Learn how to get your student loans forgiven!

Date: 
October 23, 2013

 

“Working at a nonprofit? Have student loans? Learn how to have them forgiven!”

The Public Service Loan Forgiveness (PSLF) Program encourages 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 if they have made 120 qualifying payments on those loans and are employed full time by certain public service employers.

Qualified employers include federal, state, or local government agency, entity or not-for-profit organization that has been designated as tax exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code. A private not-for-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services.

Loans under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for PSLF. Loans under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF. FFEL program or Perkins Loan Program loans can be consolidated into a Direct Consolidation Loan to take advantage of PSLF.

Eligible borrowers can submit the PSLF application to receive loan forgiveness. The application is currently under development and will be available prior to the date when the first borrowers will be eligible for the PSLF Program Forgiveness in October 2017.

To find out what type of federal loans you have, visit the National Student Loan Data System (NSLDS) at www.nslds.ed.gov. For more information regarding the PSLF Program click here.