Does anyone know very specific details about the new student loan forgiveness program?
There was something about it on CNN. I’m trying to figure out what jobs qualify under the “public health” area.My husband is a doctor of optometry and I’m not sure if this qualifies for the 10 year forgiveness plan under a “public health” job. He works for another eye doctor who owns his own store so I’m guessing that means it is the “private” sector but I didn’t know if being an eye doctor meant he is still in “public” health (I know this is probably just wishful thinking since we have a 30 year loan repayment schedule!). Thanks!
I didn’t see the CNN program, but here is what the Department of Education has for the student loan forgiveness policies. Page 47 of this book describes the details of having loans forgiven. These are not just for public health but the wording is “Public Service”. (The idea is that those who work in public service often have a very low salary and are not able to make as much money as those going into the private sector). Also be aware these are for FEDERAL loans. If he has private student loans (or he consolidated loans after graduation, he probably won’t qualify. I say that because all federal loans have a 10 year payment plan, not 30 years as his are).
http://studentaid.ed.gov/students/attachments/siteresources/FundingEduBeyondHighSchool_0910.pdf (page 47)
What is a public service job?
Eligible public service jobs are full-time jobs in the following fields:
• Emergency management
• Government
• Military service
• Public safety
• Law enforcement
• Public health
• Public education (including early childhood education)
• Social work in a public child or family service agency
• Public child care
• Public service for individuals with disabilities
• Public interest law services (including prosecution or public defense or legal advocacy in low income communities at a nonprofit organization)
• Public service for the elderly
• Public library sciences
• School-based library sciences and other school-based services
• Certain tax-exempt organizations
• Faculty teaching in high-needs areas, as determined by the Secretary
• Full-time faculty member at a Tribal College or University
Note: A borrower who pays only, or primarily, under a 10-year standard repayment plan or under another repayment plan in amounts consistent with a 10-year standard repayment is UNLIKELY TO HAVE A REMAINING BALLANCE for loan forgiveness after making 120 payments on the loan.
(This is why no one ever really qualifies, they passed the law, but if the person actually pays on it for 10 years, they pay the loan off!!!!) Stupid, worthless benefit that looks good on paper but never gets used unless someone takes a job working for minimum wage after they earn their degree.
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.
