[Counselor_Educ] Public Service Loan Forgiveness

[Marissa Mizer]

Public Service Loan Forgiveness


Public Service Loan Forgiveness will forgive remaining federal student loan 
debt after 10 years of qualifying loan payments and eligible employment. 
This program is designed for borrowers whose income is low relative to 
their debt for at least some of their time in a public service job.

Who can get Public Service Loan Forgiveness?

People who have federal student loans through the Direct Loan program and 
work in a wide range of "public service" jobs. Your job is eligible if you:

• are employed by any nonprofit, tax-exempt 501(c)(3) organization; • 
are employed by the federal government, a state government, local 
government, or tribal government (this includes the military and public 
schools and colleges); or • serve in a full-time AmeriCorps position.

If you don't meet these criteria, you may still be eligible in certain 
circumstances.

See www.IBRinfo.org for details.

What kinds of loans are covered?

Federal Stafford, Grad PLUS, or consolidation loans as long as they are in 
the Direct Loan program. Borrowers with federal loans held by a private 
lender (FFEL loans) can switch to the Direct Loan program to get this 
benefit:

www.loanconsolidation.ed.gov

When does the 10-year clock start, and which payments count?

Only employment and payments made after October 1, 2007 count towards the 
10 years. Qualifying payments must be made through the Direct Loan program 
and include Standard (10-year) Repayment, Income-Contingent Repayment, or 
Income-Based Repayment (available July 2009). These payments must be made 
while you're working full-time in an eligible job. If you meet all the 
criteria, the Go to www.IBRinfo.org to find out how you can make the most 
of this benefit.

The earliest your remaining debt could be forgiven is October 2017.