Like many borrowers, Mary Carroll trusted that her loan servicer would guide her through the student loan forgivenessprocess correctly. She assumed the company—contracted by the federal government—was ethical, informed, and looking out for her best interest.

Several years later, Mary learned that she had been misled. Despite five years of consistent payments and full-time public service work, none of her efforts counted toward forgiveness. Unfortunately, her story is not unique.

The Truth About Loan Forgiveness

When Mary contacted her loan servicer to ask about federal student loan forgiveness, she was told she needed to:

  • Make on-time payments every month
  • Work full-time in public service for 10 years

That advice sounds accurate—but it was incomplete.

What she wasn’t told:

  • She needed to consolidate her loans into a federal Direct Loan
  • She had to submit employment certification annually
  • Her existing payments did not qualify for the program she thought she was in

What Actually Happened?

After five years, Mary contacted her servicer for a status update. To her shock, she was informed that none of her 60 payments counted toward Public Service Loan Forgiveness (PSLF). Why? Because she didn’t have qualifying Direct Loans.

Now, Mary has to consolidate her loans and restart the 10-year PSLF timeline—wasting five years of payments.

Sadly, this is not an isolated incident. Many borrowers are misinformed or under-informed by their loan servicers, causing delays or outright disqualification from student loan forgiveness programs.

What Is Required for Public Service Loan Forgiveness?

To qualify for PSLF, four key conditions must be met every month for 120 months (10 years):

1. Loan Type

Only Direct Loans qualify. FFEL and Perkins loans do not—unless consolidated.

2. Program Eligibility

You must be enrolled in a qualifying Public Service Loan Forgiveness program or income-driven repayment (IDR)plan.

3. On-Time Payments

Payments must be made within 15 days of the due date each month.

4. Employment Certification

You must work full-time in public service and submit an Employment Certification Form annually with HR verification.

How to Avoid Common Student Loan Forgiveness Mistakes

Relying solely on your loan servicer’s advice is a common and costly mistake. Servicers have been known to give incomplete or incorrect guidance, as lawsuits and news reports have shown.

To protect yourself:

  • Do your own research using studentaid.gov
  • Read articles and updates on forgiveness program changes
  • Keep detailed records of all payments, certifications, and correspondence
  • Double-check eligibility requirements annually

Let Hope Credit Help You Succeed

At Hope Credit, we specialize in helping borrowers successfully navigate federal student loan forgiveness programs. We’ve guided thousands of clients through:

  • Loan consolidation
  • Repayment plan selection
  • PSLF documentation
  • Avoiding common mistakes

If you’re unsure about your eligibility—or want expert guidance—contact us today.

📞 Call for a Free Consultation: (760) 916-9313
🌐 Contact Us Now

Source:
Friedman, Zach. (2018, August 13). This Woman ‘Enrolled’ In Student Loan Forgiveness – And Then Learned This.Forbes