Did you know that a portion of an educational loan can be waived for public service employees? Debt management services can do a detailed analysis for you.
Many who now work in public services might have borrowed through a Professional PLUS Loan or Parent PLUS Loan. But did you know, as public service workers, you are entitled to have a certain portion of your loans forgiven? Yes, it’s true, but there are certain criteria you must meet to be eligible. Experts of debt management services give clear insight into those criteria:
- You must be a full-time public service job holder
- The outstanding educational loan should ideally be under the William D. Ford Direct Loan program
- There should be no defaults on the eligible loans
- You should have made at least 120 monthly payments since October 1, 2007
- You should have made your payments under a licensed repayment plan
- At the time of loan cancellation, you must be employed at a qualifying public service venue
Debt management services experts predict the loan cancellation will not happen until October 17, 2017, even if you started making payments in October 2007, because of the 120 payment requirement. But this is still a better option than being stuck with accumulated debt problems.
Companies offering debt management services lise the following jobs that qualify for the student loan forgiveness plan:
- Government sector
- Law enforcement
- Public safety
- Child care
- Family service agency
- Disability service
- Elderly service
- Tax-exempt organizations
- Emergency service
- Military sector
Getting a waiver on a student loan is not as easy as it sounds. Your repayment plans are also taken into consideration. Debt management experts have categorized the following plans:
Income based repayment
Your repayment plan is based on your income. However, Parent Direct PLUS borrowers are not eligible for this plan.
You can opt for repayment under the standard 10 year scheme.
Direct loan repayment
You can also opt for direct loan repayment if your monthly payment is similar to the standard 10 year repayment plan.
This loan forgiveness program is very much available for those with public sector jobs. You just need to be aware and plan ahead to take advantage of the program and reduce your debt problems. Once you are close to reaching the required 120 monthly debt payments, it is recommended that you contact the Direct Loan Servicing Center.