Military & Federal Employee Loan Forgiveness: What They’re Not Telling You

Are You Leaving Forgiveness on the Table?

If you've served in the military, worked in a federal agency, or done both—you may be eligible to wipe out your student debt. But many don’t know these programs exist, let alone how to apply. And with federal collections resuming in May 2025, waiting could cost you thousands.

Who Qualifies?

Military and federal forgiveness programs cover a range of roles:

• Active-duty service members & veterans (qualify under PSLF or Perkins Cancellation)
• National Guard members (eligible for specific state and federal repayment options)
• Federal civilian employees (FERS and agency-specific repayment incentives)
• Perkins Loan holders in military service (up to 100% cancellation)

Benefits That Add Up Fast

• Public Service Loan Forgiveness (PSLF): Forgive your entire loan balance after 120 payments while serving full-time.
• Perkins Loan Cancellation: Earn incremental forgiveness for each year of military service
  (15%–30% annually).
• Federal Repayment Incentives: Some agencies repay up to $10,000/year for critical roles.
• State Programs: Many offer extra forgiveness for National Guard or public safety service.

But Here’s the Catch…

Many borrowers never apply—or get rejected—because they:

• Didn’t consolidate into a Direct Loan first
• Missed employment certification steps
• Used the wrong repayment plan (not IDR)
• Didn’t know their agency had its own program

Real-World Example

David, a disabled veteran, had $42K in student loans. He’d been making payments for years but didn’t know his National Guard service counted toward PSLF. After switching to a qualifying IDR plan and certifying his service retroactively, he qualified for forgiveness in under 12 months.

How to Apply (and Actually Get Approved)

1. Consolidate to Direct Loans if needed.
2. Enroll in an IDR plan like SAVE or PAYE.
3. Submit the PSLF Employment Certification Form annually.
4. Check for Perkins cancellation if you served in hostile areas.
5. Ask your federal agency about their loan repayment programs.

💥 Don't wait—collections restarted in May 2025. Check your eligibility now and avoid wage garnishment or tax refund seizure.

👉 Check if you qualify for PSLF or Perkins Forgiveness

Frequently Asked Questions (FAQs)

Do military members automatically qualify for Public Service Loan Forgiveness (PSLF)?

No, not automatically. You must:

• Have Direct Loans
• Be on a qualifying income-driven repayment (IDR) plan
• Make 120 qualifying monthly payments while on active duty or working for a government agency

What if I served in a combat zone, do I get special benefits?

Yes. If you have Perkins Loans, you may qualify for Up To 100% Cancellation for serving in a hostile fire or imminent danger area. Also, $0 IDR payments made during deployment count toward PSLF.

I’m a federal employee. How does loan forgiveness work for me?

As a full-time federal employee, you’re eligible for PSLF if you:

• Have eligible loans and repayment plan
• Work for a qualifying federal agency
• Certify your employment yearly and make 120 payments

Some agencies also offer Federal Student Loan Repayment Assistance (up to $10,000/year, $60,000 total), though it’s discretionary.

Do VA, DOJ, or TSA workers count toward PSLF?

Yes. All are considered Qualifying Employers under PSLF. Whether you're a nurse in the VA, an agent in the TSA, or an attorney in the DOJ—Your Service Counts.

What types of loans qualify for military or federal forgiveness?

Only Direct Loans qualify for PSLF. If you have FFEL or Perkins Loans, you must consolidate them into a Direct Consolidation Loan to become eligible.

Can military service be used for both PSLF and Perkins Cancellation?

Yes—but not at the same time. You must choose one benefit per period of service. For example, if you're using service years to cancel Perkins Loans, those months won’t count toward PSLF.

What if I’m in default—can I still get forgiveness?

Yes. First, you'll need to Rehab or Consolidate your loans to bring them into good standing. Once restored, you can enroll in an IDR plan and begin working toward forgiveness again.