Relieve Student Loan Burden With Public Service

January 5, 2011 RSS Feed Print
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The Public Service Loan Forgiveness program created by the College Cost Reduction and Access Act encourages individuals to enter and continue full-time public service employment by offering loan forgiveness for those borrowers that meet the requirements. To qualify, a borrower must make 120 qualifying monthly loan payments (once a month for 10 years) on eligible loans while working in qualifying public service employment.

What is qualifying employment? Qualifying public service employment is full-time paid work in the government; a 501(c)(3) nonprofit; an AmeriCorps or Peace Corps position; or for a private "public service organization."

Which student loans are eligible? Only Federal Direct loans are eligible for Public Service Loan Forgiveness. All current students borrow federal student loans through Federal Direct. In the past, students also borrowed federal student loans from private banks and lending institutions through the Federal Family Education Loan (FFEL) program. Borrowers with FFEL loans must consolidate, or reconsolidate, into Federal Direct in order to be eligible for Public Service Loan Forgiveness. Find out what kind of student loans you have using the National Student Loan Data System at www.nslds.gov.

Some students also borrow commercial loans from state or private lenders. Commercial loans are never eligible for Public Service Loan Forgiveness.

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Which payments count toward Public Service Loan Forgiveness? Most borrowers seeking Public Service Loan Forgiveness will choose Income-Based Repayment (IBR), and payments made under IBR will count toward the 120 payments required for forgiveness.

Where can I get more information? Public Service Loan Forgiveness is not automatic, and borrowers must take specific actions in order to benefit. Equal Justice Works provides free online resources to help you figure it all out, including webinars, podcasts, a downloadable checklist, and an interactive forum.

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This was introduced in 2007. At that time their guidance was "continue to pay your student loans on time and after 120 payments and 10 years in federal service you qualify for loan forgiveness." Five years later they changed the rules and made it only with a specific servicer and OH by the way- your previous 5 years of making payments and working for about $20,000 less than your nonfederal peers DOES NOT COUNT. I truely hope that they amend the Federal Loan Forgiveness and that they count the previous years that I have both served as a federal employee and paid my student loans.

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Robebj82 of OR 12:35AM April 01, 2013

Student Loan Ranger

Equal Justice Works® is a national nonprofit organization working to provide public interest opportunities for law students and lawyers and to reduce the financial barriers preventing many from pursuing and remaining in public service careers. It advocates for legislation to reduce the educational debt burden for all students and professionals and provides detailed information on educational debt relief programs to prospective and current students, graduates, schools, and employers. The organization's E-book, Take Control of Your Future: A Guide to Managing Your Student Debt, offers information and guidance ranging from borrowing to repayment and relief programs such as Public Service Loan Forgiveness and Income-Based Repayment. Got a question? E-mail studentloanranger@usnews.com.

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