Essential Insights for Public Service Loan Forgiveness Program

Obtaining student loan forgiveness can significantly reduce your financial burden, saving thousands of dollars. If you pursue a career in public service, you may qualify for the Public Service Loan Forgiveness (PSLF) program. Here are key points to understand about PSLF.

• PSLF is a federal program that forgives remaining federal student loans for full-time public service workers who make at least 120 on-time payments, roughly equating to 10 years of consistent payments.
• Only payments made after October 1, 2007, count toward this requirement.

Any payments made before this date do not count toward the required 120.

Borrowers can choose any of the following repayment options to meet the 10-year requirement: standard repayment, Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), or Income-Based Repayment (IBR). Using income-driven repayment plans can enhance eligibility chances by increasing the number of qualifying payments. Eligible direct loans include Federal Direct Subsidized and Unsubsidized Stafford Loans, PLUS Loans for parents, graduate, or professional students, and Federal Direct Consolidation Loans.

Only two loan types qualify: direct loans and Federal Direct Consolidation Loans.

Private student loans, Federal Perkins Loans, or Federal Family Education Loans do not qualify for PSLF.

As long as you work in public service, your employment status with various public agencies during the 10 years will not affect eligibility.

PSLF can forgive up to 100% of your federal student loan balance.