According to the CFPB, almost 1 in 4 people work in jobs that would qualify for federal student loan debt forgiveness. And if you work in the public sector, chances are you may be one of them.
Federal student loan borrowers that work in the public sector may be able to have their debt eventually wiped away through the Public Service Loan Forgiveness (PSLF) Program. The PSLF Program is meant to encourage to take public service jobs, like government or nonprofit work (recognizing that recent college grads may be turned off from taking lesser-paying jobs if they have tons of student loans).
How exactly does Public Service Student Loan Forgiveness work?
After making 120 qualifying consecutive student loan payments while working in the public service industry, your direct federal student loans would be forgiven. For any of your student loan payments to qualify toward the PSLF Program, you must be working in the public service sector when you enroll in the forgiveness program, when you make a payment and when your debt is forgiven. You can do this through 10 years of consecutive public service and student loan payments or by splitting it up over time.
What kinds of work count as public service?
Under the PSLF rules, you must be a full-time employee (at least 30 hours a week) at a federal, state or local government organization or non-profit organization. This can include a whole host of careers, like military service, law enforcement, public school administrators and educators, and public health careers, like working with the disabled or elderly.
Can I lower my monthly payments and still have my debt forgiven?
Since public sector jobs may pay less than typical private sector work, you can still enroll in the federal government’s Income-Based Repayment Plan or other repayment programs based on your income and have your federal student loans forgiven. Don’t worry: you’ll still qualify for the Public Service Loan Forgiveness Program if you’re using a standard repayment plan – just be sure your monthly student loan payment is manageable based on your income.
What are my other debt-forgiveness options?
In addition to the federal Public Service Loan Forgiveness (PSLF) Program, a few states are offering debt forgiveness to college grads focused on specific sectors of work:
New York State Loan Forgiveness Program: College grads who are residents of New York State may qualify for loan forgiveness if they choose careers in social work, nursing or public service law.
North Carolina Forgivable Education Loans for Service (FELS): If you’re a resident of North Carolina and willing to work in one of the critical job areas that need qualified candidates, you could have your student loans forgiven. Jobs include pharmacists, social workers, physicians and nurses, and teachers.
Other states, including Texas and Florida, offer student loan forgiveness programs to teachers who are specifically focused on critical areas like STEM (Science, Technology, Engineering, Math) or special education.
This content was originally posted by "stephanie" on "studentloanhero"
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