The real facts about student loan forgiveness!
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program
Public Service Loan Forgiveness (PSLF). Details below can be found on the U.S. Dept of Education website.
- “Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.”
- Qualifying Employers:
❖ Government organizations at any level (federal, state, local, or tribal)
❖ Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
❖ Other types of not-for-profit organizations that provide certain types of qualifying public services
❖ Serving in a full-time AmeriCorps or Peace Corps position also counts as qualifying employment for the PSLF Program.
- The following types of employers DO NOT QUALIFY qualify for PSLF:
- Labor unions
- Partisan political organizations
- For-profit organizations
- Non-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code and that do not provide a qualifying service
- What is considered “full-time “ employment
- At least 30 hours per week in one job, or combined two part-time positions.
- For borrowers who are employed by not-for-profit organizations, time spent on religious instruction, worship services, or any form of proselytizing may not be counted toward meeting the full-time employment requirement
**TIP** QUALIFYING STUDENT LOAN PAYMENTS:
You can make qualifying monthly payments only during periods when you are required to
make a payment. Therefore, you cannot make a qualifying monthly payment while your loans are in
• An in-school status
• The grace period
• A deferment
• A forbearance