Public Service Loan ForgivenessMarch 30, 2015
Repaying student loans can be a looming burden after college. Fortunately, for nonprofit employees, there could be a solution!
Congress enacted the Public Service Loan Forgiveness (PSLF) Program, or Student Loan Forgiveness Program in 2007 which allows forgiveness of unpaid federal student loan balances after you have made 120 consecutive payments. Though cancellations for loan balances will not begin until October 2017 (once 120 monthly payments since October 2007 have been made) it is worthwhile to start documenting your qualifications for this important opportunity.
What are the qualifications?
In order to take advantage of this valuable moneysaving tool, you must be (among other things):
- Currently employed full time with a public service organization which includes nonprofits and 501(c)(3) organizations.
- Paying back a non-defaulted loan made under the William D. Ford Federal Direct Loan Program.
- Keeping track of your eligibility. You will not qualify unless you keep accurate and up to date documentation of loan payments.
To see a complete list of who qualifies and how to start the process of student loan forgiveness, read our whitepaper: Student Loan Forgiveness for Not-for-Profit Employees.