Public Service Loan Forgiveness (PSLF)

If you’re employed by a government or not-for-profit organization, you might be eligible for the PSLF Program. The PSLF Program forgives the remaining balance on your Direct Loans after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, while working full-time for an eligible employer.

According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. You won’t be taxed by the federal government, but your state may tax you. Any debt forgiven because of PSLF won’t create a federal tax liability for you. For more information, check with the IRS or a tax advisor. Learn more about the PSLF process.