How Can I Achieve Student Loan Forgiveness?

Eliminate your nondefaulted student loans that were made or consolidated under the William D. Ford Direct Loan Program by working for any federal, state, or local government, as well as any charitable nonprofit organizations as part of the federal Public Service Loan Forgiveness (PSLF) program. Make the required 120 payments on your student loan while you perform any kind of full-time job in the public sector for ten years and the remainder of your loan will be forgiven. You can also benefit from reduced monthly payments based on your income during the mandatory 10-year service period.

Instructions

1

Work at least 30 hours per week for one or more eligible employers, such as a government agencies, charities or private educational institutions that are not-for-profit entities and tax-exempt as part of the PSLF Program. You can also volunteer for the Peace Corps or AmeriCorps full time as PSLF-eligible service while benefiting from a temporary forbearance.

2

Make 120 separate, monthly payments in full by the scheduled due date while you work for an eligible public service organization. Request income-based payments or forbearance if needed as the payments do not have to be consecutive, according to the Federal Student Aid. Pay one lump sum with your Peace Corps transition payment or AmeriCorps Segal Education Award upon completion of your volunteer service and continue the rest of your PSLF requirements with a full-time job in the public sector.

3

Document your full-time employment by a public service organization (or by a combination of public service organizations) with concurrent receipts for the required 120 loan payments to prove your PSLF eligibility until an official application form becomes available.