The Public Service Loan Forgiveness (PSLF) Program came about in 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full time in public service or nonprofit jobs.

 

Under this program, you may qualify for forgiveness of the remaining balance due on your eligible federal student loans after you have made 120 payments on those loans under certain repayment plans while employed full time by certain nonprofit employers who were recognized in the United States as tax exempt under section 501(c)(3) of the Internal Revenue Code.

 

Since you must make 120 monthly payments on your eligible federal student loans after October 1, 2007 before you qualify for the loan forgiveness, the first cancellations of loan balances will not be granted until October 2017.

 

Remember, graduates save the most if they get started early—they might even be able to lower monthly payment as they work toward loan forgiveness, so it pays to start now.