A loan forgiveness program is a financial program that cancels or “forgives” all or part of a borrower’s loan, typically under specific conditions. These programs are often offered by the government, employers, or non-profit organizations and are usually designed to encourage individuals to work in certain fields, like public service, education, or healthcare, or to provide relief to those who are struggling to repay their loans.
Eligibility
- Employment at U.S.-based government organizations at any level (federal, state, local, or tribal)—includes the U.S. military
- Employment at not-for-profit organizations that are tax-exempt under Section 501(c) (3) of the Internal Revenue Code, other eligible not-for-profit organizations
- Must be enrolled in an income-driven repayment plan
- Must still be working for a qualifying employer at the time you submit your form for forgiveness
Benefits
- The PSLF Program forgives the remaining balance on federal loans.
Planning Tips
- Minimum 10-year timeline
- Applies to federal loans only
- Applies after you’ve made the equivalent of 120 monthly payments (they do not have to be consecutive, and does not have to be with the same employer)
- Complete the Public Service Loan Forgiveness (PSLF) Form With the PSLF Help Tool Learn more.