At the National Student Debt Forgiveness Center, our representatives understand how monotonous and confusing it can be to navigate the process of applying for student loan forgiveness. That is why we are here to help. Congress passed the Public Sector Loan Forgiveness program to enable loan borrowers to have their student loans forgiven after 120 qualifying payments. Our goal is to simplify this process in order to help minimize your long-term loan payments.
Our job is to help ensure that you are on the right track towards receiving tax free forgiveness. Below is an outline of the steps that you will need to follow in order to receive that forgiveness in as little as ten years.
Any loan that is part of the William D. Ford Federal Direct Loan Program qualifies for PSLF. Payments made under a Direct Consolidation Loan can also qualify. Loans received from private lenders do not qualify for the program.
Making a qualified payment means that they are direct loan payments and that they are made on time. “On time” means no later than 15 days after the due date. Payments made after Oct. 1, 2007 can qualify, and they do not have to be consecutive, which may apply if your loans are in a grace period or have breaks for forbearance.
Working in a position that is eligible for PSLF is less about your job title and more about the company that you are working for. You can qualify if you work for a non-profit that is a 501(c)(3) tax exempt company, or any federal, state, county, or city government organization. Labor unions and for-profit organizations do not qualify.
Full-time employment is also a requirement of working in an accepted field. For purposes of the PSLF, full-time work is considered anything more than 30 hours per week. This remains true if you work more than one qualifying job. As long as the total of the two positions is more than 30 hours per week, you can qualify.
If you are working towards loan forgiveness through PSLF, it is important that you submit your income driver payment application and your Employment Certificate annually, or any time you change employers during that ten year span. This will save you time and headaches in the long run, and ensure that you remain eligible. You will also need to submit an Income Driven Repayment Application.
To be eligible, you must work for a non-profit 501(c)(3) organization or government organization.
The following are examples of careers and organizations that qualify: