Public Service Loan Forgiveness Program

Public Service Loan Forgiveness Program. It’s a great program to promote public service in Philadelphia and it is “FREE.” The article below is a great explanation of the Public Service Loan Forgiveness Program and it contains several links at the bottom that explains how to get involved. The gist of the program is that it erases all federal loans after ten (10) years of public service, even if a borrower was only paying interest on the student loans during the ten (10) year repayment period. IMMEDIATE RELEASE: August 28, 2013 CONSUMER FINANCIAL PROTECTION BUREAU LAUNCHES TOOLKIT TO HELP TEACHERS AND 

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Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) Program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. What is forgiven? The remaining interest and principal of the borrowers loans are forgiven. How many payments are required? The loan forgiveness occurs after 120 monthly payments made on or after October 1, 2007 on an eligible Federal Direct Loan. Periods of deferment and 

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Other Profession-Related Loan Cancellation Programs

The Department of Education administers a loan-forgiveness program for certain child care providers with FFELs or Direct Loans.[1] Under this program, borrowers who have received an associate’s or bachelor’s degree in early childhood education or child care and who are providing full-time child care services that serve certain low-income communities are eligible for forgiveness of up to 100% of their total eligible loans. Only loans made after October 7, 1998, qualify.  In January 2004, the Department of Education published the application for this cancellation program.[2] The 2008 HEA reauthorization law created a number of new job-related cancellation programs, including loan 

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