HACK 132 Check If You’re Eligible for Forgiveness

If you work in a public service field, you may be able to have your federal direct student loans forgiven, tax-free, after ten years through the Public Service Loan Forgiveness program (PSLF). Qualifying work includes careers in local, state, or federal government (including law enforcement), public schools, and nonprofit organizations. To be eligible:

• You don’t have to work at the same job for all ten years, but you must have your employer certify your employment each year.
• You also must make on-time payments for the entirety of that ten-year span under a standard repayment plan or an income-driven repayment plan.
• Once you’ve made your 120 payments, you can apply for forgiveness.

PSLF was created in 2007, and the first student loan borrowers became eligible for forgiveness in 2017. It’s still difficult to get your loans discharged because many applications get rejected for missing information or not meeting program requirements. To learn more about the restrictions and requirements for this program, visit https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service. There, you’ll be able to use the Federal Student Aid PSLF Help Tool, which leads you through prompts to determine your eligibility for PSLF and help you submit the required forms. The only plans that protect your eligibility for the Public Service Loan Forgiveness program are REPAYE, PAYE, IBR, and ICR (see hack 130). If you have private student loans, your payment plans will differ.