Public Service Loan Forgiveness

The Public Service Loan Forgiveness  (PSLF) Program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments.

 What is forgiven? The remaining interest and principal of the borrowers loans are forgiven.

 How many payments are required? The loan forgiveness occurs after 120 monthly payments made on or after October 1, 2007 on an eligible Federal Direct Loan. Periods of deferment and forbearance are not counted toward the 120 payments. Payments made before October 1, 2007 do not count.

Define public service employment? The borrower must be employed full-time in a public service job for each of the 120 monthly payments. Public service jobs include, among other positions, emergency management, government , military service, public safety and law enforcement (police and fire), public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations), public education, early childhood education (including licensed or regulated childcare, Head Start, and State-funded prekindergarten), social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy on behalf of low-income communities at a nonprofit organization), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations. Full-time faculty at universities, as well as faculty teaching in high-need subject areas and shortage areas (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), also qualify.

Which loans qualify for the PSLF Program?  Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness. Borrowers in the FFEL program will need to consolidate into Direct Loans.

What should I do now? Submit the Employer Certification Form  to the US Department of Education annually  to ensure that the qualifying public service employment is properly recorded.

How do I erase my loans under the PSLF Program?  File a PSLF application with the US Department of Education after making 120 qualifying payments while working full-time in a qualifying public service job.

 
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About Dunne Law Offices, P.C.

Philadelphia Bankruptcy Attorney You may see chapter 7 or chapter 13 as a last resort. But with proper financial planning and legal advisement on your side, bankruptcy can be the moment when you regain control of your finances. I want to support you with all the legal expertise, experience, creativity and deductive reasoning I have to give. My life has been dedicated to developing the skills and experience that allow me to help you navigate financially difficult times. Education As an undergraduate at Pennsylvania State University, I served as an infantry soldier in the Pennsylvania National Guard and as a cadet in the R.O.T.C. My major in Criminal Justice led me to attend the New England School of Law in Boston. Once there, I honed in on bankruptcy law and was a scholarship recipient for “Securities Regulation.” I followed that with an internship at the Boston Stock Exchange and a clerkship for McGarthy & Ged. During this time, I learned how to help people find financial relief through legal action. Professional Memberships and Recognition Bankruptcy law changes every day. Right now, courts across the United States are making decisions that will impact your judge’s point of view on your case. As an effective consumer bankruptcy lawyer, I stay apprised of the most recent happenings in the field through active membership in the following organizations. State Bar of Pennsylvania – Licensed to practice before all state courts, the United States District Court for the Eastern and Middle District of Pennsylvania, as well as the United States Court of Appeals for the Third Circuit National Association of Consumer Bankruptcy Attorneys (NACBA) National Association of Consumer Advocates (NACA) Call for a free consultation at (215) 551-7109.
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