Forgiveness is the release of a borrower from the financial responsibility to repay all or a portion of a loan. Typically, student debt is forgiven based on a working as a teacher or in an area of public service. Borrowers must document specific requirements in order to qualify. For instance in the Public Service Loan Forgiveness Program, a borrower must:
- work for a government agency or for certain types of nonprofit organizations
- work full-time for that agency or organization
- have Direct Loans (or consolidate other federal students loans to qualify)
- repay your loans on an income-driven repayment plan; and
- make 120 qualifying payments
Each year borrowers wanting to qualify for the PSLP must complete Employment Certification Form yearly or when the borrower changes employers.