- Borrowers who reach 120 eligible payments under PSLF may see a green banner on StudentAid.gov confirming they meet the program requirements.
- Final forgiveness is not official until the loan servicer issues what borrowers call a “golden letter.”
- These terms are widely used online, but are informal and not officially defined by the Department of Education.
For federal student loan borrowers seeking Public Service Loan Forgiveness (PSLF), reaching 120 qualifying payments is a major milestone. But this achievement can be confusing, especially since signs of progress come with the unofficial labels that borrowers have come to rely on: green signs and gold letters.
It’s especially frustrating because loan forgiveness doesn’t happen automatically when you reach 120 payments. Instead, your loan servicer has a process that requires the Department of Education to verify everything, which can take weeks to months.
The green sign says:Congratulations, you have fulfilled your PSLF obligation and do not have to make additional payments on this loan.But the appearance of that sign does not automatically mean that the loans have been forgiven, but rather indicates eligibility, not forgiveness.
Only when you get the “Golden Letter,” the official discharge notice, will your loans be officially forgiven.
Understand the green flag
A green banner on the Federal Student Aid website is an early confirmation that a borrower’s account reflects 120 eligible payments.
This logo typically shows a “120/120” tracker and often appears after the borrower receives an email indicating that their PSLF tracking information has been updated. some Borrowers on Reddit They reported delays between receiving the email and seeing the logo appear, ranging from a few days to more than a week.
Here is an example of a green logo notice:
However, the sign only confirms that the borrower is eligible for forgiveness of their loan balance. It is not a formal discharge notice, and the balance will remain visible in the borrower’s account until additional steps are completed.
Before you reach forgiveness, your PSLF tracker will typically look like this:
From Green to Gold: Obtaining the “Golden Letter”
Once the Department of Education confirms eligibility, the loan servicer (MOHELA) will issue a letter officially stating that the borrower’s loans have been forgiven. Borrowers called this the “golden letter.”
It’s a three-step process:
- Green flag
- Notice of Pre-Remission or Pending Status
- The golden message from the servant.
Some confusion has arisen because borrowers may receive previous notices that appear official but do not confirm that the balance has dropped to zero. Until you get your final confirmation that your balance is zero, it’s not official yet. Remember our map of how the Department of Education and loan providers work.
The first message is a correspondence that says:
“Thank you for your public service. As of the date of this letter, we have determined that you are eligible for Public Service Loan Forgiveness (PSLF) or Temporary Extended PSLF (TEPSLF) on one or more of your loans.”
According to borrower reports, this message usually arrives a few days to a few weeks after the green sign appears, although timelines vary. Some waited months.
After a week or so, you will get the “Golden Letter”. The letter is officially called a “Notice of Forgiveness Eligibility” and confirms that the entire loan balance has been repaid under PSLF. Here’s an older example:
Until the golden message arrives, your automatic loan and debt balances remain active. However, since the balance is zero, this shouldn’t affect much.
You can also check your StudentAid accounts for the message. It can be found by navigating -> My Activity -> PSLF -> PSLF Messaging.
What borrowers should pay attention to
The green flag is an encouraging sign, but it should be considered a first step. Borrowers should keep checking StudentAid.gov Account and loan service dashboard for updates.
It is important to keep copies of employment certificates, pay history, and all correspondence. While the process is improving, delays and problems remain. Additionally, you want to be able to justify everything if you need to prove it.
Finally, once you receive your golden message, keep it forever. Make a scanned copy, save it online, and be careful with that record. It’s your proof that you are finally student loan debt free.
Frequently asked questions
What does the green sign do? StudentAid.gov He means?
A green logo means you have completed 120 qualifying payments according to your loan servicing history.
What should I do after seeing the green flag?
No action is required. Just wait until you get your golden letter, or loan discharge confirmation.
How long after the green banner appears will I get my gold message?
You should receive your golden message anywhere from 7 days to several months.
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