 TITLE: What Is Public Service Loan Forgiveness? CONTENT: How Does Public Service Loan Forgiveness Work?\n----------------------------------------------\nThe PSLF program is designed to ease the debt burden of college graduates who take public sector jobs, such as teaching or social work, that typically pay less than similar jobs in the private sector. The program was created by an act of Congress in 2007 to encourage more students to enter public service careers.\nBefore you get too excited at the prospect of wiping out all your student debt, however, it's important to know the PSLF does not forgive your entire student loan. It forgives any balance remaining on your federal direct loans once you've made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. (As you can see, there are a lot of qualifications to meet.) Still, as of June 2020, the average loan amount forgiven under the program was $61,592—not exactly pocket change. If you have a federal student loan, it's worth learning more about how PSLF works. END