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Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance. She has mastered the art of boiling down complicated financial topics for readers to understand. |
If you are a federal employee or work for a qualified public service organization, you may qualify to have your student loan debt forgiven. Check here to see if you qualify. Certain Federal Employees Are Eligible For Loan Forgiveness By Britt Erica Tunick While many people in their 40s, 50s and beyond are focused on how they will pay for their children’s college educations, a surprising number of people in this age range are still paying off their own school loans. But if you fall within this category and are a longtime employee of the public sector with outstanding federal loans, the odds are good that you are eligible for the opportunity to erase your outstanding debt. Of the $1.2 trillion in outstanding student debt in the United States, 35% of that debt is owed by individuals who are 40 years old or older, according to data from the New York Federal Reserve. As part of its College Cost Reduction and Access Act of 2007, the U.S. government created the Public Service Loan Forgiveness Program (PSLF) that allows qualifying individuals to have the remainder of their outstanding federal school loans forgiven. To qualify for the PSLF program, an individual must be a full-time employee of a qualifying public service organization (someone who works 30 hours per week or more) and must have made 120 on-time monthly payments towards their direct federal loan after October 1, 2007. Qualifying organizations include federal, state, local or tribal government organizations; 501(c) (3) non-profit organizations; non-profits that provide certain types of qualifying public services; and individuals who serve full-time in the Peace Corps or AmeriCorps. As long as the loan is not in default and has not been deferred during that period, an individual should qualify for PSFL. Eligible direct federal loan types include federal direct Stafford or Ford loans (both direct subsidized and direct unsubsidized loans); federal direct PLUS loans; and federal direct consolidation loans. Federal Family Education Loans, Federal Perkins Loans and certain nursing or health profession loans can also qualify for relief if they are consolidated into a direct consolidation loan. If you meet the above qualifications and want to learn more about this program you can find additional information at: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service#qualifying-repayment-plan or you can obtain the application form at: https://www.google.com/#safe=active&q=Pslf+form |
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