If you’re employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program .
To qualify, you must be a full-time employee at a federal, state, or local government agency or at a 501(c)(3)-designated organization. Religious-based nonprofits are excluded.
How can you become eligible?
To make sure you’re eligible for PSLF, submit the Employment Certification for Public Service Loan Forgiveness form. The program requires this form for every year of service, so submitting it on an annual basis will help ensure you’re on track for PSLF.
Another important step is switching to an income-driven repayment plan. You’ll lower your monthly payments while extending your term to 20 or 25 years. If you stay on the standard plan, you won’t have any balance left to forgive after 10 years of payments.
Finally, consider consolidating your student loans into a direct consolidation loan. This step is helpful if you have Perkins or FFEL loans. Plus, it simplifies your monthly payments, so you’ll only have one loan to pay each month. You can estimate your possible forgiveness through our PSLF calculator.
Note: In some cases consolidating your loans may not be the best option for PSLF.