Student loan debt forgiveness for government and nonprofit employees

[maplesyrup88]

Apologies that this isn't directly related to admissions, but very relevant for us potential government and nonprofit employees as we think about financing grad school. I found this article really interesting: http://mobile.nytimes.com/comments/2015/01/25/upshot/a-quiet-revolution-in-helping-lift-the-burden-of-student-debt.html

Living at home most of the time since college, I managed to pay down most of my undergrad student debt, but working at a nonprofit, I wonder if this was the right choice. After grad school, maybe I should apply for income based repayment, pay the minimum possible each month, and assume the rest gets forgiven after 10 years.

Does this sounds right? What's everyone else's plan for dealing with grad school debt?

[DanP]

Wow I'd heard about IBR but had no idea about the 10 year forgiveness. Irregardless of the bigger policy picture, it sounds like a stellar deal for our lot. Thanks for the article - makes me feel a little bit better about striking out on scholarships thus far.

[aidyinamman]

What an incredible program. I can't believe this isn't better advertised.

[Glitter1nTheAir]

Yes! I am planning on doing what you are doing as well.

 

Being in AmeriCorps opened my eyes to these options. Here are some more links with info that are applicable to anyone pursuing public service:

 

http://www.nationalservice.gov/resources/ed-award/income-based-repayment

 

http://www.nationalservice.gov/resources/ed-award/loan-forgiveness

[maplesyrup88]

Yes! I am planning on doing what you are doing as well.

Being in AmeriCorps opened my eyes to these options. Here are some more links with info that are applicable to anyone pursuing public service:

http://www.nationalservice.gov/resources/ed-award/income-based-repayment

http://www.nationalservice.gov/resources/ed-award/loan-forgiveness

This is really helpful! Since you seem more familiar with this, maybe you can she light on the following:

1. If I work for 3 years at a nonprofit, then take 2 years off for grad school, then return to the nonprofit or public sector full time, do I only need to wait 7 years for grad school loan forgiveness or is it 10 years of public service beginning at the disbursement of loans?

2. The site says "PSLF only works on federal "Direct" student loans. These are loans with the federal government as a lender. To participate in this program, you will need to consolidate your loans from Sallie Mae or other loan companies into Direct Loans. See http://loanconsolidation.ed.gov/ to learn more about Direct Loans. It doesn't work on Perkins or parent PLUS loans." So does this mean private loans can be consolidated with government direct loans and forgiven after 10 years as well?

Thanks!

[Glitter1nTheAir]

This is really helpful! Since you seem more familiar with this, maybe you can she light on the following:

1. If I work for 3 years at a nonprofit, then take 2 years off for grad school, then return to the nonprofit or public sector full time, do I only need to wait 7 years for grad school loan forgiveness or is it 10 years of public service beginning at the disbursement of loans?

2. The site says "PSLF only works on federal "Direct" student loans. These are loans with the federal government as a lender. To participate in this program, you will need to consolidate your loans from Sallie Mae or other loan companies into Direct Loans. See http://loanconsolidation.ed.gov/ to learn more about Direct Loans. It doesn't work on Perkins or parent PLUS loans." So does this mean private loans can be consolidated with government direct loans and forgiven after 10 years as well?

Thanks!

 

1. I am actually not completely sure myself. Are you currently re-paying loans you have from undergrad? What I am getting from the information on that site is that you have to be re-paying while you are working for that time to count although the employment does not need to be consecutive.

 

2. Anybody correct me if I'm wrong, but I believe that private education loans can not be consolidated, unfortunately.

[WhatAmIDoingNow]

So the IBR is great and the public service forgiveness sounds great.  The issues you need to keep in mind are that the qualifications and terms are ever changing.  It matters when you apply and when you got your first federal loans.  

 

Every year the public service forgiveness is tinkered with.  It used to be that you applied for it first, now you apply for it close to completing the terms (which are tinkered with every year).  You must be working an average of full time (30 hours per week) for 10 consecutive years, making all your monthly payments (which can never be more than 12 days late).  If you do not meet these terms, then you start over with your count. So keep this in mind if you take 3 months off of employment for some reason. ..  If you apply for the reduced monthly payment program, there is the ability to fall back on their forgiveness, 15 to 25 years depending on the program and when you took out your first loan.

 

OR, we all revolt.