB has introduced “Certify Your Service,” a consumer education campaign to empower student loan borrowers working in public service to protect their progress toward loan forgiveness.
The campaign is part of a CFPB report spotlighting complaints from borrowers about student loan servicers mishandling Public Service Loan Forgiveness.
Certify Your Service includes guides developed specifically for first responders and teachers about what programs are available, which ones are best for each individual’s circumstance, and how to get on the path to loan forgiveness. The Bureau is also updating its tools for employers to help their employees get started in the Public Service Loan Forgiveness program, and tips for helping employees stay on track.
According to the CFPB, public service employees aiming for Public Service Loan Forgiveness should:
- Make sure they have the right type of loans: Only federal Direct Loans qualify for loan forgiveness under the Public Service Loan Forgiveness program. A borrower with another type of federal loan may be able to consolidate it into a Direct Consolidation Loan to become eligible for Public Service Loan Forgiveness.
- Enroll in the right repayment plan: Income-driven repayment plans set the payment based on a borrower’s income, which may lower the monthly payment and maximize the amount forgiven. Some repayment plans, like extended repayment plans, don’t count toward Public Service Loan Forgiveness.
- Certify that the work is in public service: Borrowers should submit an Employer Certification Form to track the progress of payments and to let the servicer know that they are working toward Public Service Loan Forgiveness. Employers can choose to provide this form to employees through their human relations office, or can find more information at consumerfinance.gov/pledge.
- Stay on track: Borrowers should keep copies of the completed form for their records and follow up with their servicer after they submit the form. Borrowers should also submit updated forms each year and each time they change employers to keep track of qualifying payments.
Student loan borrowers experiencing problems related to repaying student loans, including the problems identified in today’s report, can also submit a complaint to the CFPB.
More information on CFPB consumer guides and tips for loan forgiveness will be available at: https://www.consumerfinance.gov/about-us/blog/guides-public-service-loan-forgiveness/