Serve with Purpose, Forgive with Pride.

In the pursuit of a higher education, many individuals find themselves burdened by student loans. Fortunately, for those dedicated to public service, there exists a valuable opportunity to alleviate this financial strain – Public Service Loan Forgiveness (PSLF).

The Public Service Loan Forgiveness (PSLF) is a program designed to help individuals employed full time in public service, such as teachers, nurses, social workers, and government employees. Managing student loan debt can be particularly challenging.

What is Public Service Loan Forgiveness (PSLF)?

Public Service Loan Forgiveness (PSLF) is a federal program designed to forgive the remaining balance on eligible Direct Loans after borrowers have made 120 qualifying monthly payments while working full-time for a qualifying employer. This program incentivizes individuals to pursue careers in public service by offering a pathway to debt relief.

Who Qualifies for PSLF?

To qualify for PSLF, borrowers must meet the following criteria:

• Employment in Public Service: Borrowers must work full-time for a qualifying employer, which includes government organizations at any level (federal, state, local, or tribal), non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and other types of non-profit organizations that provide qualifying public services.
• Qualifying Loans: Only Direct Loans are eligible for PSLF. Borrowers with other types of federal student loans may consolidate them into a Direct Consolidation Loan to qualify.
• Repayment Plan: Borrowers must be enrolled in an income-driven repayment plan, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), or Income-Contingent Repayment (ICR).
• 120 Qualifying Payments: Borrowers must make 120 qualifying monthly payments while working full-time for a qualifying employer. These payments do not need to be consecutive but must be made under a qualifying repayment plan.

Benefits of PSLF:

• Debt Relief: The primary benefit of PSLF is the forgiveness of the remaining balance on eligible Direct Loans after making 120 qualifying payments. This can result in significant savings for borrowers, eliminating the burden of student loan debt.
• Tax-Free Forgiveness: Unlike some other forms of loan forgiveness, the forgiven amount under PSLF is not considered taxable income, providing additional financial relief to borrowers.
• Career Flexibility: PSLF allows borrowers to pursue careers in public service without being burdened by excessive student loan debt. This flexibility empowers individuals to follow their passion for making a positive impact in their communities.

Public Service Loan Forgiveness (PSLF) offers a valuable opportunity for individuals in public service professions to achieve financial freedom while pursuing their passion for serving their communities. By understanding the eligibility criteria, benefits, and application process of PSLF, borrowers can take advantage of this powerful tool for debt relief. At AVED Consulting Firm, we are committed to supporting public servants in navigating their financial journey and unlocking the benefits of PSLF. Reach out to us today to learn more about how we can assist you in achieving your financial goals.