Dear Heather,

I have approximately $170K in student loan debt that I have been dragging around with me for about 25 years (since I graduated from law school).  All loans are public (Stafford, etc) and none were cosigned by my parents.  I consolidated once in the past and then went back to school for a Masters in Counseling.  I figure that the only way I will ever get this monkey off my back is to do the Public Service Loan Forgiveness program.  I believe that on Monday, I will be offered a job with a private, non-profit, tax-exempt under 501(c)(3). 

The agency is described as a “A PRIVATE, NONPROFIT MENTAL HEALTH ORGANIZATION THAT SERVES CHILDREN, ADOLESCENTS, ADULTS AND FAMILIES IN XXX COUNTY.  ITS MISSION IS TO PROVIDE HIGH QUALITY MENTAL HEALTH SERVICES FOR CHILDREN AND ADULTS AND THEIR FAMILIES AND TO ENGAGE IN COMMUNITY ACTIVITIES THAT PROMOTE MENTAL HEALTH-RELATED GOALS.  XXX HAS A CORE COMMITMENT TO PREVENTION AND EARLY INTERVENTION.  THE XXX OFFICE PROVIDES MENTAL HEALTH COUNSELING TO CLIENTS WHO HAVE PRIVATE INSURANCE, PUBLIC INSURANCE (MEDICAID AND MEDICARE), OR NO INSURANCE AT ALL. UNINSURED CLIENTS PAY ON A SLIDING FEE SCALE BASED ON INCOME IN 2013, THE AGENCY PROVIDED OFFICE-BASED MENTAL HEALTH THERAPY TO OVER 500 CHILDREN, ADULTS AND SENIORS ASPIRE ALSO HAS AN “OFFICE WITHOUT WALLS” - COMMUNITY-BASED PROGRAMS THAT SERVE VULNERABLE CLIENTS OUTSIDE THE MAINSTREAM OF MENTAL HEALTH CARE. IN 2013, COMMUNITY PROGRAMS SERVED OVER 500 MORE CHILDREN, ADULTS AND SENIORS.”

I believe that therapists are paid as independent contractors on 1099s, although that will obviously be my first question to the business person on Monday.  (I know for sure that they don’t provide benefits.)  Therapists are paid $32-37/hr, depending on what insurance pays.  (This is typical of such entities.)  I figure that if this job qualifies me for the PSLF program, it will be the equivalent of adding $15K onto my salary.

So, my questions to you are:
*  Does such an agency appear to qualify?
*  Will it make a difference if they give me a 1099 vs. W-2?
*  Are there other questions I should ask the business manager when I see her Monday?  (Other than ascertaining that she will fill out the form for me each year?)
*  I know that I will have to go into consolidation in order to qualify.  Is there one plan or the other (IBR, etc.) that better suits my circumstances.
*  In the past, I have been locked out of some debt management system b/c I did something (like consolidate) too early.  Is there anything in the pipeline that I should be wary of in this way?  For example, an extreme medical condition prevented me from working most of this year; as a result, I will have to declare bankruptcy.  Is there any talk of student loans being able to be included in Chap 7 bankruptcies, which would warrant me holding off?

Many thanks for your help,
Marcia

Here’s a post from Heather where she describes this scenario:

“Here’s an example of what I mean:
Jimmy does contract work for a 501(c)(3) but he is not employed by the c3.
Jimmy is self employed and he receives a 1099 from the c3.  Jimmy’s status as self-employed is a for profit designation (whether or not he makes any real profit) and his contract with the c3 does not serve to qualify him for PSLF.

Jimmy does contract work for the government but is not employed by the government.
Jimmy is employed by a private business that does work on contract for the government.  Jimmy’s work does not serve to qualify him for PSLF.

But if Jimmy does contract work for the government and is employed by a 501(c)(3) organization (like court appointed indigent defense for a state government while working in a not for profit charitable law firm), his contract work does not make him a government employee and does not matter, but his work for the 501(C)(3) qualifies him instead.”

I think you should read more information in advance about how to properly work with the waiver documents on the site https://www.pandadoc.com/waiver-software/, where you can create such documents with the possibility of electronic signature online. This is an extremely convenient feature that will greatly facilitate your work. Good luck!