Published March 2012. Financial aid and student loan rules change often, so some details may be out of date. Ask us about your situation.
Borrowers making student loan repayment on federal loans received under the Federal Direct Loan Program can participate in the Public Service Loan Forgiveness (PSLF) Program. A recent announcement from the Department of Education offers details for borrowers repaying student loans employed with a federal, state, or local government agency, entity or organization or a non- profit organization that has been designated as tax exempt by the IRS under Section 501(c ) (3) of the Internal revenue Code.
Teacher Eligibility
If you are a teacher, or other employee of a public service organization, under contract for at least eight out of 12 months, you meet the full-time standard if you work an average of at least 30 hours per week during the contractual period and receive credit by your employer for a full year’s worth of employment.
New Form Available to track eligibility
The Employment Certification for Public Service Loan Forgiveness form is now available and can be completed annually or whenever you change jobs.
How to Have Remaining Student Loan Balances Forgiven
1. Borrower must make 120 on time, full, scheduled monthly payments on Direct Loans. Only student loan payments made after October 1, 2007, qualify.
2. Borrower must make student loan payments under a qualifying repayment plan.
3. While making each student loan payment, borrower must be working full time at a qualifying public service organization.
Borrowers that have student loans under the Federal Family Education Loan (FFEL) Program and/or the Perkins Loan program can consolidate these loans into a Direct Consolidation Loan to take advantage of the PSLF. For borrowers that do not know what type of federal student loans they have, go to the National Student Loan Data System (NSLDS) website.