Work For Nonprofit Student Loan Forgiveness

Student loan forgiveness is available to many people who work for eligible organizations. To be considered for student loan forgiveness, you must work for a qualifying employer and meet certain requirements. The tax implications of your forgiven debt will depend on your specific circumstances, but in general, you won’t have to pay taxes on the canceled balance if it exceeds the value of any scholarships or grants that you received toward the education costs.

Work For Nonprofit Student Loan Forgiveness

Do you have student loans?

Before you can even think about applying for student loan forgiveness, you will need to have student loans. If you don’t have any, then this entire post is pointless and we can just stop reading now and move on to something else.

If you do have student loans, the next step is figuring out if they are eligible for forgiveness under the Public Service Loan Forgiveness program or if they can be consolidated into an income-driven repayment plan (IDR). You may also qualify for other types of forgiveness for students who were defrauded by their school or were given inaccurate information about their loan options from their college or university.

OK, I have student loans– what now?

If you work for a nonprofit organization, chances are good that your employer qualifies. If you aren’t sure whether this is the case, ask a trusted colleague or supervisor about their experience working for the same organization. If they don’t know what kind of student loan forgiveness options are available at their place of employment, try to get more information from human resources or someone in management.

If your employer doesn’t qualify according to this definition and you’re unable to find another job in time to cancel all or most of your loans before beginning repayment, there may be other ways for you to pursue student loan forgiveness—but it’s important not just because it can help ease some of the financial burden on those who need it most but also because it demonstrates compassion within our communities by helping people who have otherwise struggled under some very difficult circumstances due out not only on their own shoulders but those around them too!

How do I know if the organization I work for is non-profit?

If you’re not sure whether an organization is a non-profit, ask. If you’re working for a government agency or another type of for-profit business and are unsure about the status of your employer, check out these resources to help clarify:

  • Visit the organization’s website and look for “non-profit” or “501(c)(3)” status in their contact information section.
  • Visit to search for information on non-profits (look under “Companies” on the left side of the screen). You can also search by location (click Advanced Search).
  • Look at annual reports from local charities that list their revenue and expenses as well as other key financial statistics such as net assets and fund balances (e.g., Community Foundation Silicon Valley 2012 Annual Report). You may be able to find these online or see if they’re available at your local library before deciding which nonprofit will give you more bang for your buck when it comes time to fill out taxes!

Are there any other ways to qualify?

In addition to working for a 501(c)(3) organization, there are other ways that you can meet the requirements necessary to qualify for student loan forgiveness.

If you work for the government or a non-profit organization, you can also be eligible.

A public service job is defined as any work performed by an individual who is employed by one of the following types of organizations:

  • A federal, state (including District of Columbia), or local government agency;
  • A tax exempt charitable or educational institution that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on;
  • An organization engaged in foreign or domestic commerce, not including banking; insurance; higher education; research with respect to medicine or law (including agricultural sciences); public accounting; advertising and publicity; publishing activities with respect to books which do not treat sex problems from medical points of view except incidentally thereto in connection with bona fide medical textbooks containing scientific treatment on those subjects only

How much time do I have to work for a non-profit to qualify?

The time requirement to qualify for student loan forgiveness varies by program. Some programs require 10 years of employment with a qualifying employer, while others require 5 years or 3 months.

For example, the Public Service Loan Forgiveness Program (PSLF) requires you to work full-time at an eligible nonprofit organization for at least 120 consecutive days during any period of 12 months within 20 years from when your loans first came out of repayment. The Income-Based Repayment (IBR) program has more flexible requirements: you can qualify if you have no federal loans and are making 120 payments on income-driven repayment plans.

Do I have to pay taxes on my forgiven loans?

The IRS will treat your forgiven student loan debt as taxable income. The amount of your forgiven student loan is subject to taxes, even if the debt was discharged through bankruptcy or other means.

For example, if you have $50,000 worth of eligible loans and are granted total forgiveness after 20 years on a repayment plan (in which monthly repayments were made), then you’ll be liable for $10,000 in taxes ($50k x 20%).

Because this situation can be financially devastating with little warning and preparation time, it’s wise not to wait until tax season approaches before seeking advice from an accountant or financial advisor.

You can qualify for student loan forgiveness as long as you choose an eligible employer and meet all of the employment requirements.

  • You can qualify for student loan forgiveness as long as you choose an eligible employer and meet all of the employment requirements.
  • To qualify, you must work for a qualified non-profit employer for 10 years or more.


In conclusion, it is possible to get your student loans forgiven if you work for a non-profit organization. However, there are certain requirements that must be met before you can qualify. If you’re not sure if the organization you’re working for qualifies as non-profit, make sure to ask them! Also keep in mind that there are other ways besides employment at a qualifying employer (such as teaching at an eligible school) that can help reduce your debt burden while also benefiting society as a whole

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