Which of the following actions can lead to federal loan forgiveness?

Working in public service is a path that can lead to federal loan forgiveness, particularly through programs like Public Service Loan Forgiveness (PSLF). This program is designed specifically for borrowers who work full-time in qualifying public service jobs, which include positions at government organizations and non-profit entities. Borrowers must make 120 qualifying monthly payments under a qualifying repayment plan while employed in such roles to be eligible for forgiveness of the remaining balance on their Direct Loans.

On-time payments, while essential for maintaining good standing on loans and preventing default, do not automatically lead to forgiveness in most circumstances. Loan consolidation can make loans more manageable or allow for income-driven repayment plans, but it doesn’t guarantee forgiveness. Finally, going back to school can provide opportunities for deferment or change in loan status, but it does not inherently lead to loan forgiveness without specific qualifying criteria being met. Working in public service aligns directly with established programs intended for forgiveness, making it the correct choice in this context.