The hefty student loan problem persists in the national scene. According to the Brookings Institution, a college graduate with a bachelor’s degree accumulates $26,500 in student loans on average. The loans can get more expensive with interest rates and when graduate studies are pursued.
As a consequence, these individuals need to allot around 14.1% of their income to student loan repayment during their first year and around 6.5% of their earnings even a decade after graduating. What these debtors may not know is that their loan can be “forgiven”. Debt consolidation expert Schimeon Frederick sheds light on public service federal loan forgiveness as one of their options.
First, What is Federal Loan Forgiveness?
There are certain instances when the government would forgive, cancel, and discharge your student loans. In other words, they won’t expect you to make any more payments. Special cases like the school closing down, getting permanently disabled, dying, and bankruptcy are generally the qualifications for federal loan forgiveness. Not being able to complete your studies, not finding a job related to your degree, and being dissatisfied with the education you paid for with the loan are NOT included.
How Public Service Fits into the Picture
People with student loans are encouraged to work full-time in public service as another way to have their debt forgiven. While the teacher loan forgiveness limits you to teaching jobs at elementary or secondary schools and educational service, for instance, this type of forgiveness could be maximized through different jobs. You could work for any official government organization (from the federal level down to local and tribal entities), tax-exempt 501(c)(3) nonprofits, and private nonprofits providing the public services specified by the Education Department.
Points to Remember
Not all federal student loans qualify for public service federal loan forgiveness. Generally, only debts acquired under the Direct Loan Program would be considered. The loan should also not be defaulted at the time of application (i.e. you must have made a certain number of payments accordingly).
You would also need to satisfy all other eligibility criteria and requirements, such as the number of hours to be considered a “full-time” worker, employer eligibility, forms, etc. It would be advisable to discuss your qualifications and seek assistance from student loan debt consolidation experts like TDS. Debt consolidation professionals may also advise you on your alternatives if the public service federal loan forgiveness does not suit your case.