Student loans

Federal Student Loans May Be Forfeited for Public Servants Who Meet These Criteria | News

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the Public Service Student Loan Forgiveness Program (PSLF) provides loan forgiveness to individuals who work for a federal, state, local, or tribal government or nonprofit organization.

Eligible debtors can have their loan forgiven after 120 monthly payments have been made while working full-time for a qualified employer.

Qualifications include:

  • Employed by the U.S. federal (including military), state, local, or tribal government or nonprofit organization
  • Full-time employment status
  • Direct loans (or other federal loans consolidated into a direct loan)
  • 120 qualifying payments made

Typically, the qualifications also require repayment to be made under an income-driven repayment plan. Thanks to the PSLF waiver, the requirement was waived until October.

Every year, or when you change employers, file a Public Service Loan Remission and Temporary Expanded PSLF Application and Certification Form. The information provided is used to track eligible payments.

Payments suspended due to COVID-19 will not count toward qualifying payments. Instead, debtors will receive credit through the hold as if they had paid through a qualifying plan.

Once all the conditions are met, the student loan balance can be canceled.