Student loan forgiveness is a great way to keep student loan
payments from becoming an albatross around your neck as you work your way up
the career ladder. There are many different ways that you can qualify for
student loan forgiveness. The two types that most people are aware of involve
working in a high-need field such as education, or being a teacher, nurse, or
another professional who works in a low income area. The other way to get your
student loans forgiven is by working at an organization that offers this as a
benefit to its employees. Check with your current or future employers to see if
they have such programs in place. If so, you’ll need to complete an application
and submit it on time each year to remain eligible. Here’s what you should know
about filling out the application and qualifying for student loan forgiveness
through your employer:
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What is student loan forgiveness?
Student loan forgiveness is when the government or a private
entity wipes out your remaining student loans, or a portion of them. There are
several different types of student loan forgiveness. The type that most people
are aware of is when teachers, nurses, and other professionals that work in
high need fields get their student loans forgiven. The other way to get your
student loans forgiven is by working at an organization that offers this as a
benefit to its employees.
How to fill out the application for student loan forgiveness?
You’ll want to gather the necessary paperwork and
information before you begin the application process. You’ll need an up-to-date
copy of your credit report, school transcripts, a W-2 form, and 1099- forms if
you have side income or other sources of income that you’ve worked during the
year. Another thing to keep in mind is that many of these programs have
deadlines that you need to meet in order to remain eligible. You should submit
your application as soon as possible to ensure that you don’t miss the
deadline.
Which professions are included in the student loan forgiveness program?
The student loan forgiveness program is designed to
encourage people to work in important but low-paying fields such as education,
nursing, and public service. – Teachers – If you work as a teacher in a
low-income area, you are eligible for up to $17,500 in student loan
forgiveness. This amount is combined from federal and state programs. – Nurses
– Nurses who work in a shortage area, given that they have an active license,
may be eligible for up to $25,000 in forgiveness. – Health care workers –
Workers who provide services in a health care setting, such as doctors, nurses,
and lab technicians, are eligible for up to $50,000 in forgiveness. – Lawyers –
You may be eligible for up to $10,000 in forgiveness if you work as a public
defender or work as a paralegal in a nonprofit law firm. – Public service – If
you work in government or non-profit organizations, you may be eligible for up
to $17,500 in forgiveness.
Which professions are excluded from the student loan forgiveness program?
– Doctors – Doctors who work in a shortage area may qualify
for up to $50,000 in forgiveness, but you may have to work for a certain amount
of time before receiving the benefit. – Wall Street executives – Financial
professionals who work on Wall Street and in investment banks may be exempt
from the forgiveness program. – Business owners – Business owners and
executives may be exempt from the forgiveness program, but there are a lot of
variables that work into this. – Investors – Investors may be exempt from the
forgiveness program, but there are a lot of variables that work into this. –
People with a high income – If you make a high income, greater than $56,000 a
year, you may be exempt from the forgiveness program because you are already
paying a lot of money in taxes. – People with a high amount of student loans –
If you have a high level of student loan debt, you may be exempt from the
forgiveness program because you make too much money to qualify for help.
How to know if you’re eligible for Public Service Loan Forgiveness?
You can check your eligibility for Public Service Loan
Forgiveness (PSLF) with this tool from the Federal Student Aid Office:
https://fsad.ed.gov/pslf/ There is also a PSLF estimator that is helpful if you
aren’t sure if you’re eligible. It can be found here:
https://studentaid.ed.gov/sa/pslF/
The Income Based Repayment Program and Mergers
There have been recent mergers between the Income Based
Repayment Program (IBR) and the PSLF program, which means that IBR participants
are now eligible for PSLF. For example, someone who has been paying IBR for 10
years may still qualify for PSLF if they qualify in every other way.
Additionally, the IBR program has been expanded to include those who work in
public service. This means that teachers and nurses who work in public service
may be eligible for a lower monthly payment through IBR. The Federal Student
Aid Office is still ironing out the details of this merger, so stay tuned for more
information as it comes out.
Student loan forgiveness is a great way to keep student loan
payments from becoming an albatross around your neck as you work your way up
the career ladder. There are many different ways that you can qualify for
student loan forgiveness. The two types that most people are aware of involve
working in a high-need field such as education, or being a teacher, nurse, or
another professional who works in a low income area. The other way to get your
student loans forgiven is by working at an organization that offers this as a
benefit to its employees. Check with your current or future employers to see if
they have such programs in place. If so, you’ll need to complete an application
and submit it on time each year to remain eligible.