What Loans Qualify for Public Service Loan Forgiveness?

A Public Service Loan Forgiveness (PSLF) qualifying loan is any non-default loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program. To be eligible for PSLF, you must work full-time for a qualified employer or at least 30 hours per week.

Eligible loans

include federal Direct Loan Program and federal loans that were consolidated into a federal consolidation loan.

Private student loans, federal family education loans (FFEL) and federal Perkins loans are not eligible for public service loan forgiveness. The Department of Education also offers student loan forgiveness programs for borrowers who are unable to repay their debt. There you'll see a list of every loan you've borrowed, even if you've canceled or consolidated it into a new loan. The Department will allow months spent on active duty to count towards PSLF, even if the servicemember's loans were based on a deferral or deferral of collection rather than an active payment.

The Department of Education will take action in the coming months to help alleviate student loan debt for thousands of borrowers. Federal Direct Consolidation Loans are available if you have not been able to obtain an FFEL consolidation loan, income-sensitive repayment terms acceptable to you, or if you have defaulted on your FFEL loans. If you haven't already consolidated, you can apply for a federal direct consolidation loan to get a contingent income repayment plan. You can use the PSLF Help Tool on the federal student aid website to find out if you qualify based on the types of loans you have and your employer.

By paying off loans after 10 years of public service, PSLF removes the burden of student debt on public officials, makes it possible for many borrowers to stay in their jobs, and attracts others to work in high-need fields. Many borrowers report discrepancies in their PSLF payment counts, and PHEAA, the student loan servicer responsible for processing PSLF payments, has reached an agreement with the Massachusetts Attorney General to review PSLF applications for possible errors. This limited PSLF exemption will apply to borrowers with Direct Loans, those who have already consolidated into the Direct Loan Program, and those with other types of federal student loans who apply for consolidation in the Direct Loan Program Program while the waiver is Under the limited exemption, any payments made on your federal loans, regardless of the repayment plan you have been on, will count toward PSLF. The Department will begin to automatically adjust the payment counts of borrowers who have already consolidated their loans into the Direct Loan Program and have certified employment for PSLF, and those borrowers can expect to see these adjustments in their accounts in the coming months.

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