Student Loan Forgiveness

[deep in debt]

It is my understanding that almost all colleges and universities [public and private] are non-profit 501c3's, and as such anyone employed by them, even as faculty, would qualify for the 10-year public service student loan forgiveness program...

However, my financial aid office has expressed skepticism about this.

Has anyone else successfully enrolled in the program [or made it to the 10 year point and reached forgiveness] as a faculty member?

[sharp]

Yes -- this is true. I've spoken with people from the program and to my lender. All private and public universities count as public service.

No one is eligible yet, as the 10-year clock didn't start until October 2007. I was told to hold off on submitting the paperwork until early 2017.

[Link]

Doubt you will benefit from it because you have to make 120 payments (i.e. 10 years). If you make ok money, you will likely qualify for the 10 year repayment plan, in which case, there will be nothing left to forgive. www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-is-the-public

[workin it]

I just signed up for this, and, on my decent salary (not R1 dollars by any means), i have a very low payment. I calculate that I will pay back 1/7 of my loans in the next ten years. I'm a happy camper.

[noname]

I'm also on this repayment plan. Its based on earning from you previous tax year. Because I was a graduate student last year, and made a hefty 20K, my payments were $0/month. 108 payments to go!

I should warn people about two downsides. First, your interest accrues at a faster rate because your payments against the principle may be low. Second, I have great credit, but lenders see that I owe a large chunk of change in loans and are are weary to give. You may want to investigate this a bit more, especially if you are looking to buy a house.

[links]

Could someone please post the URLs for these programs and instructions for applying? Thank you!

[cant resist]

Apr 18, 2013 16:34:09 GMT -5 @links said:

Could someone please post the URLs for these programs and instructions for applying? Thank you!

lmgtfy.com/?q=student+loan+forgiveness

[Friend of a Friend]

I had a classmate get a TT at a CC and went to buy a house. The lender was concerned with amount of student loan debt. Once my classmate produced documents proving he was eligible and participating in this system then things moved along without too much trouble.

[options exist]

Apr 18, 2013 7:31:56 GMT -5 @Link said:

Doubt you will benefit from it because you have to make 120 payments (i.e. 10 years). If you make ok money, you will likely qualify for the 10 year repayment plan, in which case, there will be nothing left to forgive. www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-is-the-public

The repayment plans that exist offer flexibility. I am repaying over 25 years, but at a much lower rate (less than 1/3 of what I would be paying on a standard plan) because I selected the income-based repayment plan. My home loan was approved based on the assumption that I would've been repaying on standard (they default to that unless you can evidence a different monthly payment agreement, and one can't declare IBR until after graduation), but if I had waited until after I started my job and declared what the repayment plan would be, I would've been eligible to purchase a home at about double the value of the one that we bought.

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