Learn the essentials of the Public Service Loan Forgiveness (PSLF) program, including eligibility, qualifying payments, and eligible loans. Discover how public service workers can benefit from debt forgiveness after completing 120 required payments, potentially saving thousands of dollars. Understand the qualifying repayment plans and employment conditions necessary for federal student loan forgiveness through PSLF.

Key Facts About Federal Public Service Loan Forgiveness Program

Reducing student debt through loan forgiveness can lead to substantial financial relief. If you serve in public sector roles, you may be eligible for the Federal Public Service Loan Forgiveness (PSLF) initiative. Here's what you need to know about PSLF.

PSLF is a federal scheme that cancels remaining federal student loans after full-time public service employees complete at least 120 qualifying payments, typically over a span of about 10 years.

Only payments made after October 1, 2007, are applicable.

Any payments prior to this date do not account toward the 120 required.

Borrowers can select various repayment options, including standard repayment, Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), or Income-Based Repayment (IBR), to fulfill the 10-year payment requirement. Income-driven plans can improve qualification odds by increasing consistent payments. Eligible loans for PSLF include Federal Direct Subsidized and Unsubsidized Stafford Loans, PLUS Loans for parents and students, and Federal Direct Consolidation Loans.

Only direct loans and Federal Consolidation Loans qualify for PSLF.

Private loans, Federal Perkins Loans, and Federal Family Education Loans do not qualify.

Your employment in public service during the 10-year period does not affect eligibility, even if working for different public agencies.

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