We've heard much about Student Loan debt in the media in the last year. Collectively, Americans owe more than $1 Trillion in Student Loans! In 2010, Student Loan debt eclipsed credit card debt.
If you're like me, you might ask yourself, "I work in the nonprofit sector! I'm not paid as handsomely as my peers in the for-profit world, and my work impacts people's lives! Surely I should get some credit for that!"
Well, guess what? If you have federal student loans, then you do! With the under-utilized and under-publicized Public Service Loan Forgiveness Program, you may qualify to have your student loan debt erased after 10 years of service in the nonprofit sector. Here's how it works:
- You must be employed (at least 30 hours/week) by a government agency or a 501(c)(3) nonprofit.
- You must enroll in the program by submitting the "Employment Certification Form"
- Your Federal Student Loans (Ford Federal Direct Loans) will be transferred to FedLoan Servicing (The Pennsylvania Higher Education Assistance Agency).
- You will need to enroll in an "Income-Based Repayment Plan", or another qualified repayment plan, to determine your monthly payment. You will have to re-certify your income every year.
- After you make 120 regular monthly payments (the amount of the payment does not matter, as long as it is the minimum required, multiple payments won't count), the remaining balance will be written off.
- The 'qualified payments' do not need to be consecutive. If you leave employment at a nonprofit for a period of time, and then come back, your qualified payments will pick up where you left off, until you reach 120.
I'm enrolled in the program myself, and I look forward to having no student loan debt in.... November 2022!
SCANPO Operations Manager