If you’re in the process of paying back your student loan debt, you’ve probably heard of student loan forgiveness. While the thought of having a portion of your student loans forgiven sounds great, there are several important things you need to know about the program.
What Is Student Loan Forgiveness?
Public Student Loan Forgiveness (PSLF) encourages college graduates to commit to working in the public sector in certain government or tribal jobs. Certain nonprofit positions may also be eligible. Under PSLF, borrowers who meet the criteria and repay their student loans for a set period of time have the remainder of the outstanding loan balance forgiven.
How Do I Get Student Loan Forgiveness?
To qualify, you must have an approved public sector or nonprofit job. Under this plan, you must commit to making 120 payments on your Direct Loan Program loans.
What About Forbearance and Deferment?
Since you have to make payments consecutively, you may still be eligible to take advantage of forbearance and deferment options.
What Else Should I Know?
It’s important to remember that not every borrower working in the public or nonprofit sectors will qualify. There are several criteria a borrower must meet to be eligible for Public Student Loan Forgiveness:
- Loans must be part of the Direct Loan Program
- Borrowers must make 120 separate monthly payments
- Borrowers must pay the full scheduled installment amount
- Payments must be made no later than 15 days after the scheduled payment due date
- Loans may not be in default
Not Sure Where to Start?
Sorting through all the complex options for student loan repayment on your own can be tricky. If you’d like help, Take Charge America’s Student Loan Counseling offers unbiased assistance to determine which student loan repayment options are right for you and your unique financial situation.
Start now! Call 877.784.2008 or schedule a call here.