It’s been almost 10 years since the William D. Ford Act was passed in 2007 establishing a forgiveness point for public servants with qualifying loans. Those employees of non-profit organizations and government agencies who took advantage of restructuring their loans back in 2007 and have been working full time in their respective positions are no doubt eagerly anticipating their forgiveness benefits kicking in next year.
The Public Service Loan Forgiveness program is a comprehensive forgiveness benefit that will eliminate any remaining federal student loan balance after 10 qualified years in the program.
Pros of the program include:
– Non-profit employment credit can be combined from more than one employment period following a federal loan restructure.
– Qualified employment periods do not have to be consecutive but they do have to add up to 10 years to receive the forgiveness benefit.
– You may still postpone individual monthly loan payments in times of financial hardship, however, postponement periods do not provide program credit.
Cons of the program include:
– The program is not retroactive…it doesn’t matter of you have been a government or non-profit employee for ten years already, you must restructure your loans through the Department of Education to activate your forgiveness program option and then complete 10 years of public service employment while making qualified payments on your loans.
Check Your Benefits:
If you think you may qualify for Public Service Loan Forgiveness, you may request a complimentary program consultation by submitting the request form to the right for callback.
(Mobile users will find the consultation request form located below.)