Public Service Student Loan Forgiveness

Q: If I work for the fire department am I eligible for the public service student loan forgiveness program? Also what type of student loans will this kind of loan forgiveness program remove?

A: If you are a full time employee in the public safety field, such as police and fire, you may be eligible for the Public Service Student Loan Forgiveness Program. However, the Public Service Student Loan Forgiveness Program has specific restrictions and requirements. Your student loans are not “removed” completely with this program, but rather the remaining interest and principal of the loans are forgiven if you meet the programs criteria and qualifications.

For instance, the Public Service Student Loan Forgiveness program discharges any remaining federal student debt only AFTER 10 years of full-time employment in public service, with the borrower having made 120 payments as part of the Direct Loan program. In addition, only student loan payments made on or after October 1, 2007 count toward the required 120 monthly payments for the program.

Only federal student loans are eligible for the Public Service Student Loan Forgiveness program, private student loans cannot be forgiven through this program. The following federal student loan types are eligible for this program: Federal Direct Subsidized Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans and Federal Direct Consolidation Loans.