The Public Service Loan Forgiveness Program began in 2007 in order to alleviate the burden of student loan debt on employees in nonprofit or government sector. Federal, state, and local government employees, as well as those working for 501(c)(3) organizations are eligible to have the balance of their student loans forgiven after making 120 monthly payments. For new graduates planning a career in public service, this program can offer a significant financial benefit.
Eligible loans for the Public Service Loan Forgiveness Program including Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Federal Perkins Loans and Federal Family Education Loans are not currently eligible for student loan forgiveness through the Public Service Loan Forgiveness Program. Borrowers who have a combination of Subsidized and Unsubsidized Loans may benefit from consolidating them into a new single Federal Direct Consolidation Loan to simplify the repayment process. Borrowers can select a repayment plan that fits their budget while still working toward student loan forgiveness. To learn more check out our Student Loan Forgiveness Guide.