Student loan indebtedness is always a hot topic these days, and there’s been a lot of media coverage recently about various federal loan forgiveness, discharge, and cancellation programs. Every program is a little bit different, and it can be downright confusing to figure out which program, if any, might work for you. We’ve decided it’s time to provide you with a summary of what’s out there.
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Over the years, I’ve spoken with many college students and graduates whose greatest wish is a magic wand to make their student loans disappear. While magic wands are a rare commodity in college finance, there does exist a tool for making your loans vanish into thin air. It is called Public Service Loan Forgiveness.
The Public Service Loan Forgiveness (PSLF) program was created by the federal government in 2007 to encourage graduates to fill high need public service positions, or at least to prevent high student loan debt from discouraging graduates to do so. The program forgives remaining loan balances for borrowers who have made ten years of payments on their student loans while working in public service.
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