If you work in public service, you may be able to get your student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. This program is available to teachers, nurses, military personnel, and other professionals who work for government or nonprofit organizations. Here is how it works:
- You must have federal Direct Loans or consolidate other federal loans into a Direct Loan.
- You must work full-time for a qualifying employer, which includes government organizations and eligible nonprofits.
- You must make 120 qualifying monthly payments under an income-driven repayment plan or a 10-year Standard Repayment Plan.
- Once you reach 120 payments, the remaining balance on your loan is forgiven, tax-free.
Can teachers get their student loans forgiven?
Yes, teachers may qualify for loan forgiveness through both the PSLF program and the Teacher Loan Forgiveness Program. Here are the details:
- Teacher Loan Forgiveness Program: This program offers up to $17,500 in loan forgiveness for highly qualified math, science, or special education teachers who work in low-income schools for at least five years.
- PSLF Program: Teachers working for public schools or qualifying nonprofit schools can apply for PSLF. Unlike the Teacher Loan Forgiveness Program, PSLF does not have a cap on how much debt can be forgiven.
- Best strategy: If you qualify for both programs, you may be able to take advantage of the Teacher Loan Forgiveness Program first and then apply for PSLF for any remaining balance.
Read more: What will happen to student loans if Trump closes the Department of Education
Do nurses qualify for student loan forgiveness?
Yes, nurses have several options for student loan forgiveness, depending on where they work and what type of loans they have. Here are some of the main programs:
- PSLF Program: Nurses who work for public hospitals, government agencies, or nonprofit healthcare facilities can qualify for PSLF after making 120 qualifying payments.
- Nurse Corps Loan Repayment Program: This program offers up to 85% loan forgiveness for registered nurses, nurse practitioners, and faculty members who work in critical shortage areas.
- State-based programs: Many states offer their own loan forgiveness programs for nurses, especially those working in underserved communities. Be sure to check your state’s specific offerings.
Can military personnel get their student loans forgiven?
Yes, members of the military have access to multiple student loan forgiveness and repayment programs, including:
- PSLF Program: Active duty service members and veterans working in qualifying public service roles can apply for PSLF.
- Military Service Deferment: If you are on active duty, you may qualify for deferment, meaning you do not have to make payments on your student loans during your service.
- Total and Permanent Disability Discharge: If you become disabled due to military service, you may qualify for a full discharge of your federal student loans.
- Servicemembers Civil Relief Act (SCRA): This law caps interest rates on student loans at 6% while on active duty, which can reduce overall repayment costs.
How to apply for student loan forgiveness
If you think you qualify for loan forgiveness, follow these steps:
- Check if your employer qualifies: Use the PSLF Help Tool on the Federal Student Aid website to see if your employer is eligible.
- Submit the PSLF Form: You need to submit this form annually and any time you change jobs. It helps track your progress toward forgiveness.
- Make qualifying payments: Ensure that you are on an eligible repayment plan and that your payments count toward PSLF.
- Stay updated: Loan forgiveness policies can change, so check the Federal Student Aid website regularly to stay informed.
By following these steps, you can take full advantage of student loan forgiveness programs and reduce your financial burden while serving your community.
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What happens to student loans with Trump closing down much of the Education Department
