Student loan forgiveness for nonprofit employees is one of the many forms of student loan help available to borrowers. It is also one of the least complicated student loan forgiveness programs to qualify for.
A career in a non-profit organization is not as popular as other options, but the benefits might change your mind.
Student loan forgiveness is one, though a nonprofit career in itself offers fulfillment in the form of altruistic work.
(Pro Tip: Need an easy and fast way to find out if you qualify for student loan forgiveness? Download this free guide to find the best way to take advantage of student loan forgiveness programs. Learn more here.)
How Does Student Loan Forgiveness for NonProfit Work?
In this article:
- Student Loan Forgiveness for Nonprofit Workers
- Loan Consolidation
- Repayment Period and Plan
- Forgiveness Limit
- What to Do Now
Student Loan Forgiveness for Nonprofit Workers
Student loan forgiveness for nonprofit employees falls under the umbrella of student loan forgiveness for public service. Many jobs fall into the public service category. Working for a nonprofit organization is one of them.
To qualify for forgiveness, you must work for a 501(c)(3) institution or organization. Note, however, that not all nonprofit organizations have a 501(c)(3) designation. It is best to ask your employer about this before you sign your contract.
Qualifying for forgiveness is easy:
- You must work for a traditional nonprofit organization — in other words, those that are under 501(c)(3).
- You may also work for other government institutions or public service organizations. Check with your employer when it comes to these matters.
- You must be employed full time and work 30 hours per week.
- You must have federal direct loans. Other loans, such as Perkins loans, Stafford loans, and PLUS loans, do not qualify for forgiveness under this program.
Many borrowers have a combination of federal loans. If you are one of them and wish to qualify for student loan forgiveness for nonprofit workers, you may do so through Direct Loan Consolidation.
Under the Direct Loan Consolidation Program, you will have only one federal direct loan, thus making your loans eligible for forgiveness.
Repayment Period and Plan
Perhaps the best thing about student loan forgiveness for nonprofit workers is that it takes effect after only 10 years.
This means you must make only 120 qualifying monthly payments to attain loan forgiveness. Payments must be full, on-time, and consecutive.
As for the monthly payments, all federal repayment plans qualify for forgiveness.
Note that it is best to apply for a plan that requires you to make only small monthly payments, such as an Income-Driven Repayment Plan.The plan takes into consideration your debt-to-income ratio. This is important for nonprofit work because income in this field is not usually high.
(Pro Tip: Need an easy and fast way to find out whether you qualify for student loan forgiveness? Download this free guide to learn the best way to take advantage of student loan forgiveness programs. Learn more here.)
Currently, student loan forgiveness for nonprofit workers does not have a forgiveness limit.
As long as you meet the qualifications and duties expected of you, any balance on your student loan may be forgiven.
What to Do Now
The federal government is in the process of drawing up the application for this program. It was reported that it would be made available by October 2017.
Use this time to consider a career in nonprofit. Be practical as well, and obtain the necessary documents to apply for the program.
Watch this video from AAP Journals & Periodicals for more information about student loan forgiveness for nonprofit workers:
In a country driven by financial success, nonprofit work has gained an unpleasant reputation. Do not be fooled.
Some of the most rewarding and satisfying careers are in the world of nonprofit. While the monetary compensation is not very enticing, the work can create feelings of self-fulfillment and self-accomplishment.
Student loan forgiveness for nonprofit workers is the testament to the fact that such work is important to the country’s growth and development.
What are your thoughts on student loan forgiveness for nonprofit workers? Let us know in the comments below.
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