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Obtaining Student Loan Discharges Under The Public Service Loan Forgiveness Program Could Be Harder For Attorneys
Source Date:
Wednesday, February 21, 2018
Categories:
The Public Service Loan Forgiveness (PSLF) program began in 2007 with the intent of providing a financial cushion for those who chose to work in public service. You make 120 months of income-based payments while working for a qualified organization (such as the government or a 501(c)(3) entity). Upon completion, the remaining balance of your federal loans are forgiven without having to pay income tax on the debt cancellation.
In recent years, PSLF has been attacked as a poorly designed law that incentivizes moral hazard because schools and students have no incentive to minimize borrowing. Politicians from both major parties have proposed to amend or end PSLF. This made those already on the program wonder as to whether the government would honor the loan forgiveness or put up all kinds of obstacles to frustrate their attempts.