Sometimes student loans can be overwhelming, and it may be a struggle to completely pay them off. Specifically, this article deals with federal student loans. The standard repayment program for a federal loan is ten years, in which a borrower pays monthly to remove the debt. However, there are other options available for repayment, including the Income-Based Repayment Program.
For those who opted for the Income-Based Repayment Program, or a program similar to it, there is a program run by the government to forgive a portion of the debt. Under the standard repayment programs, the forgiveness will not occur until after the ten years of repayment, so the forgiveness program will not help these borrowers.
The Public Service Loan Forgiveness Program is the one being discussed here. Borrowers working in the public service department are the people benefited by this program. The program works by awarding low monthly payments to eligible employees of public service. While this option will help the ten year standard repayment program borrowers, the next benefit will not. The option for loan forgiveness is available to public service workers after ten years of paying on-time. Borrowers are only eligible if they have worked in the public service industry full-time for the ten years while they were repaying the loans.
What is public service? Well, career options may include anything from social work to non-profit jobs. Even some law or medical careers can qualify for being a part of the public service department. There is virtually no limitation of career choices available that are somehow involved in public service. All of these careers will reap the benefits of the Public Service Loan Forgiveness Program.
Specifically for non-profit workers, there is a special branch of the program dedicated to you. People who qualify are those who work with AmeriCorps or the PeaceCorps. Deferments are available while performing service, so while you’re away in a third-world country performing humanitarian wonders, you needn’t worry about student loan payments. Furthermore, a certain amount of student loans can be forgiven or cancelled after having served with either one of these excellent employers. Each borrower is different, and the qualifications for forgiveness can be discussed with the borrower’s specific loan servicer.
As can be seen, there are options available for borrowers when it comes to repaying their student loans. Specifically for public service workers, forgiveness is available after completing at least ten years of full-time work with a proper employer. The best determinant for eligibility requirements are loan servicers, so it’s best to speak to them before pursuing any of the above options.