What is Public Service Loan Forgiveness (PSLF) & How It Works?
Public Loan Forgiveness (PSLF)
As per Public Service Loan Forgiveness (PSLF) program, if the qualified borrower (Employed At A Qualifying Public Service Entity) makes 120 monthly repayments towards the student loan then the Government will forgive the balance student loan.
The PSLF program has three basic conditions:
- Have a Direct Student Loan
- Repayments are made under the qualifying repayment plan
- The borrower makes 120 qualifying repayments being the employee of a qualifying public service entity.
Qualifying repayment plans include:
- Pay As You Earn (PAYE) Plan
- Revised Pay As You Earn (REPAYE) Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
- 10-year Standard Repayment Plan
FedLoan is the ONLY loan servicer that manages the Public Service Loan Forgiveness (PSLF)