Which student loans qualify for PSLF forgiveness? FAFSA vs private loans confusion

Only federal Direct Loans qualify for PSLF - private loans are NEVER eligible for forgiveness through this program. This includes Direct Subsidized, Direct Unsubsidized, Direct PLUS Loans, and Direct Consolidation Loans. If your son even remotely thinks he might pursue public service, take the federal loans despite the higher interest rate. The complete forgiveness of remaining balance after 120 qualifying payments while working for an eligible employer is worth far more than the interest savings from a private loan. I navigated this successfully - had $42,000 forgiven after 10 years working at a non-profit hospital. The key things to know: 1. Must work for qualifying employer (government, 501(c)(3) non-profit, etc) 2. Must make 120 qualifying payments (they don't have to be consecutive) 3. Must have Direct federal loans (some older federal loans like FFEL need to be consolidated first) 4. Must be on an income-driven repayment plan Keep detailed records of everything - employment certification forms, payment history, etc. The new PSLF portal has made things easier, but documentation is still crucial.

BE CAREFUL!!! The PSLF program is a NIGHTMARE to actually get forgiveness from!!! I worked for state government for 8 years and thought I was making qualifying payments THE WHOLE TIME only to find out my loan servicer NEVER put me on the right payment plan!!!! All those payments didn't count and I had to START OVER!!!! The government LIES about how easy this is. Check EVERYTHING three times and get WRITTEN CONFIRMATION that your loans qualify and your employer qualifies and your payment plan qualifies. Don't trust ANYONE on the phone! And yes ONLY federal direct loans qualify. Private loans are NEVER forgiven this way no matter what the lender promises you.

I work in financial aid counseling, and this is definitely something to consider carefully. To be extremely clear: ONLY Federal Direct Loans qualify for PSLF. Private loans (like SoFi) do not qualify for any federal forgiveness programs. Here's why the federal loans might be worth the higher interest rate: 1. PSLF forgiveness is tax-free (unlike some other forgiveness programs) 2. Federal loans offer income-driven repayment options private loans don't 3. Federal loans have death/disability discharge that private loans lack 4. Federal loans currently have more generous deferment/forbearance options The PSLF temporary waiver recently helped many borrowers, but even with improved processes, you must follow very specific rules. Your son would need to: - Work full-time for qualifying employers for at least 10 years - Have only Direct federal loans (not private) - Be on an income-driven repayment plan (not standard or extended) - Submit employment certification forms regularly If there's a chance your son will work in government, education, healthcare, or non-profits, federal loans provide much more flexibility and potential forgiveness.

I spent 4 hours on hold with Federal Student Aid last week trying to get information about PSLF for my daughter, and when I finally got through, they transferred me twice and then disconnected the call! Tried again yesterday and couldn't even get in the queue. The website just gives generic information and I need specifics for her situation with mixed loan types. Has anyone found a better way to actually talk to someone knowledgeable about PSLF? This is so frustrating when we're trying to make important financial decisions.

just wanted to add that the amount of loans forgiven thru PSLF is unlimited! i have a friend whos a social worker with $97k in loans and shes on track to get ALL of it forgiven after her 10 yrs. its not capped at the $5500 or whatever. but yeah like everyone said its only for the federal direct loans not private.

Another IMPORTANT thing no one mentioned! You need to be on an INCOME-DRIVEN repayment plan for the payments to count toward PSLF! If you're on the standard 10-year plan, those payments DON'T COUNT! Well they do NOW with the temporary waiver but normally they DON'T! And you have to RECERTIFY your income EVERY YEAR or they kick you off the plan and those payments don't count either!!! This whole system is DESIGNED to make you fail!

my cousin did this & got like $30k forgiven after working as a public school teacher. she said the key was keeping ALL her paperwork & submitting the employer certification form every year rather than waiting till the end. also she put reminder in her calendar to recertify income for her repayment plan every year on time. basically u have to be super organized but it does work!

So what happens if my daughter starts out working in public service but then switches to private sector before reaching the 10 years? Do those payments just not count for anything?

Thank you everyone for your helpful responses! This has been really eye-opening. We're going to go with the federal Direct Loans despite the higher interest rate since there's definitely a possibility he'll work in the public sector. The potential for forgiveness seems worth it, especially with no cap on the forgiveness amount. I'll make sure we keep meticulous records from the beginning and submit the employer certification forms regularly. I'm also going to have him read through this thread so he understands the importance of being on the right repayment plan and recertifying income annually. It's frustrating that the system is so complex, but I appreciate all your advice navigating it!

Smart decision going with the federal loans! Just wanted to add one more tip that helped me - consider setting up automatic payments on your federal loans once he graduates. You get a 0.25% interest rate reduction, and more importantly, it ensures you never miss a payment that could disqualify you from PSLF. Also, once he starts working, have him submit the Employment Certification Form (ECF) within the first few months of employment rather than waiting. This way you'll know immediately if there are any issues with his employer qualifying or his loan types, rather than finding out years later. The peace of mind is worth it! The PSLF Help Tool on StudentAid.gov is actually pretty good for walking through the application process step by step. Much better than trying to navigate the phone system. Good luck to your son!

As someone who went through the PSLF process myself, I want to emphasize how crucial it is to understand that ONLY federal Direct Loans qualify - never private loans. I made the mistake early on of refinancing some of my federal loans with a private lender to get a lower rate, and those became permanently ineligible for PSLF. Here's what I wish I'd known from the start: Even though federal loans typically have higher interest rates, the potential for complete loan forgiveness makes them invaluable if there's ANY chance your son will work in public service. I worked as a government attorney and had about $85,000 forgiven after my 120 qualifying payments. A few key things that saved me headaches: - Submit Employment Certification Forms annually, not just at the end - Double-check that you're on an income-driven repayment plan (IDR) - Keep digital copies of EVERYTHING - Use the PSLF Help Tool on StudentAid.gov rather than calling The program has gotten much better since the temporary waiver and recent improvements. Your decision to go with federal loans is absolutely the right call if public service is even a remote possibility for your son's career path.

One thing I haven't seen mentioned yet is that there are other federal loan forgiveness programs beyond PSLF that your son might want to consider too. Teacher Loan Forgiveness can forgive up to $17,500 after 5 years of teaching in low-income schools (vs 10 years for PSLF), and there are profession-specific programs for nurses, doctors, lawyers doing public interest work, etc. The key advantage is that ALL of these programs require federal loans - private loans don't qualify for ANY federal forgiveness programs. So even if your son doesn't end up qualifying for PSLF specifically, having federal loans keeps other doors open. Also want to echo what others said about the income-driven repayment plans. Even without forgiveness, these can significantly lower monthly payments based on income, which private loans don't offer. Federal loans just give you so much more flexibility throughout your career. Your decision to prioritize federal loans over the lower private rate is definitely the smart long-term strategy!