Before you use DollarGeek’s Public Service Loan Forgiveness (PSLF) calculator, it’s important to understand what the program is. If you’re eligible, our Public Service Loan Forgiveness calculator will help you find out how much forgiveness you can expect to receive.
What Is The Public Service Loan Forgiveness (PSLF) Calculator And Program?
The Public Service Loan Forgiveness (PSLF) program is a federal program in the United States that forgives the remaining student loan balance for borrowers who have made 120 qualifying monthly payments while working full-time for a qualifying employer.
The PSLF calculator is a tool provided by the U.S. Department of Education to help borrowers estimate their potential eligibility for the PSLF program. It allows borrowers to input their loan balance, income, family size, and other relevant information to determine if they may qualify for loan forgiveness under PSLF. The calculator helps borrowers understand the requirements and the estimated amount of loan forgiveness they may receive through the program.
How Do I Qualify For The Public Service Loan Forgiveness Program?
To qualify for the Public Service Loan Forgiveness (PSLF) program, you need to meet several requirements:
– Loan Type: You must have federal Direct Loans.
– Employment: You must be employed full-time by a qualifying employer while making the 120 required payments.
– Qualifying Payments: You need to make 120 qualifying monthly payments.
– Repayment Plan: You must be enrolled in an eligible repayment plan.
– Certification: You must submit the Employment Certification Form (ECF) annually or when you change employers.
What Types Of Jobs Qualify For The Public Service Loan Forgiveness Program?
Qualifying employers include government organizations (federal, state, local), non-profit organizations (tax-exempt under Section 501(c)(3) of the Internal Revenue Code), AmeriCorps or Peace Corps, and other types of non-profit organizations that provide qualifying public services.
Which Loans Qualify For The Public Service Loan Forgiveness Program?
You must have federal Direct Loans, which include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans (for parents and graduate or professional students), and Direct Consolidation Loans
Is Forgiveness Through PSLF Taxable?
No, forgiveness through the Public Service Loan Forgiveness (PSLF) program is not taxable under current U.S. tax laws. The forgiven loan amount under the PSLF program is considered tax-exempt.