student loan forgiveness programs

[Zoe Girl]

I lucked out today. I was at one of the schools I supervise at and I heard an announcement over the intercom about an informational meeting for loan forgiveness programs. How timely since I have to pay or do another deferment next month.

The one that sounds great to me (especially since I don't qualify for the other one since I am not teaching) is the public servant one. So you pay on the loan for 10 years. It can be a minimal amount according to your income but you need to pay for the 10 years while you work in any type of public service. At the end of 10 years the balance is forgiven. Wow, it is good for people like me with larger loans (who expected to be working) who will get a larger amount forgiven but with the overall society benefitting when we don't work in public service and then run to earn money in a couple years.

This company also had assistance for grants for specific work in areas like teaching special education or other specific areas. I will of COURSE double check all the information before I start paying on my loans (thinking $50 a month at this point) but it does sound like a good deal.

[redfox]

Zoegirl, I too am applying for this program. Here's what I found out: your loans need to be under a federal program - any that are privately held are ineligible. One pays for 10 years, then applies for forgiveness. And hopes the program still exists. I work in the non-profit sector, so I'm eligible. My loans are currently privately held but federally guaranteed. Once I shift my loans to a federal program, then I'll apply for income sensitive repayment. THEN I'll make the 120 payments & apply for forgiveness... if the program still exists.

I did about a day's worth of research into this last month. I'll send you the links I have once I find them again.

[redfox]

https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

Here is one.

[Zoe Girl]

very cool. thank you for sharing. I think I am going to ask for paperwork in the beginning that assures we will still get the forgiveness at the end. All my loans are federal and easy that way, plus I looked at the payments they have wanted and it is pretty low already. I have a huge deal about wanting to pay my loans because I think that makes sure money will be available for the next generation, and I paid everything for my BA off even though that was hard. So I would like to make an effort to pay but I sure will take that offer if I pay well for 10 years!

[redfox]

Keep me posted on your progress. I am tackling mine this weekend. The info I got from the Federal forgiveness program is that the first time one can apply for forgiveness is 2017, as the program started in 2007, and that one cannot apply till one has made 120 payments (not 10 years, interestingly enough. I did wonder what would happen if one made 13 payments a year). I would be most interested if you get different information.

[jennipurrr]

Oh wow...this is something to look into for DH. He works for a state university, not sure if he would qualify. He still has about 40K left, but his loans are held with IDAPP and he consolidated in 2004...so not sure if this would work for him but something to explore.

Thanks for sharing!

Edited to add...I did a little digging. His job does qualify, as does anyone working for a public university. His loans are not serviced by Direct Loans, so the payments from 2007 until now would not count. If he could switch to Direct Loans, and that is a big if (I didn't investigate further), the interest rate would probably go up based on the calculator I used (right now he is locked in at 1.5%) and the income based repayment is higher than the payment now. So, while he would get to forgive about 24K, after the additional interest it works out to be about the same as just paying off the balance with the 1.5% interest deal he has.

If he could have counted his payments from 2007 forward it would have been a pretty sweet deal since he would have been nearly halfway there already and had the low interest rate. Oh well, not for us I guess.