5 Traps for Unwary Student Loan Borrowers
On the one hand, Public Service Loan Forgiveness is easy.
Just 1) make the right kind of payment, 2) on the right kind of loan, 3) while you are in the right kind of job. 4) Repeat 120 times, and 5) prove it.
But the devil is in the details.
- Payments made under many “standard” repayment plans don’t count towards forgiveness.
- Payments that are more than 15 days late don’t count toward forgiveness.
- Many borrowers must consolidate or reconsolidate into Federal Direct Loans in order to have the “right kind of loan.”
- Government contractors are not considered employed by the government.
- Not only must you be employed in a qualifying public service position when you make each of the 120 qualifying payments, you must also be employed in a qualifying public service position when they grant forgiveness.
There are many pesky things to know about Public Service Loan Forgiveness, but if you plan a career in government or nonprofit service, it might just be the best little annoyingly detailed program ever.
Get more details at one of my free webinars or upcoming live events. Questions? Check out the forum for the answers you need.
By Heather | Category: IBR, Public Service Loan Forgiveness
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