Frequently Asked Questions

Which Loans Are Eligible for PSLF?

Private student loans are not eligible for loan forgiveness. PSLF is only a program for student loans of the Federal Direct Loans type.

These include:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • Direct Consolidation Loans 

If the loan isn’t on the list above, it’s not eligible for loan forgiveness.

Are FFEL Loans Forgivable?

Up until June 2010, Federal Family Education Loan (FFEL) Program loans were one of the biggest federal loans issued to student borrowers. Unfortunately, these loans were not issued by the U.S. Department of Education, and do not qualify for PSLF.

You could consolidate these loans into a Direct Consolidation Loan, but that will reset the clock on your PSLF.

Is Loan Forgiveness Taxable?

The loan forgiveness is not taxable. No matter how much interest you’ve accrued, the full balance of the loan is forgiven, and the amount forgiven isn’t taxed.

When Does the Clock Start for My 120 Loan Payments?

You can begin making qualifying PSLF payments once the in-school deferment and grace period on your loans ends. If you want to start making payments right away, consolidate your loans and begin repayment immediately.

Consolidating your federal loans resets the clock on Public Service Loan Forgiveness. Don’t consolidate if you’ve already made eligible payments under PSLF, please check with a representative before hand.

Does Your Employer Qualify for PSLF?

  • Do you work for a government organization?  This includes federal, state, local or tribal government entities; public child or family service agencies; or tribal colleges or universities) Public school and non-profit teachers, public nurses (such as VA Hospitals), police officers, employees of federal departments such as IRS, Dept. of Agriculture, Defense, Interior, etc., state employees such as CPS, public, tribal,or university professors, anyone currently employed full time by any branches of military. 
  • Do You Work for Peace Corps or Americorps? (If you are a full time Peace Corps or Americorps volunteer, you qualify)
  • Do you work for a 501(c)3 or a private, not for profit organization? (You generally work in not-for-profit private schools, colleges, universities, or an organization that provides public service.)

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