Relief begins October 2017 for Public and Not-for-Profit employees burdened with student loan debt
Public and not-for-profit employees have an opportunity to have their student loans forgiven in October of 2017 thanks to a federal program created to encourage individuals to enter and stay in public and not-for-profit service. The loan forgiveness program is also extended to parents responsible for student loans for their children.
Here’s what you need to know now to take advantage of this reward for your service:
- The program requires that you have made 120 qualifying loan payments on your eligible federal student loans after October 1, 2007, thus the first loan forgiveness loan balances will be granted in October 2017.
- Any non-defaulted direct loans are eligible including:
♦ Direct Subsidized Loans
♦ Direct Unsubsidized Loans
♦ Direct PLUS Loans—for parents and graduate or professional students
♦ Direct Consolidation Loans - Loans under other federal student loan programs may be eligible if they are consolidated into a Direct Consolidated Loan, however only payments to the Direct Consolidated Loan will count in the 120 payment requirement.
- To qualify you must work full time (30 hours per week) in public service or for a not-for-profit organization and had been working at an eligible organization while paying your 120 loan payments. Examples of eligible employers include:
♦ A government organization (including a federal, state, local, or tribal organization, agency, or entity; a public child or family service agency; or a tribal college or university)
♦ A not-for-profit, tax-exempt organization under section 501(c)(3) of the Internal Revenue Code
♦ A private, not-for-profit organization (that is not a labor union or a partisan political organization) that provides one or more of the following public services:
Emergency management
Military service
Public safety
Law enforcement
Public interest law services
Early childhood education (including licensed or regulated health care, Head Start, and
state-funded prekindergarten)
Public service for individuals with disabilities and the elderly
Public health (including nurses, nurse practitioners, nurses in a clinical setting,
and full-time professionals engaged in health care practitioner occupations
and health care support occupations)
Public education
Public library services
School library or other school-based services
For detailed information, including how to monitor your progress toward qualifying for the Public Service Loan Forgiveness Program read the questions and answers document at StudentAid.gov. or contact Frank Eich, Audit and Accounting Services senior manager, at 216-831-7171 or feich@cp-advisors.com.