The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
Requirements for Public Service Loan Forgiveness
You must be employed full-time, at least 30 hours per week. Several qualifying part-time jobs may also count if it adds up to at least 30 hours per week.
Eligible Loans: Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness.
Currently, borrowers on IDR plans make monthly payments that are based on 10% to 20% of their discretionary income and they can qualify for forgiveness in 20 to 25 years. Under Biden's plan, borrowers who earn less than $25,000 per year wouldn't be required to make any payments whatsoever.
There are two other instances in which your loans may be forgiven without making a payment:
Under the 10-year Standard Repayment Plan, your loans will be paid in full once you have made the 120 qualifying PSLF payments and there will be no balance to forgive. ... If this is the case for you, and you do not wish to pay this higher amount, then the PSLF Program may not benefit you.
To be eligible for forgiveness after making 120 qualifying payments, you must be employed full-time by a qualifying employer at the time you make each qualifying payment, at the time you apply for loan forgiveness, and at the time you receive loan forgiveness.
Your payments do not have to be in consecutive order, but they must be made on an income-driven repayment plan. In order to qualify, you must submit a Public Service Loan Forgiveness Employment Certification Form each year. Then at the end of 10 years, submit the formal Public Service Loan Forgiveness application.
Depending on the payment plan selected, your forgiveness with PSLF would be up to $24,150.
Trump and DeVos oppose immediate student loan forgiveness. Republicans in Congress don't support plans for widespread student loan forgiveness. Warren and Senate Minority Leader Chuck Schumer (D-NY) proposed that Trump be granted authority from Congress to cancel up to $50,000 of student loans for all borrowers.
8 Ways You Can Quit Paying Your Student Loans (Legally)
The term “income-driven repayment” describes a collection of plans that calculate a borrower's monthly student loan payment based on their income. ... Importantly, any remaining balance would be forgiven at the end of the plan's repayment term, which is either 20 years or 25 years, depending on the specific program.
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