This article is about public employee student loan forgiveness and it’s an important topic to discuss because many people qualify for it. After applying for the program, public employees may remove one-tenth of their student loans for every year they work for a nonprofit or government employer. This includes most medical jobs, religious employers, government jobs and many employers who offer 403B retirement plans for 501 (c) 3 employers. Here are the forms for the non-profit and public employee student loan forgiveness program. Also, use this link to obtain the certification forms.
Public Employee Student Loan Forgiveness
Philip G. Schrag wrote a law review article on this program entitled Public Employee Student Loan Forgiveness Program. The important thing to remember is that many people fail to take advantage of this program because they don’t realize they qualify for it. For instance, doctors and nurses that work for hospitals often qualify because a hospital is a nonprofit corporation.
Teachers and other government employees also qualify for it. In fact, nearly 30% of the population qualify. This includes both soldiers and persons who work for churches and religious organizations qualify. So, if you work for a church or religious organization—your job involves public service work. However, you must be working in a nonreligious capacity such as a daycare worker, doctor, or teacher that works for the church or religious organization.
Income-based repayment and other discharge programs.
Interestingly, you also qualify to use this if you are already in an income-based repayment (IBR) program. However, you must apply for the program to get a 10% reduction per year. Unfortunately, it won’t wipe out the debt for your past years as a public employee and does not start until you apply for it and it goes into effect. You have to apply, and then it goes into effect from that application date. This is one of 10 different administrative programs that reduce, forgive, or eliminate your student loan debt.
There are many programs that make student loans affordable with reduced or zero payments. In fact, Student Access Loan-Technical(SALT) Request for Loan Discharge Benefit lists nearly 100 different programs.
I invite you to continue reading our other pages about student loan forgiveness including the undue hardship discharge so you can eliminate your debts. Also below, you will find a convenient list of forms and resources from this article.
Do you need help managing your student loans? Contact my office right away to start the conversation. Nick C. Thompson, Attorney: 502-625-0905