An Introduction to Public Service Loan Forgiveness



Those having huge student debts can show interest in the Public Service Loan Forgiveness (PSLF) program. The legislative body passed a ruling in 2007 that has made it possible for individuals working in the sector of public service to be forgiven large portions of their student credits/loans. Whilst there are several conditions and stipulations, this act has made it easier for individuals holding low-income public service jobs to fully repay their student loans.

The kind of loan that a person has pulled out bears whether or not he or she might qualify. Federal loans like Federal Direct PLUS Loans, Federal Direct Consolidation Loans and Federal Direct Stafford Loans may all be forgiven in this program. Individuals with FFEL loans may be eligible for Public Service Loan Forgiveness in case the loan is merged in to the Federal direct loan.

Once people holding public jobs have completed 120 payments on any of the aforementioned loans, they would afterwards be forgiven the remaining balance of their loans. The Public service careers that qualify a person to participate in this loan forgiveness plan include working at government jobs (besides serving in the Senate or Congress), serving the police force or in the army, working for public interest lawful services or social services and working in public education jobs or public health.

Getting full-time jobs at private non-profit organizations or foundations, working for tribal colleges and working as librarians for libraries or public schools would also qualify individuals to get student loan forgiveness when the relevant disbursements have been made. The private non-profit foundations should not be labor unions or partisan political organizations. They should offer at least one among the following civic services:

· Military services

· Public services for the elderly and persons with disability.

· Emergency management

· Public safety

· Public interest legal services

· Early childhood education – This includes Head Start, state-funded pre-kindergarten and regulated or licensed child care.

· Law enforcement

· Public library services

· Public health – This includes nurse practitioners, nurses, full-time professionals and nurses in a medical setting.

· Public education

· School library services

· Other school-based services



Payments are counted only if they have been completed after October 1, 2007. A person would not be in a position to use either a graduated repayment method or an extended repayment method to be eligible for student loan forgiveness, but income contingent payments, income based repayment have to be made whilst the individual is still in civic service. In case people do not proceed on in civic service whilst making the aforementioned payments, they would not be eligible for Public Service Loan Forgiveness or student loan forgiveness.

Loan forgiveness for individuals working in the public service sector may be a great advantage to those not receiving a large salary. With the above mentioned stipulations and rules being applicable, it is not very difficult to qualify for the program, provided that a person continues working for the public service for a long period of time. Getting student loan forgiveness in the Public Service Loan Forgiveness program can assist a person to be relieved from a complicated financial responsibility that could otherwise lead to economic difficulties.

Loan Forgiveness for the Disabled >

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