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LearnFAQDebt Management

How does Public Service Loan Forgiveness actually get me to zero after 10 years?

Answer

Public Service Loan Forgiveness cancels your remaining federal Direct Loan balance tax-free after you make 120 qualifying monthly payments while working full-time for a government or 501(c)(3) nonprofit employer. The payments must be made under an income-driven repayment plan (or the standard 10-year plan), and they do not need to be consecutive. The three pillars are: the right loan type (Direct Loans, so consolidate FFEL or Perkins loans first), the right repayment plan, and qualifying employment certified each year with the PSLF form. According to the Department of Education, submitting the employment certification annually is the single best way to avoid a nasty surprise at payment 120. Track your count on studentaid.gov.

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