Student Loan Reduction

Public Service Loan Forgiveness (PSLF)

STUDENT LOAN FORGIVENESS PROGRAMS

TO QUALIFY FOR PUBLIC SERVICE LOAN FORGIVENESS (PSLF), YOU MUST

The PSLF Program was established to encourage individuals to work in public service by forgiving the remaining balance of their Direct Loans after they have made 120 qualifying payments while employed by a qualifying employer.

You must be employed full-time by a qualifying employer when you make each of the required 120 qualifying payments on your Direct Loans, and also at the time you apply for loan forgiveness after making the last of those 120 payments, and when you receive loan forgiveness.

No. According to the Internal Revenue Service (IRS), student loan amounts forgiven under PSLF are not considered income for tax purposes. For more information, check with the IRS or a tax advisor.

There is no income requirement to qualify for PSLF. However, since your required monthly payment amount under most of the qualifying PSLF repayment plans is based on your income, your income level over the course of your public service employment may be a factor in determining whether you have a remaining loan balance to be forgiven after making 120 qualifying payments.

We cannot make any guarantees about the future availability of PSLF. The PSLF Program was created by Congress, and Congress could change or end the PSLF Program.

PSLF is available only for Direct Loans; however, if you have loans under another federal student loan program, you may consolidate those loans into a Direct Consolidation Loan, which is eligible for PSLF.