At Summer, we aim not only to simplify student debt, but to simplify the paperwork.
Simple errors on PSLF forms often cause forms to be rejected by the loan servicer, which can result in a months-long delay in processing, and ultimately, loan forgiveness. We completely understand that the forms themselves are not user-friendly, but after seeing thousands of them, we hope to help you avoid a few of the recurring causes for rejected forms.
Here are a few of the most common mistakes we see, and how to avoid them to make sure forms are accepted!
Employer Identification Number (EIN): It's important to enter this number correctly so that your employee's qualifying employment is confirmed.
- For most employers: You can use the payroll EIN that is found in Box B of the W-2 and reported to the IRS on Form W-3.
- If you use a Professional Employer Organization (PEO): If you're an employer that uses a PEO for payroll or benefits as your co-employer, do not use the EIN for the PEO - use the EIN for your business (see the bullet above.)
- For contract employees: Most contract employees do not qualify for PSLF, but there is one exception. From Federal Student Aid: "The exception to this is when a contracted employee is filling a position or performing a service that under applicable state law, can’t be filled or provided by a direct employee of your organization. This is most common in states that have laws preventing health care facilities from hiring employees directly, so they contract with physicians’ groups to provide services. If this is the case, the contracted employee should report the EIN of the qualifying employer on their PSLF form (not their direct employer whose EIN appears on their W-2 or 1099) and have that employer certify their employment as an employee filling a position or providing a service that can’t be filled or performed by a direct employee due to state law."
- For more detail on how this applies to physicians in California and Texas specifically, the California Medical Association has a helpful guide.
Signature: Must be a full and complete signature drawn with a mouse or typepad
Dates of employment: Dates must be in MM/DD/YYYY format
Employment Status: Check the "still employed" box for current employees
Hours of employment: Indicate the average hours per week, not a range
Note: For adjunct faculty members who are paid solely for the credit hours taught, full-time employment can be determined by multiplying each credit hour taught per week by at least 3.35. Employers should apply the multiplier to the employee’s credit hours taught and put the full number on the form.
Organization type - Only check one organization type