Student Loan Forgiveness For Federal Employees

The Public Service Loan Forgiveness Program is designed to encourage people to work in public service positions by providing them with debt relief if they work long enough.

Back in 1974, President Gerald Ford signed the Public Service Loan Forgiveness Program into law, which states that after working for 10 years in a government or non-profit organization, any remaining student loan balance would be forgiven.

The Department of Education (DOE) has been trying to get the word out about this program, but it’s still a bit of a mystery to many people. The DOE released a resource guide in 2015 that offers answers on everything from how much is forgiven and who qualifies, to how you can apply for the program.

For starters, you must have been working full-time in an eligible federal or non-profit organization since October 1st 2007. If you’re working towards your degree at an eligible school (a school that meets certain qualifications), then these remaining balances will be forgiven after 120 qualifying payments (or 10 years). Also, if you have multiple types of student loans (e.g., subsidized Federal Stafford Loans and unsubsidized Federal Stafford Loans), those remaining balances will not be eligible for forgiveness under this program; only one type can be applied toward loan forgiveness per borrower.

Although Congress passed the law four decades ago, it’s only recently that borrowers have been able to take advantage of it. Since the first group of borrowers was due to have their loans forgiven in 2017, there’s still very little data about how many people will have their loans forgiven and what it means for the government.

Although Congress passed the law four decades ago, it’s only recently that borrowers have been able to take advantage of it. Since the first group of borrowers was due to have their loans forgiven in 2017, there’s still very little data about how many people will have their loans forgiven and what it means for the government.

Despite this lack of information, some experts are predicting that hundreds of thousands of federal employees could take advantage of Public Service Loan Forgiveness over the next few years—a number that would cost taxpayers billions by 2028.

What is The Public Service Loan Forgiveness Program?

The Public Service Loan Forgiveness (PSLF) program provides relief to individuals employed full-time in public service or non-profit organizations. If you qualify, your federal student loan debt will be forgiven after 10 years of qualifying payments.

The PSLF program is not the same thing as income-driven repayment plans. The PSLF program includes two additional requirements:

• You must make 120 monthly payments on your Direct Loans while working full-time in qualifying employment; and
• Your loans must be serviced by FedLoan or Great Lakes Higher Education Corporation (if you consolidate into a Direct Consolidation Loan).

The Public Service Loan Forgiveness Program is designed to encourage people to work in public service positions by providing them with debt relief if they work long enough.

If you work for a public service organization, you may be eligible for student loan forgiveness. In order to qualify for this program, you must meet the following criteria:

• You worked in public service for 10 years and made 120 monthly payments under an income-driven repayment plan. After making these payments and working in public service, the remaining balance on your loans will be forgiven. If you take out new loans during this time period, they will not count towards your required 120 monthly payments.

Student Loan Forgiveness For Federal Employees

Student loan forgiveness is a government program that allows eligible federal employees to have their student loans forgiven. There are two types of student loan forgiveness: Public Service Loan Forgiveness (PSLF) and Teacher Student Loan Forgiveness.

To be eligible for student loan forgiveness through the public service program, you must be working full or part time at a non-profit or government organization (a 501(c)3 tax-exempt nonprofit). You must also make 120 on-time payments toward your loans within ten years of being employed by your employer, and you must work in an occupation where the majority of people are not using their education degree for employment purposes. Lastly, you must be on an income-driven repayment plan that allows for partial financial hardship relief if necessary (such as Income Based Repayment, Income Contingent Repayment or Pay As You Earn).

In the end, there are many ways to save money when it comes to student loans. The most important thing is not to give up on your goal of getting out of debt and finding a better financial future. If you can stay persistent and keep looking for solutions until you find them, then there will always be hope that someday—perhaps sooner than later—you’ll be able to say goodbye forever!