If you are counting on Public Service Loan Forgiveness - the federal program that forgives your student loan debt after 10 years of qualifying work in public service and 120 consecutive student loan payments - then pay close attention. As first reported by the New York Times, a student loan borrower's acceptance into a federal student loan forgiveness program may not be binding and could be rescinded by the U.S. Department of Education. Four student loan borrowers (and the American Bar Association) sued the Education Department to seek reinstatement of their eligibility for the Public Service Loan Forgiveness Program. The plaintiffs claim they initially qualified for Public Service Loan Forgiveness, only to have the decision subsequently reversed. In order to be eligible for Public Service Loan Forgiveness, you have to make the majority of the 120 student loan repayments under an income-driven repayment plan.

Source: Forbes April 01, 2017 13:30 UTC