Public Service Loan Forgiveness
If you work in public service, you may be able to have part of your federal student loan debt forgiven. Qualifying public-interest jobs include government service, military service, law enforcement, public health, and certain teaching positions.
Public service loan forgiveness is not automatic. You must apply for loan forgiveness once you have made 120 qualifying payments. And To qualify you must:
- Have a Direct Subsidized or Unsubsidized, Direct PLUS, or Direct Consolidation Loan that is not in default.
- Make 120 monthly payments after October 1, 2007.
- Pay under the IBR, ICR, standard (10-year), or other qualifying plan.
- Be employed full-time in a public service job during the period in which you make each of the 120 payments.
Perkins and FFEL loans are not eligible for public service loan forgiveness. However, you can consolidate these loans into a Direct Consolidation Loan to take advantage of public service loan forgiveness. Payments made prior to consolidation do not count toward the 120 qualifying payments.
Tip: Any amount forgiven under the public service loan forgiveness program is NOT taxable as income.
See StudentAid.gov for more details on whether you qualify for public service loan forgiveness
On May 23, 2018, the U.S. Department of Education issued a bulletin announcing the temporary expansion of the Public Service Loan Forgiveness (PSLF) Program. This program provides additional conditions under which borrowers may become eligible for PSLF. For additional information visit StudentAid.gov/tepslf.
New York State Get on Your Feet Student Loan Forgiveness Program
The New York State Get on Your Feet Student Loan Forgiveness Program is designed to help recent New York State college graduates focus on establishing their careers and starting life out on a sound financial footing. A graduate will be eligible to receive an award equal to 100 percent of his or her monthly federal income-driven repayment plan payments for 24 months of repayment.
To qualify you must:
- Graduate from a New York high school or receive a New York State high school equivalency diploma
- Graduate from a college or university headquartered in New York on or after the 2014-2015 school year
- Earn less than $50,000 adjusted gross household income
- Enroll in the federal Income Based Repayment plan at 10% of discretionary income, the Pay as You Earn plan, or the Revised Pay as You Earn plan, and current on your repayment obligations
- Continue to live and work (if employed) in New York
- Apply for the program within 2 years of graduation
If you qualify, the state will make your federal student loan payments for 2 years. Those payments will be made directly to your federal loan servicer(s). Please note that any loan forgiveness award payment made on your behalf may have tax implications. Recipients will receive a 1099 form, issued by the NYS Office of the State Comptroller, reflecting the total loan forgiveness payments made for the tax year. Any questions regarding potential tax implications should be directed to a tax professional, the Internal Revenue Service, or the NYS Department of Taxation and Finance. The program is being administered by the New York State Higher Education Services Corporation. To learn more or apply, visit hesc.ny.gov/GetOnYourFeet.