All About Public Student Loan Forgiveness (PSLF) – Coming Soon

As of 2017, up to $1 billion in student loan debt is eligible for forgiveness through the US government. The new forgiveness plan called ‘Public Student Loan Forgiveness’ (PSLF) applies to certain borrowers who have been making regular government student loan payments and are enrolled in an income-based repayment system.

Are you eligible for this new plan? Here’s a closer look at the many students who may find some debt relief through PSLF in the near future.

eligibility requirements

To take advantage of the new loan forgiveness plan, borrowers must fall into one of three categories, including:

  • Those who currently work for the US government or military
  • Those who work for a nonprofit company and have specific roles within that company.
  • Those who currently work for a 501(C)3 nonprofit organization.

While loans are not forgiven immediately, anyone who meets the above requirements can get student loan forgiveness after a ten-year period of prompt repayment.

Borrowers who have been in default for the past ten years are not eligible to apply for this program, and the above requirements must be met in detail (to apply as an employee of a non-profit company, for example, you must meet one of the job specifications). detailed by the US government).

start dates

The first wave of eligible borrowers will be able to apply for PSLF starting in July 2017. It is estimated that approximately 14% of borrowers will be able to apply for this program, which translates to nearly $8,000 in student loan debt forgiveness.

While not a large number (and while it doesn’t apply to most borrowers), this new government plan does provide some forgiveness for those who meet the eligibility requirements.

Please note that this plan does not apply to private loans. To apply for the new PSLF plan, you may have current government loans that are currently being paid off, and you must have applied for an income-sensitive repayment plan. Since the eligibility requirements are not straightforward, it is best to speak with a qualified attorney if you think you may fall into one of the categories listed above.

How to evaluate your case

It is possible to get some student loan forgiveness when it comes to federal student loans, but the details of doing so can be complicated. To ensure you get what you deserve when it comes to student loan forgiveness, be sure to contact an attorney who has experience in this area.

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