What is the Public Service Loan Forgiveness Program?
The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments on those loans while employed full time by certain public service employers.
What must I do to have any remaining balances on my Direct Loans forgiven under the PSLF Program?
You must make 120 on-time, full, scheduled, monthly payments on your Direct Loans. Only payments made after October 1, 2007 qualify.
You must make those payments under a qualifying repayment plan.
When you make each of those payments, you must be working full-time at a qualifying public service organization.
“We should be suspicious of colleges with very high graduation rates if they also have very high default rates. A high graduation rate may imply that a college is effective in preparing students for the world after college, but a high default rate may well indicate that a college is not successful in preparing its students for the world. It should be emphasized that there could be other valid explanations for a college with a high default rate, such as location in a geographic area particularly hard hit by the recession, but it does at least raise legitimate questions about the graduation requirements at these colleges.
Graduation rates are largely under the control of colleges, and some colleges have been accused of lowering standards to keep graduation rates high. Since colleges have very little influence on default rates (other than their effectiveness in preparing students), default rates can provide an indication of which colleges (if any) may have lowered its graduation standards.”
Congress has been debating this issue for quite some time but could not come up with anything both sides could agree on, instead they both blamed each other in a game of chicken to see who would budge as the clock for interest rates to double drew closer. In the end Congress decided that it is more important for them all to take a nice vacation and break for holiday on the Monday of the week. As you can see Congress has themselves as their #1 priority.
“The interest rates on government-backed student loans for 7.4 million college students doubled today after Congress left town for the July 4 recess without resolving the issue.”