U.S. Department of Education Announces Public Service Loan Forgiveness (PSLF) Program Overhaul for Student Loan Debt
If you are employed by a nonprofit or government and have student loan debt, you may be eligible for loan forgiveness, cancellation, and/or consolidation of federal student loans under the Public Service Loan Forgiveness program (PSLF). Created under the College Cost Reduction and Access Act of 2007, PSLF allows borrowers who work full time for nonprofits and government agencies to have their outstanding debt forgiven tax-free on Federal Direct Loans, after making 120 qualifying monthly payments under a qualifying repayment plan. Borrowers could apply for forgiveness under PSLF starting in October 2017. On October 6, 2021, the U.S. Department of Education announced a temporary expansion to provide more borrowers access to forgiveness. Nonprofit workers who believe they are eligible for forgiveness or wish to have their employment at their current charitable nonprofit employer certified should take action through the PSLF Help Tool, available at www.StudentAid.gov/PSLF.
The PSLF Program forgives the remaining balance on Direct Loans after 120 qualifying monthly payments have been made under a qualifying repayment plan while working full-time for a qualifying employer, which includes most 501c3 museums. The form can be found here. More information on the PSLF can be found here.
Much of the information above is taken from the National Council of Nonprofits website, www.councilofnonprofits.org