The Public Service Loan Forgiveness program forgives any outstanding federal loans after 10 years of consistent payments for borrowers that were employed in a public service field. For example, a teacher, government worker, or social services worker, or a member of the military.
In the fiscal 2018 budget, Congress announced that the current iteration of the Public Service Loan Forgiveness is coming to an end.
The End of PSLF
The Public Service Loan Forgiveness program started in 2007 under the Bush administration. The Public Service Loan Forgiveness Program services teachers, public defenders, rural nurses and doctors, and other public servants who live in areas where their income may be significantly lower than the national average.
The Temporary PSLF Extension
The extension offers forgiveness on a first-come, first-served basis. Additionally, lawmakers set aside $350 million for this program. The program ends when the money runs out.
The US Department of Education also recently released information regarding a temporary extension program. We listed the qualifications below:
- Eligible borrowers must enroll in specific repayment plans. Primarily, those that cap monthly loan payments to a percentage of their income.
- Borrowers must have made consistent, on-time payments for the past 10 years on their student loans.
- Eligible borrowers need a copy of their last payment. They also need a copy of a payment they made one year ago prior to applying for loan forgiveness.
- The payments in this program must be equal to the payments that would have made if you had been in the correct program.