Introduction to Public Service Loan Forgiveness
Public Service Loan Forgiveness is a federal program that forgives the remaining balance on a borrower's Direct Loans after 120 qualifying payments have been made under a qualifying repayment plan while working full-time for a qualifying employer.
To qualify, borrowers must work for a qualifying public service organization, such as a government agency, non-profit organization, or public school, and make 120 qualifying payments on their Direct Loans.
Qualifying Public Service Jobs
Qualifying public service jobs include those in government, non-profit organizations, and public schools, such as teachers, nurses, and social workers.
Additionally, some private organizations that provide public services, such as hospitals and law enforcement agencies, may also qualify for public service loan forgiveness.
Qualifying Employers
Qualifying employers include government agencies at the federal, state, and local levels, as well as non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
Public schools and some private organizations that provide public services may also qualify as employers for public service loan forgiveness.
Qualifying Payments
To qualify for public service loan forgiveness, borrowers must make 120 qualifying payments on their Direct Loans while working full-time for a qualifying employer.
Qualifying payments include payments made under a qualifying repayment plan, such as an income-driven repayment plan, and must be made after October 1, 2007.
Applying for Public Service Loan Forgiveness
To apply for public service loan forgiveness, borrowers must submit an Employment Certification form to the U.S. Department of Education, which will verify their employment and qualifying payments.
Borrowers must also submit a final application for forgiveness after making 120 qualifying payments, which will be reviewed by the Department of Education to determine eligibility for loan forgiveness.
Frequently Asked Questions
What types of loans qualify for public service loan forgiveness?
Only Direct Loans qualify for public service loan forgiveness, including Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
How do I know if my employer qualifies for public service loan forgiveness?
You can check if your employer qualifies by contacting the U.S. Department of Education or by submitting an Employment Certification form to verify your employer's eligibility.
Can I qualify for public service loan forgiveness if I work part-time?
No, borrowers must work full-time for a qualifying employer to qualify for public service loan forgiveness, which is defined as at least 30 hours per week.
How long does it take to qualify for public service loan forgiveness?
It takes 10 years, or 120 qualifying payments, to qualify for public service loan forgiveness, which must be made while working full-time for a qualifying employer.
Can I qualify for public service loan forgiveness if I have a private student loan?
No, only federal Direct Loans qualify for public service loan forgiveness, and private student loans are not eligible for this program.
What happens to my loan balance after I qualify for public service loan forgiveness?
After qualifying for public service loan forgiveness, the remaining balance on your Direct Loans will be forgiven, and you will not be required to make any further payments on the loan.