How to Ask for Forgiveness for a Federal Student Loan

Participants in certain public service occupations can seek forgiveness for their student loans.

In 2007, the United States Congress approved a new law designed to encourage students to enter certain low-paying public service professions. The College Cost Reduction and Access Act established the Public Service Loan Forgiveness program which encourages students to enter into public service by allowing them to receive forgiveness for their federal student loans. Students will have their federal student loans forgiven after 10 years of service in a qualifying occupation.

Instructions

1. Check your eligibility for loan forgiveness. The forgiveness program is designed to forgive the loans of students who enter into occupations such as military service, police and fire service, public education and health care, social work, non-profit work and all government jobs. Students can call 1-800-4-Fed-Aid to determine if their specific occupation qualifies them for the forgiveness program.

2. Consolidate your loan into a Ford Direct Loan Program loan. The loan forgiveness program only applies to federal student loans made under the federal direct loan program. If your federal student loan is not currently under the auspices of the direct loan program then you will need to consolidate your loan into a direct loan program loan. To complete this consolidation you can contact the United States Department of Education at 1-800-557-7392. The clock will not start on your 10 years of service until your loan is consolidated into the direct loan program.

3. Preserve documentation of your work. This includes pay stubs, W-2 forms and tax returns. In order to qualify for loan forgiveness you must be able to demonstrate continuous full-time public service for 120 months. This documentation will enable you to demonstrate that you qualify for forgiveness after your 10 years of public services have been achieved.

4. Submit your claim for canceling your remaining debt. You can submit this claim once the 10 years of service have been accomplished. You cannot count service which occurred before Oct. 1 of 2007 or before your loan was consolidated into the direct loan program. Since the first qualifying loans will not be eligible for forgiveness until 2017, the United States Department of Education has not issued the necessary forgiveness forms. Monitor the Department's Public Service Loan Forgiveness web page in order to download the necessary forms as soon as they are published.

References

• StudentAid.Ed.Gov: Public Service Loan Forgiveness (PSLF)
• FinAid.org: Frequently Asked Questions about Income-Based Repayment and Public Service Loan Forgiveness
• MSN Money Central: Ask for student loan forgiveness
• FinAid.org: Public Service Loan Forgiveness
• Federal Student Aid: Logan Forgiveness for Public Service Employees
• U.S. Department of Education: Public Service Loan Forgiveness Program Questions and Answers

Resources

• Public Service Loan Forgiveness (PSLF) Site