Does anybody have any knowledge of the Student loan forgiveness. I am a social worker and have tons of loans!?
Yes, here is the info (from page 43-45) There is lots of fine print… in order to be eligible to be forgiven, the loan has to have had 120 payments made on it. Hint: Loans are put on a 10 year payment plan, so after 120 payments they are usually paid off on payment number 120!!! Stupid… But here is what it says. social worker in a public child or family service agency is eligible.
What is loan forgiveness for public service employees?
Under this program, the remaining outstanding balance of principal and accrued interest on an eligible Direct Loan will be forgiven for a borrower who is not in default and who makes 120 monthly payments on the loan, under certain repayment plans, after Oct. 1, 2007 (the first cancellations of loan balances will not be granted until Oct. 1, 2017 at the earliest), while employed in certain public service fields. You must be employed full-time in a qualifying public service field during the same period in which the 120 payments are made and at the time that the cancellation is granted.
For this loan forgiveness program, eligible Direct Loans include Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans (for parents or graduate and professional students), and Federal Direct Consolidation Loans. Although loan cancellation is only available for loans made and repaid under the Direct Loan Program, borrowers with loans made under other federal student loan programs may be eligible if you consolidate those loans into the Direct Loan Program. However, only payments made on the Direct Consolidation Loan will count toward the required 120 monthly payments.
How do I qualify for this loan forgiveness?
To be eligible to have remaining balances canceled, you must not be in default on the eligible loans and must have made 120 monthly payments on the eligible loan(s) beginning after Oct. 1, 2007. Earlier payments do not count toward meeting this requirement. Payments must have been made under any one or a combination of the following Direct Loan Program repayment plans.
• Standard Repayment Plan with a 10-year repayment period.
• Income-Contingent Repayment (ICR) Plan—not available to parent Direct PLUS loan borrowers.
• Income-Based Repayment (IBR) Plan—not available to parent Direct PLUS loan borrowers.
• Other Direct Loan repayment plans, but only payments that are at least equal to the amount that would be required under the 10-year Standard Repayment Plan may be counted toward the required 120 payments.
