The Truth About PSLF.

(Hint: The numbers show fantastic news.)

(Photo by Andrea Piacquadio from Pexels)

Introduction

The naysayers will spout the refrain that PSLF is a government program run amok.

Too much paperwork and too little forgiveness!

I call bullshit.

All the hand wringing about the program is noise. We need to find the signal.

Let me show you the truth about the PSLF program.

PSLF Basics

I wrote a full article on the basic requirements of the PSLF program, but here they are in a nutshell.

If you work full-time (>30 hours/week)

1. for a qualifying employer (government or non-profit) and
2. make enough qualifying payments (120)
3. on your qualifying loans (Direct Loans)
4. via a qualifying payment plan (Income-Driven Repayment, or IDR plan)

then you will receive full forgiveness on those student loans.

Unfortunately, the Department of Education screwed the pooch when they rolled out the program in 2007. NPR sums it up best.

Here’s the problem.

The first several years this program was in effect, the Ed Department and loan…