Student Loans - How does Public Service Loan Forgiveness work??

The murky waters of student loan forgiveness

Student Loans - How does PSLF work??

I recently attended an intensive course all about student loans.  You may think - how boring?  Hour after hour just discussing student loans?  I have to tell you - it was actually incredibly interesting and I have the amazing leaders in this space Heather Jarvis and Adam Minsky to thank for that.  Shout outs to them aside, what were some of my key takeaway's?

First off, the Public Service Loan Forgiveness program - while it is an active congressional measure - has yet to actually forgive any student loans!  In fact I personally suspect the government doesn't even have a proper plan in place yet to honor the forgiveness.  In 2007, Congress passed the College Cost Reduction and Access Act of 2007 which first created the Public Service Loan Forgiveness program.  The Public Service Loan Forgiveness program has a few requirements.  As Heather says:

1. You have to be making the right kind of payment - your student loan payments must be in Pay as You Earn, Income Based Repayment or Income Contingent Repayment status.  Insider's tip - Payments made before October 1, 2007 don't count towards forgiveness.  
2. On the right kind of loan - your student loan must be a Federal Direct loan issued before July 2010.
3. While working at the right place - you must be working for a government agency or 501(c)3 organization. Insider's tip - To ensure your employment is counting towards your forgiveness, submit the PSLF Employment Certification Form annually.
4. Repeat 120 times (or ten years if you are making consecutive payments) - this means that for folks that started doing this on the first date available in 2007 and did all the above steps accurately, the first forgiveness will be granted in October 1, 2017.  Insider's tip - And don't be late on your payments, otherwise that payment doesn't count!
5. Prove it! - When it is time for your loans to be forgiven, the responsibility will be on you to prove that you did all the above accurately 120 times, so keep good records.  Insider's tip - Don't leave your employer until your loans have been forgiven in full!  This may put your forgiveness at risk.  

More about student loan forgiveness for other folks who don't work in the government or for a charitable organization next time!