Yes, some or all of your federal student loans may be canceled if you are eligible for the public service loan forgiveness program (PSLF). The Department of Education oversees this program. After you meet all of the requirements, you can apply to have your loans forgiven.
To qualify for PSLF, you must:
- have Direct Loans
- work full-time in a qualifying public service job,
- be in an income-driven repayment plan,
- make 120 monthly payments (10 years).
PSLF Limited Waiver: The Department of Education announced a time-limited PSLF waiver that allows borrowers to receive credit toward PSLF for time that did not previously count. Borrowers must apply (and must apply to consolidate loans other than Direct Loans) before October 31, 2022.
Under the PSLF limited waiver, the following now counts:
- time in the wrong repayment plan,
- public service employment and repayment time that accrued before a borrower consolidated her loan (ie the clock does not reset),
- FFEL, Perkins, and some Parent PLUS loans can be discharged under the waiver if they are consolidated into Direct Loans,
- time in forbearance or deferment.
Borrowers only have until October 31, 2022 to apply for the waiver. To learn more about the waiver, see our FAQ on the waiver here, or visit the Department of Education’s website here.