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Latest from FSA: The 5 “Qs” of Public Service Loan Forgiveness

May 13, 2014


1F_1M_Standing_Classroom_Desks copyAre your borrowers aware that there is an employment-based forgiveness program for federal student loans? The U.S. Department of Education recently highlighted some of the key points of the Public Service Loan Forgiveness Program to help borrowers figure out if they could qualify:

1. Work in “Qualiflying Employment,” including:

  • Federal, state, local, and tribal governmental organizations
  • Not-for-profit organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code
  • Not-for-profit organizations that provide specific public services, such as public education, law enforcement, public health, or legal services

 2. Have a “Qualifying Employment Status”

  • Borrowers must be a full-time employee of a qualifying organization to receive Public Service Loan Forgiveness

3. Have a “Qualifying Loan”

  • Must be a Direct Loan
  • Borrowers may consolidate other federal student loans into a Direct Consolidation Loan to qualify

4. Have a “Qualifying Repayment Plan,” including:

  • All income-driven repayment plans
  • The 10-Year Standard Repayment Plan (although these borrowers should switch to an income-driven plan ASAP)

5. Make 120 “Qualifying Payments”

  • Borrowers must make 120 loan payments by they due date (or up to 15 days after)
  • Payments must have been made after October 1, 2007

For a more in-depth look at Public Service Loan Forgiveness, please read the Department of Education’s original article:


Megan Freese, Communications Intern

Megan Freese, Communications Intern


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