The Department of Education, following an executive order from President Trump, has drafted major changes to the Public Service Loan Forgiveness Program.
Plans to shake up the student loan forgiveness program aren’t set in stone just yet. The Education Department is taking public comments about the proposed regulations before finalizing the rules, which are expected to be published and take effect next year.
What is the Public Service Loan Forgiveness (PSLF) program?
If you accumulated years of student-loan debt, you could get a large portion of what you owed removed if you worked in the public sector. Congress passed the Public Service Loan Forgiveness (PSLF) program in 2007 as a means for college graduates to enter the workforce as public employees.
If you worked in the public sector at the local, state, or federal level, your student loans would be eligible for forgiveness after they made payments for 10 years.
What are some careers in public service?
There are many jobs that serve the public. If you aren’t familiar with those careers, here are some examples:
Protective Services
Government servant
Educator
What are the proposed changes to the Public Service Loan Forgiveness (PSLF) program?
The Department of Education has made several changes to the PSLF program. New rules won’t be finalized until next year.
Here is what could change:
What can borrowers and employers do about the PSLF program?
Those in the PSLF program can be proactive by doing the following:
-USA TODAY Brandon Girod contributed to this report.
This article originally appeared on Austin American-Statesman: Major changes could be coming to the student loan forgiveness program under Trump admin
Reporting by Marley Malenfant, Austin American-Statesman / Austin American-Statesman
USA TODAY Network via Reuters Connect
