What is the Public Service Loan Forgiveness (PSLF) program and for whom is it intended?

• A. Loans forgiven after qualifying payments while working in a public service job.
• B. Tax credit for veterans.
• C. Mortgage forgiveness for public housing.
• D. Immediate forgiveness for any federal loan after 5 years.

Answer: (A)

Public Service Loan Forgiveness is a program that forgives the remaining balance on Direct Loans after you make 120 qualifying payments while working full-time for a qualifying public service employer. It is designed to help people who commit to careers in public service—such as government agencies or eligible nonprofit organizations (often 501(c)(3))—by canceling the loan after a decade of consistent, on-time payments under a qualifying repayment plan. In other words, you continue paying while in public service, and after reaching the 120 qualifying payments, any remaining loan balance can be forgiven. It’s not a general tax credit, nor mortgage forgiveness for housing, and it isn’t immediate forgiveness after a fixed period.