April 30, 2008
Sudent Loan Forgiveness for people working in the public sector
I’ve been asked a LOT of questions about this since the new legislation was passed in October, and I finally have some concrete details to share with you.
You can view a PDF from the Department of Education that explains the changes. Access the PDF here. These are guidelines. Final regulations will be issued in November 2008.
Here are the highlights:
- You MUST make 10 years of payments (120 payments ) after October 2007 before your loans are forgiven – that means loan forgiveness won’t even start until October 2017.
- You MUST be employed in the public sector for all of those 120 payments.
- You MUST be employed in the public sector at the time the loans are forgiven.
- In the case of Parent PLUS loans, it is the parent who must mee the above 2 requirements, not the student.
- Your loans MUST be Direct Loans. Now those of you in the FFELP program, don’t panic – you can consolidate (or re-consolidate) your loans into the Direct Loan program to qualify.
IMPORTANT: As many of you know, the standard repayment period for student loans is 10 years. Essentially, those of you with high balances that you consolidate (ans thus extend the repayment period), or those of you on a reduced-income repayment plan will be eligible.
Here is a list of public-service full-time positions that are eligible:
• Emergency management
• Military service
• Public safety
• Law enforcement
• Public health
• Public education (including early childhood education)
• Social work in a public child or family service agency
• Public child care
• Public service for individuals with disabilities
• Public interest law services (including prosecution or public defense or legal advocacy in low income communities at a nonprofit organization)
• Public service for the elderly
• Public library sciences
• School-based library sciences and other school-based services
• Certain tax-exempt organizations
• Faculty teaching in high-needs areas, as determined by the Secretary
• Full-time faculty member at a Tribal College or University