Question 1

How does Public Service Loan Forgiveness work?

Accepted Answer

PSLF forgives the remaining balance on Direct Loans after you make 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer -- government agencies, 501(c)(3) nonprofits, or certain other public service organizations. The forgiven amount is tax-free.

Question 2

Will my student loans be forgiven after 20 years?

Accepted Answer

Yes, if you are on an income-driven repayment plan. Under IBR, PAYE, and the SAVE plan, any remaining balance is forgiven after 20 years of payments for undergraduate loans, or 25 years for graduate loans. The forgiven amount is currently tax-free through 2025 under the American Rescue Plan Act.

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