Student Loan Forgiveness for Federal Employees

Paying off student loans takes years, so it’s good to know options that can help you out.

One such option is student loan forgiveness for federal employees.

The government cancels out any unpaid debts of qualified employees.

However, borrowers should be working for an eligible employer.

Moreover, they should first make 120 qualified student loan payments.

We’ve laid out the entire program for you with this easy guide for Federal Employees.

Student Loan Forgiveness for Federal Employees Guide

1. What is the Public Service Loan Forgiveness (PSLF) Program?

The US government offers Public Service Loan Forgiveness (PSLF) Program to eligible federal employees.

If you qualify, under certain conditions, then your remaining balance on your loans can be forgiven.

Professionals like public school teachers, firefighters, and military staff can apply for public service loan forgiveness program.

2. Who qualifies for student loan forgiveness for federal employees?

Full-time federal employees can apply for student loan forgiveness.

However, there’s also eligibility for employers.

Borrowers should be working for either of the following:

Federal, tribal, state, or local institutions
Tax-exempt non-profit organizations
Non-tax exempt groups that provide public services
Full-time volunteers of AmeriCorps or Peace Corps

3. Who is disqualified from student loan forgiveness for federal employees?

Government contractors do not qualify for student loan forgiveness for federal employees.

Aside from them, the employees of the following are also disqualified:

Political groups
Labor unions
Non-tax exempt non-profit groups that do not provide public service

4. Which debts qualify for student loan forgiveness for federal employees?

Only Direct Loans qualify for student loan forgiveness for federal employees.

These are loans directly borrowed and therefore usually have lower interest rates.

There are four types of Direct Loans:

Direct Subsidized Loans (for undergraduates)
Federal Direct Unsubsidized Loans (for undergraduates, graduate students, and professionals)
Parent Loan or Direct PLUS Loans (for parents, graduate students, and professionals)
Direct Consolidation Loans (federal student loans are combined into one)

Meanwhile, these debts are not qualified: Federal Family Education Loans, Perkins Loans, and private loans.

5. What federal loan do you have?

Know the kind of federal loan you have by visiting the site called “My Federal Student Aid.”

If the word “direct” is listed beside the name of your loan, then you have a Direct Loan.

Check your loan type to see if you qualify for federal student loan forgiveness.

6. Employment certificate

400,000 people could lose out on student loan forgiveness after following PSLF guidelines for years #PSLF https://t.co/ZBp7D28X2N

— ProtectPSLF (@ProtectThePSLF) June 30, 2017

Applicants for federal student loan forgiveness should fill out an Employment Certification Form for Federal Employees.

The form is filed every year or whenever an applicant changes employers.

The certificate shows:

Federal employer’s ID number
Start and end dates of applicant’s employment
Employment status

Which Student Loan Payments Qualify?

Defend Federal Student Loan Forgiveness Benefits (PSLF) https://t.co/AkfDui7k68 via @Change

— Jeffrey Lowe (@sportsvibeLive) July 13, 2017

The Congress created student loan forgiveness for federal employees in 2007.

However, only payments made after October 1 that year qualify.

Since public service loan forgiveness applications get reviewed only after roughly 10 years of repayment, federal employees can start applying for student loan forgiveness only in fall of this year.