Earlier this week, officials with the Department of Education held a conference call to discuss the defunding of the Public Service Loan Forgiveness program. As you know, the 2018 White House budget calls to eliminate the program. The goal in cutting the program is to save about $859 million.
The mere threat of eliminating this program, which forgives your entire federal Direct Loan balance after making 120 qualifying payments, has some borrowers stressing over the possibility of losing the chance at student loan forgiveness.
Fear not, if you were one of those who were stressing. During the conference call, the education officials clarified that the program would be eliminated only for those borrowing loans after July 1, 2018.
Here’s the actual text from the budget:
What that means is that if you are already on track to have your loans forgiven, like the roughly 550 thousand other Americans, you can rest easy. You remain eligible for forgiveness.