New data from the U.S. Department of Education shows some 610,000 student loan borrowers have received some $42 billion in loan forgiveness since 2021 through a federal program designed for public employees.

Public Service Loan Forgiveness, or PSLF, covers public employees such as teacher, firefighters and members of law enforcement, as well as those who work for non-profit organizations. It allows for remaining federal student loan balances to be forgiven after a person makes 10 years of payments (120 qualifying monthly payments.)

Between October 2021 and May 2023, 9,200 borrowers in Alabama received nearly $696 million in loan forgiveness, averaging more than $75,000 per borrower.

Do you qualify for PSLF?

To qualify for PSLF, you must be:

• be employed by a U.S. federal, state, local, or tribal government or not-for-profit organization (federal service includes U.S. military service);
• work full-time for that agency or organization;
• have Direct Loans (or consolidate other federal student loans into a Direct Loan);
• repay your loans under an income-driven repayment plan; and
• make 120 qualifying payments.

You can use the PSLF tool to help you determine if you qualify.