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.
The White House just released a post that a new bipartisan compromise will help students save money on the loans. Though it is hard to say if the bill has the needed support to pass.
“The Senate plans to vote at some point this week on a plan that would tie interest rates on new federal student loans to the market, rather than having a fixed rate for years on end.
The plan, created by a bipartisan group of senators, has substantial support from top congressional leaders, many Republicans and President Obama, who took a personal interest in the matter. But a few Democrats hate the proposed plan and are attempting to change it, slowing its path to a vote.”