Public Service Loan Forgiveness – Borrowers who have worked in public service, whether at the state, federal, local, non-profit, or tribal government level, for 10 years or more, may be eligible for federal student loan forgiveness.
This means their loans could be fully canceled, and they would no longer need to repay them. Public Service Loan Forgiveness (PSLF) is accessible as long as you meet the qualifications.
PSLF forgives federal student loans for borrowers who work for a qualifying public service employer and make 120 qualifying monthly payments. As long as all requirements are met, you can qualify for this loan forgiveness.
This program provides peace of mind, assuring that after 10 years of payments while working in public service, the remaining loan balance is forgiven.
PSLF specifically applies to student loans, benefiting eligible borrowers. To see if you qualify and if the program is worth it, read on for more details.
Public Service Loan Forgiveness Qualification Requirements
To qualify for this program, first, you must work in an eligible public service. Also, you may qualify for PSLF if your employer offers specific types of qualifying services.
However, note that only Federal Direct Loans are eligible for this program, but you can still qualify by consolidating your federal loans into a Direct Consolidation Loan.
Moreover, it is essential to be enrolled in a qualifying payment plan, with income-driven repayment plans being the best option. This plan is based on your income, allowing you to pay less now and have more of your loan forgiven later.
How To Apply For Public Service Loan Forgiveness
It is very easy to apply for a public service loan forgiveness program. But you first need to make sure you are eligible for this program. If so, follow the below steps to apply:
Confirm Your Loans Are Classified As Direct Loans:
In cases where your loans are not classified as direct loans, you may need to consolidate your loans to qualify.
To do this, visit the studentaid.gov website to determine whether or not your loans are eligible to be consolidated into a new direct loan consolidation.
Apply In An Eligible Payment Plan:
Through the program website, gain more knowledge about the qualifying repayment methods. One of these methods is income-driven repayment plans.
Complete The Public Service Loan Forgiveness Form With Proof Of Your Public Service Employment:
Either by downloading the form or filling it out online, fill in the proper information required and read through the instructions given before submitting the form.
Set A Reminder To Submit An Updated Public Service Loan Forgiveness From Every Year:
Do this to confirm that you are still able to get public service loan forgiveness.
Immediately after the form has been submitted, ensure you are aware of who your student loan servicer is. If you do not have an idea who it is, visit the U.S. Department of Education’s Federal Student Aid website to find out.
What if I Don’t Qualify for Public Service Loan Forgiveness?
There are other options to consider if you do not meet the PSLF program requirements. These options include:
Check Out Other Means To Loan Forgiveness:
PSLF is not the only federal student loan forgiveness program you can get. Although it is the most popular, there are other loan forgiveness programs you can consider. However, ensure you stay vigilant for loan forgiveness scams so you don’t fall victim.
Remain On An Income-Driven Repayment Method:
Through this method, you can lessen your monthly repayment depending on your income. After 20 or 25 years, you may be granted loan forgiveness depending on your loan balance and loan type.
Refinance Your Loan:
Refinancing student loans can help you save and pay off debts quicker if you qualify for a lesser interest rate.
However, immediately after you refinance your federal student loan, you will lose your eligibility for loan forgiveness programs or income-driven repayment. Also, to qualify for this, you are required to have a stable income and good credit.
Bottom Line
Public Service Loan Forgiveness (PSLF) offers a valuable opportunity for those working in public service to have their federal student loans fully forgiven after 10 years of qualifying payments. By ensuring your loans are eligible, following the proper steps, and enrolling in an income-driven repayment plan, you can ease your financial burden and eventually eliminate your loan balance. If you don’t qualify, there are alternative options, including other forgiveness programs, income-driven repayment plans, or loan refinancing to explore.