Equitable, a leading financial services organization and principal franchise of Equitable Holdings Inc. announced a free tool to help employees in the non-profit fields determine their eligibility for the Dept. of Education’s Public Service Loan Forgiveness (PSLF) program. The new tool is among several expanded services to help individuals in the non-profit sector manage student loan repayments ahead of the expected end to federal forbearance on May 1, 2022.
The new eligibility tool was created in conjunction with StudentLoan Tech, a firm focused on helping student loan borrowers access the Public Service Loan Forgiveness program. After using the tool, individuals who qualify for PSLF will see the estimated loan balance that would be forgiven, detailed next steps for applying for forgiveness and information on how they may be able to further increase their savings by enrolling in a retirement plan. Individuals can also choose to connect with an Equitable Advisors financial professional who help can provide additional insights on maximizing their retirement savings.
The burden of student loan debt remains a structural barrier to financial wellness, particularly for those who dedicate their lives to public service. The Public Service Loan Forgiveness program is tremendous benefit for those who qualify, but we recognized the challenges and complexities in navigating the PSFL eligibility and repayment criteria. We are excited to help more educators reduce their student loan debt by offering them a simple process to easily determine their eligibility, quickly enroll, and save more towards their financial goals.”
Jessica Baehr, Head of Group Retirement at Equitable
Nearly half of all educators have taken out loans to pay for their education, and more than half of those educators still have a balance of $58,700, on average, according to research from the National Education Association (NEA). Nearly 33% of all American students now go into debt to pay for college and collectively, students owe nearly $1.6 trillion in student loan debt according to research from the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York, respectively.
The Public Service Loan Forgiveness program offers debt relief to educators and public employees who qualify. Borrowers must work full time in public service, including in a nonprofit organization, the military, public schools, nonprofit hospitals, or government. In addition, borrowers must be enrolled in an income driven repayment plan or the 10-year standard repayment plan. After making 120 qualifying monthly payments, the remaining loan balance is forgiven.
Recent changes to the Public Service Loan Forgiveness program simplified the application process and expanded eligibility enabling more borrowers to qualify including those who were previously turned down for the program.
“Managing student loans can be a daunting process. Although the resumption of payments may feel far away, now is a great time for borrowers to put a plan in place and determine what their payments will be when they are reinstated,” said Randy Lupi, Regional Vice President, Equitable Advisors. “In addition, one of the recent changes to Public Service Loan Forgiveness gives borrowers until October 2022 to potentially receive credit for past loan payments, making now a great time for borrowers to see if they are eligible, correctly enroll and potentially receive forgiveness sooner.”
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc., has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 2.8 million clients across the country.