U.S. student loan debt exceeds $800 billion for 2014
http://www.sott.net/article/290784-US-student-loan-debt-exceeds-800-billion-for-2014
For Americans planning to dedicate their lives to service, like to a 501(c)(3) nonprofit, there is one type of student loan that can be forgiven: William D. Ford Federal Direct Loan, including Direct Consolidation Loan. While Federal Family Education Loans (FFEL) like Stafford loans or the Federal Perkins Loans are not immediately eligible, they may be converted into a Direct Consolidation Loan that is eligible for loan forgiveness. The loans forgiven under the public service loan forgiveness program do not count as taxable income.
But what happens during the 10+ years before the loan is forgiven? Assuming that the Americans are not making a lot of money from their nonprofit employer, their monthly loan payments may be as low as zero in the Income-Based Repayment Plan (IBR Plan) or Pay As You Earn Repayment Plan.
The combination of the loan repayment plan and loan forgiveness means that for many Americans with Direct Loans, they would not have to repay any of those loans.
_https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-loans-are-eligible
What kinds of employment qualify?
Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for PSLF purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes.
A private not-for-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services. These services include emergency management, military service, public safety, or law enforcement services; public health services; public education or public library services; school library and other school-based services; public interest law services; early childhood education; public service for individuals with disabilities and the elderly. The organization must not be a labor union or a partisan political organization.
What is full-time employment?
You must meet your employer's definition of full-time. However, for PSLF purposes, that definition must be at least an annual average of 30 hours per week. For purposes of the full-time requirement, your qualifying employment at a not-for-profit organization does not include time spent participating in religious instruction, worship services, or any form of proselytizing.
If you are a teacher, or other employee of a public service organization, under contract for at least eight out of 12 months, you meet the full-time standard if you work an average of at least 30 hours per week during the contractual period and receive credit by your employer for a full year's worth of employment.
If you are employed in more than one qualifying part-time job simultaneously, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.
What loans are eligible for forgiveness?
Only loans you received under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for PSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF.
If you have FFEL Program or Perkins Loan Program loans, you may consolidate them into a Direct Consolidation Loan to take advantage of PSLF. However, only payments you make on the new Direct Consolidation Loan will count toward the required 120 qualifying payments for PSLF. Payments made on your FFEL Program or Perkins Loan Program loans before you consolidated them, even if they were made under a qualifying repayment plan, do not count as qualifying PSLF payments. In addition, if you made qualifying payments on a Direct Loan and then consolidate it into a Direct Consolidation Loan, you must make 120 qualifying payments on the Direct Consolidation Loan.
http://www.sott.net/article/290784-US-student-loan-debt-exceeds-800-billion-for-2014
For Americans planning to dedicate their lives to service, like to a 501(c)(3) nonprofit, there is one type of student loan that can be forgiven: William D. Ford Federal Direct Loan, including Direct Consolidation Loan. While Federal Family Education Loans (FFEL) like Stafford loans or the Federal Perkins Loans are not immediately eligible, they may be converted into a Direct Consolidation Loan that is eligible for loan forgiveness. The loans forgiven under the public service loan forgiveness program do not count as taxable income.
But what happens during the 10+ years before the loan is forgiven? Assuming that the Americans are not making a lot of money from their nonprofit employer, their monthly loan payments may be as low as zero in the Income-Based Repayment Plan (IBR Plan) or Pay As You Earn Repayment Plan.
The combination of the loan repayment plan and loan forgiveness means that for many Americans with Direct Loans, they would not have to repay any of those loans.
_https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-loans-are-eligible
What kinds of employment qualify?
Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for PSLF purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes.
A private not-for-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services. These services include emergency management, military service, public safety, or law enforcement services; public health services; public education or public library services; school library and other school-based services; public interest law services; early childhood education; public service for individuals with disabilities and the elderly. The organization must not be a labor union or a partisan political organization.
What is full-time employment?
You must meet your employer's definition of full-time. However, for PSLF purposes, that definition must be at least an annual average of 30 hours per week. For purposes of the full-time requirement, your qualifying employment at a not-for-profit organization does not include time spent participating in religious instruction, worship services, or any form of proselytizing.
If you are a teacher, or other employee of a public service organization, under contract for at least eight out of 12 months, you meet the full-time standard if you work an average of at least 30 hours per week during the contractual period and receive credit by your employer for a full year's worth of employment.
If you are employed in more than one qualifying part-time job simultaneously, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.
What loans are eligible for forgiveness?
Only loans you received under the William D. Ford Federal Direct Loan (Direct Loan) Program are eligible for PSLF. Loans you received under the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan (Perkins Loan) Program, or any other student loan program are not eligible for PSLF.
If you have FFEL Program or Perkins Loan Program loans, you may consolidate them into a Direct Consolidation Loan to take advantage of PSLF. However, only payments you make on the new Direct Consolidation Loan will count toward the required 120 qualifying payments for PSLF. Payments made on your FFEL Program or Perkins Loan Program loans before you consolidated them, even if they were made under a qualifying repayment plan, do not count as qualifying PSLF payments. In addition, if you made qualifying payments on a Direct Loan and then consolidate it into a Direct Consolidation Loan, you must make 120 qualifying payments on the Direct Consolidation Loan.
