PVMA Keystone Veterinarian Summer 2020 - 31

payments made under the 10-Year Standard Repayment Plan
also qualify for PSLF, you will have fully paid off your loan within
10 years (i.e., before you can qualify for forgiveness) if you pay
under that plan. Therefore, an income-driven plan is your best
option. Not only will it help you qualify for PSLF, but most people
enrolled in income-driven repayment plans see a reduction in
their monthly payment amount-win-win! You can apply for an
income-driven repayment plan on StudentLoans.gov.
Temporary Expanded Public Service Loan Forgiveness:
You may have a second chance to get Public Service Loan
Forgiveness (PSLF) if your application was denied because you
were on the wrong repayment plan. With the passage of the
Consolidated Appropriations Act, 2018, Congress set aside a
$350 million fund to offer PSLF to borrowers who were denied
for being on the wrong student loan repayment plan. This is
a one-time-only expansion that will only be available until
the funds run out, so it's important to take action early. For
complete eligibility requirement and to learn how to apply, visit
StudentAid.gov/tepslf.
5. Missing your income-driven repayment recertification date
In order to remain eligible for income-driven payments, you
must recertify each year. If you don't, your payment will likely go
up-possibly significantly. Recertify every year at the same time
on StudentLoans.gov. This is a good time to submit an updated
ECF too.
6. Staying on a deferment or forbearance
When you are in deferment or forbearance, you don't get credit
toward the 120 payments you need to qualify for PSLF. Every
month you stay on deferment or forbearance, you're pushing
back your forgiveness date. Here are some tips to help you avoid
this mistake:
* If you want PSLF, you should be on an income-driven
repayment plan. Your payment amount under these
plans should be affordable because it is calculated based
on your income. If it's not affordable, and especially if
you are on the Income-Based Repayment Plan, contact
your servicer to see if you qualify for a different income-

driven plan that will lower your monthly payment even
further. Or, if you've had a drop in income since you last
had your payment calculated, you can recertify your
current income-driven repayment plan early.
*

You can waive periods of deferment-for example, if
you're working full-time for a qualifying employer while
in graduate school, you could consider waiving any inschool deferment that is applied to your loans so you
can start making qualifying payments. Contact your
servicer to waive a deferment.

7. Missing payments
You shouldn't miss loan payments, but it's especially important
if you're working toward PSLF. Your payment won't qualify if it's
more than 15 days late.
8. Not being strategic with early or extra payments
You cannot receive forgiveness any sooner than 10 years-even
if you pay early or extra every month. For PSLF, you must make
120 separate monthly payments-and you can receive credit
for only one payment per month, no matter how much you pay.
If you consistently pay more than you have to, it will reduce the
amount forgiven once you reach the 120 payments necessary.
However, one instance where we've seen borrowers interested
in making additional payments while working toward PSLF
is when they receive an employer-provided student loan
repayment benefit. If your employer does provide these benefits
and you're working toward PSLF, consider inquiring whether the
payment can be broken out monthly, as opposed to being paid
as a lump sum. That way, it covers multiple scheduled monthly
payments and not just one.
About Ever Gonzalez: Evaristo "Ever" Gonzalez, CFP, CLU, RICP is a
Financial Advisor with First Financial Group who works predominantly
with veterinarians. He shares his knowledge with any veterinarian who
is interested in understanding the basics of student loans, repayment
programs, refinancing, consolidating, forgiveness programs, or to learn
all there is to know about student loans. Ever can be reached at ever.
gonzalez@ffgadvisors.com.
Pennsylvania Veterinary Medical Association | 31

http://www.StudentLoans.gov http://www.StudentAid.gov/tepslf http://www.StudentLoans.gov

PVMA Keystone Veterinarian Summer 2020

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