The long wait for public employees to apply for student loans forgiveness has finally come to an end.
Qualified participants for student loan forgiveness can now send in their applications.
More about this news from MONEY below.
Student Loans Forgiveness for Public Employees Now Available
In 2007, the federal government created a program that would forgive student loans for people who worked in public service jobs for at least 10 years.
Now, the first participants in the Public Service Loan Forgiveness program (PSLF) can start applications — which, if approved, would scrap their remaining debt. More than half a million Americans who worked government or nonprofit jobs in the public sector paid 10 years worth of monthly payments as part of the program.
For the first time since the programs inception, applications for forgiveness are now available.
This news comes as a great relief to many employees who have been serving the public sector for 10 years and are making consistent monthly student loan payments.
Reports also say there are about 600,000 people wanting to take part in the student loan forgiveness program.
Upon approval of their applications, public employees are entitled to a cancellation of the remaining balance of their student loans.
However, those who are interested to apply in the program are advised to take on low paying jobs and contribute directly to their communities.
(Bonus Tip: Want all the pros and cons of student loan forgiveness all in one easy and accessible spot? The Definite Guide To Student Loan Forgiveness will go over each type of forgiveness program and weigh your options for you, so you don’t have to. Click here to get more info on the free guide.)
How Can a Public Employee Apply?
There are 4 important factors a participant should take into consideration to be eligible for the student loan forgiveness for public employees program.
- First, make sure your type of loan is a “Direct Loan” as it’s the only qualifying loan for this program.
- Second, your plan should be an income-driven repayment plan. The plan works by capping your monthly bill at a particular percentage of your income. You would need to reapply and submit the updated information of your income yearly.
- Third, you should work in a government or not-for-profit job full-time. The list of qualified employees is indicated in Section 501 (c)(3) of the Internal Revenue Code.
- Lastly, secure 120 qualifying payments. Payments are made not less than 15 days upon its due date. Pay the right amount as paying less won’t count and paying more will still count as one solid payment.
The Student Loan Forgiveness for Public Employees Program under President Trump
There has been a lot of controversy surrounding the student loan forgiveness program as of late.
The public has been placed under uncertainty about what will happen to their student loans years from now.
President Trump raised a budget proposal just recently eliminating the Public Service Loan Forgiveness altogether.
However, this should not be a cause for alarm.
The Trump administration assured current participants they’re still eligible, even if the PSLF is eliminated.
There is no final decision yet regarding changes to this issue.
The best advice right now for those opting to participate in the Student Loan Forgiveness Program for public employees is to consider all job opportunities first.
Considering the uncertainty surrounding the program, individuals may be better off taking a high-paying job than waiting to see how the forgiveness program plays out.
This all, of course, depends on the balance of your student loans.
There are also other student loan repayment options available which don’t require that much time to help settle your student loans.
Meanwhile, here’s a video from LegalTalkNetwork for more on student loan forgiveness among public employees:
(Bonus Tip: Want all the pros and cons of student loan forgiveness all in one easy and accessible spot? The Definite Guide To Student Loan Forgiveness will go over each type of forgiveness program and weigh your options for you, so you don’t have to. Click here to get more info on the free guide.)
What are your thoughts regarding student loan forgiveness now available for public employees? Let us know in the comments section below.
Up Next: Careers that Forgive Student Loans [Part 2 Updated]
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