If you have student loans and work for certain employers, you may be eligible for Public Service Loan Forgiveness. There is a government program that far too few people know about, but it could save people with student loans tens of thousands of dollars. Here is how the program works, if you work for a 501(c)(3) non-profit corporation or a governmental entity, you can enroll in an income-based repayment plan, and after ten years of payments, the balance of your federal student loans is completely forgiven by the government.
Unfortunately, this provision is barely used because most people either don’t know about it, or think that it only applies to certain groups. Most people usually think that only people like Teachers, Nurses, and Police Officers qualify, but that is not true. For example, Spectrum Health is a Non-Profit, so guess what, if you work at Spectrum Health in ANY capacity, whether janitor, parking attendant, or anything else — You can have your loans forgiven! This also means anyone who works for any form of government, federal, city, or state, whether you are a crossing guard or a lunch lady, you can have your federal student loans forgiven.
Here is a good example, let’s say Jim is a medical assistant at Spectrum Hospitals. He is married with two children, earns has a total household income of $60,000 per year and has $55,000 worth of student loan debt. Under the standard repayment plan, Jim would pay $632.94 per month for ten years for a total of $75,953.02 paid over the ten years. Now if Jim enrolls in Public Service Loan Forgiveness, he would have a monthly payment of $308.00 per month for the next ten years. Jim would pay $36,960, and the rest would be forgiven. So by enrolling in the loan forgiveness, Jim will save $38,993.02!
Sounds great right, so why don’t more people enroll in it? Well, most people just don’t know about it. Further, it can be complex because if you don’t have the right type of student loans, you don’t qualify. The trick is finding a good attorney with knowledge of student loan law. A qualified attorney can make sure that if you don’t have the right loans, we can turn them into the right kind so that you get your loans forgiven.
Not only will this save people tens of thousands of dollars, but for some people who are struggling financially, it could mean the difference between filing bankruptcy or not. While I am a bankruptcy attorney, I want to do everything I can to help people avoid bankruptcy if they can. So if you think you could benefit from being enrolled in this program, call us. It doesn’t matter if you are current or behind on your loans, call us so we can go over your information and determine what the best course of action may be.
For more information visit our services page about Student Loan Forgiveness.