Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program was created to give people in the public service field affordable payments as well as a shorter term with forgiveness over time. If you are working full-time in public service, you may qualify for The Public Service Loan Forgiveness as well as an income sensitive program. Many times, borrowers looking to enroll in The Public Service Loan Forgiveness program are unaware that they are already working for a qualified employer.

If you are enrolled in the program, stay employed full-time in the public service field, and have made 120 payments on your direct loans then your remaining balance that you still owe will be completely forgiven. Only payments made under the qualifying repayment plans may be counted toward the required 120 payments. Some of the repayment plans that can be used in conjunction with (PSLF) program are the Obama Loan forgiveness Program (PAYE), Income Based Reduction Program (IBR), the Teacher Loan Forgiveness Program and the Income Contingent Repayment program. Although qualifying for The Public Service Loan Forgiveness program is based off of the employer, many job types like public school teachers, police officers, nurses, fire fighters and many others qualify for this program.

Borrowers enrolled in The Public Service Loan Forgiveness program that make 120 qualifying payments will receive total forgiveness regardless of the loan amount or how much interest has accrued. A qualifying payment is considered to be any payment such as:

  • while you are employed full-time (30 hours or more per week) by a qualifying employer.
  • after October 1, 2007
  • under a qualifying repayment plan (IBR, PAYE, REPAYE etc.)
  • for the full amount due as shown on your bill
  • no later than 15 days after your due date

Qualifying payments do not need to be made consecutively and paying more than the full amount due will not help a borrower receive forgiveness sooner. Paying only the amount required actually gives a borrower the best opportunity to receive the maximum amount of forgiveness at the end of the term.

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