How Can I Get A Student Loan Forgivenes
There are many options for federal student loan forgiveness. The best option for you may be dependent on your income, debt burden and other factors.
Federal student loans are forgiven once you work in a public sector job (or for a non-profit) for 10 years and make 120 income-based payments.
In certain circumstances, federal student loans can be forgiven. For example, if you work in a public sector job (or for a non-profit) for 10 years and make 120 income-based payments.
Public Service Loan Forgiveness (PSLF) is a federal program that allows qualifying borrowers to have their student loans forgiven after making 120 income-based monthly payments while working full time in an approved public service job.
PSLF is a federal program that allows qualifying borrowers to have their student loans forgiven after making 120 income-based monthly payments while working full time in an approved public service job.
There are two qualifications for PSLF:
- You must be a federal direct student loan borrower, meaning you borrowed your loan directly through the federal government.
- You must be working full time (at least 30 hours per week) at an eligible organization, which includes non-profit organizations but also profit companies that provide certain types of public services or benefit low-income communities.
Qualifying borrowers must work in one of the following jobs to have their loans forgiven under PSLF:
- Public Service Jobs
- Non-profit jobs
- Government jobs
- Military service
- Teacher jobs (including adjunct professors)
- Law enforcement jobs (including federal air marshals, TSA agents and customs/border patrol officers)
- Volunteer work
Public interest law or public health careers may qualify if they meet the following criteria:
- Your employer is a 501(c)(3) non-profit organization. If you work for a private nonprofit organization or a government agency, your job must be “nonprofit” in nature and you must be employed by an entity that qualifies as being tax exempt under section 501(c)(3). You can find out more about this provision on the IRS website or by calling them directly at 800-829-1040; these organizations include religious institutions as well as healthcare providers such as hospitals and clinics. It is important to note that if you are working in any capacity other than full time (such as on an internship), your employer may not have enough revenues from which to grant you forgiveness after 10 years of employment.
Some federal loans are eligible
Only federal student loans are eligible for forgiveness. Federal direct loans include:
- Graduate PLUS
- Consolidation of undergraduate and graduate loans (Direct PLUS and Direct Unsubsidized)
- Consolidation of undergraduate and parent loans (Direct PLUS Consolidation)
The borrower must work full-time
The borrower must work full-time. This is defined as 30 hours a week, and there are no exceptions to this rule. If you work less than 30 hours per week, then you will be considered part-time and will not be eligible for PSLF.
There must be an income-driven repayment plan on the loan.
You must have an income-driven repayment plan on the loan in order to qualify for student loan forgiveness. This means you can’t just make 120 qualifying payments and suddenly be forgiven—you need to meet additional requirements. If you’re eligible, your monthly payment will be 10% of your discretionary income and any remaining balance after 25 years will be forgiven.
The other requirement is that you work full-time in a public service job or employment at a non-profit organization (including government or military). If you have more than $57,000 in federal student loans, then your remaining balance will be forgiven after making 30 years worth of qualifying payments (10 years for borrowers with less than $57k). For example:
- A borrower who has $52K in debt would pay 9% of their discretionary income for 10 years before having their remaining debt forgiven
The borrower must have made 120 qualifying payments
The borrower must have made 120 qualifying payments
In order to be eligible for Public Service Student Loan Forgiveness, you must have made 120 qualifying payments on an income-driven repayment plan. These include the following:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
Borrowers who work in public service jobs can have their federal loans forgiven after 10 years of payments.
The federal public service loan forgiveness program is a government initiative that allows borrowers who work in public service jobs to have their federal loans forgiven after 10 years of payments.
Public servants who qualify for this program include teachers, doctors, nurses, law enforcement officers and other employees of local, state and federal governments. If you meet all the requirements and want to take advantage of this opportunity, here’s what you need to know:
- Forgiveness is only available for certain kinds of loans (including Stafford Loans). You cannot receive forgiveness if your debt was acquired through another type of loan such as a Perkins Loan or a private student loan.
- To be eligible for forgiveness under PSLF, you must make 120 consecutive payments on your Direct Loan over 10 years while working full-time at an eligible employer. After making 120 payments on time (without any delinquencies), all remaining balance on your Direct Loan will be forgiven at once!
If you’re interested in having your federal student loans forgiven, we recommend checking out the PSLF program. You can find more information on this and other options for federal forgiveness by visiting our website or calling us at (800) 773-0888.