Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program is a United States government program that was created under the College Cost Reduction and Access Act of 2007 (CCRAA) to provide indebted professionals a way out of their federal student loan debt burden by working full-time in public service. The program permits Direct Loan borrowers who make 120 qualifying monthly payments under a qualifying repayment plan, while working full-time for a qualifying employer, to have the remainder of their balance forgiven. The earliest time in which borrowers could receive forgiveness under the program was after October 1, 2017. The Department of Education reported that 2,215 borrowers had the remainder of their respective student loans forgiven under the program as of April 30, 2020 for a denial rate of 98.5%. The PSLF program has received criticism and has been the subject of litigation by loan-holders trying to discharge their student loans. Qualifying employers Government organizations or agencies (federal, state or local), 501(c)(3) organizations as defined by the IRS, and some other types of not-for-profit organizations providing designated public services qualify for PSLF.