| If you have heard of student loan forgiveness but | | | | You must work in a public service profession for the |
| don't quite understand what it is, you will want to | | | | entire 120 months that payments are being made, |
| read this. We are going to discuss the most | | | | including when you apply for forgiveness. |
| frequently asked questions about student loan | | | | Can anyone who works in public service qualify? |
| forgiveness. When you are done reading, you should | | | | No. The program is designed to reward those who |
| have a good idea how student loan forgiveness | | | | dedicate their professional lives to public service and |
| works and if it is a good choice for you. | | | | by doing so accept a very low salary. Because the |
| What is Student Loan Forgiveness? | | | | term of student loans is 120 months and the |
| Loan forgiveness began in October of 2007 with the | | | | program only offers forgiveness after 120 months, |
| passage of the College Cost Reduction and Access | | | | only people that qualify for Income Based |
| Act. It allows for the remaining balance of student | | | | Repayment plans will benefit from it. This means that |
| loans to be forgiven after 120 payments are made | | | | you have to have a low income and relatively high |
| on time provided certain conditions are met. | | | | debt level to qualify. |
| Are all student loans eligible for forgiveness? | | | | Are there any other conditions? |
| No! Only loans that are under the Direct Loan | | | | Yes, your student loans must be in good standing |
| Program qualify. If your loan was not made under the | | | | and may not be in default. |
| direct loan program, you will need to consolidate your | | | | What type of jobs qualifies as public service? |
| existing loans into the program. | | | | Jobs that qualify you for the program include: |
| I am five years into my loan. Does this mean that I | | | | policemen, firemen, government, military, public |
| will be eligible for forgiveness in 5 years? | | | | education, public health, public library, public child care, |
| No! The Act stipulates that 120 payments must be | | | | public law and emergency management. Pretty much |
| made after CCRA passed. This means that the | | | | any public service career qualifies. |
| earliest that any loans will be eligible for forgiveness is | | | | Hopefully by now, you have a good idea of what |
| 2017. | | | | loan forgiveness is, and if it is a program that you |
| What do you have to do to qualify for forgiveness? | | | | may be able to benefit from. |