If you’re set on applying or attending graduate school in the future and/or plan on working for a U.S. federal, state, local, or tribal government or not-for-profit organization, then the Public Service Loan Forgiveness Program may be an option for you.
The Public Service Loan Forgiveness Program forgives the remaining balance on your Direct Loans if you have the following qualifications: You must work full-time at a federal, state, local, or tribal government or nonprofit organization, have direct loans, make 120 monthly payments, and repay your loans under an income-driven repayment plan.
So what are a few jobs that qualify for this program? A few examples would be government jobs, working for the Peace Corps or AmeriCorps, public safety and law enforcement jobs, public interest law, public health, public library and education services, and military service.
Exceptions to this program would be working for advocacy/political groups and labor unions or clergy/religious work. To apply for the program, use the PSLF Help Tool. The online application is similar to a job application and will provide instructions on filling it out. You’ll have to take the form to your employer to officially sign and upload to the website.
However, it’s important to note that the requirements for qualifying for the PSLF can be tricky. There have also been horror stories with the PSLF, like being enrolled in the wrong repayment plan or holding the wrong type of loan, or making payments for years while working in public service.
This program is just one of a few ways to repay your debt. For more opportunities, keep an eye out for the paying back debt series on the CEC blog!