Public Service Loan Forgiveness

What is Public Service Loan Forgiveness?

PSLF-pic-ccPublic Service Loan Forgiveness or the PSLF is an amazing program that benefits millions of borrowers throughout the country.

If you are a borrower currently employed at a 5019(c)(3) job or are a government employee, this program can help save you thousands of dollars on your loan and even lower your student loan payments.

Why is it so beneficial?

Under the Public Service Loan Forgiveness program, eligible borrowers can have their federal student loans forgiven after ten years. Also, there are no limits on the loan amount that can be forgiven and the forgiven balance is not considered taxable income.

Employment that qualifies for this program is employment with a federal, state or local government agency, entity or organization. Borrowers employed through a non-profit organization with a tax-exempt designation by the IRS as a Section 502(C)(3)qualifies as well. The types of employment gained through these government agencies or non-profit organization do not matter for the Public Student Loan Forgiveness programs. Private non-profit employers that are not tax-exempt under section 501 (c)(3) of the IRS may still qualify if the services offered by the private non-profit provides certain public services.

What types of Loans Qualify?

Private loans do not qualify for this program. Federal loans that are in default do not qualify as well. The only loan types that qualify is:

Federal Direct Subsidized and Unsubsidized loan
Direct Consolidated Loans
Direct PLUS
Direct Stafford Subsidized and Unsubsidized loans

It is important that you make 120 payments that count towards your forgiveness programs. The quantity payments do not have to be consecutive. The loans can’t be under current default. It is important that you make your payments on time. Payments that have been made in a lump sum or paid in advanced for future months do not count as qualified payments.

Be employed by a qualifying public service organization at the time of payment. Borrowers must meet their employer’s definition of working full-time. It must be a minimum of 30 hours of work per week. For teachers and other public service employees that work under a contract, you still must meet the standard of 30 hours minimum per week during your contractual period. If borrowers worked in two separate public sector job or non-profit job, you could still meet the requirement if the combined hours of the jobs meet 30 hours per week.

To improve your chances of securing this program, consider consolidating your loans. It can be a great option because it allows you to take more control of your loans and increase the likelihood of making qualified payments. Consolidation is also a good choice for those who may not qualify for the public service loan forgiveness program.

Student Debt Doctor Can Help

Borrowers have a few options to apply for the public service loan forgiveness program. You can begin the process on your own, or you can contact us for guidance. If you would like to understand how Student Debt Doctor can help you prepare your Public Service Loan Forgiveness Package and learn how to begin the process to control your student debt, call us today.

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Disclaimer: This site does not negotiate, adjust or settle debts. All federal student borrowers are able and encouraged to apply for any federal repayment or forgiveness programs through the US Department of Education for free without paying fees to any entity. Nothing on this site constitutes official qualification or guarantee of result. Student Debt Doctor offers fee-based services to assist with application preparation for federal student loan and other programs.
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