Navigating the Loan Forgiveness Program after Paying Down Your Loan
The PSLF program. Many of you might have heard of it. The acronym stands for Public Service Loan Forgiveness. It is a federal program that provides a way to pay back your loans that are held by the Federal Government (FedLoan Services).
After 120 regular payments (or 10 years), the remaining balance can be forgiven. The important condition is that you must be working the equivalent of full time at a public or non-profit entity (school, university, state or federal agency, etc.). I say equivalent because it could be a combination of part time jobs that add up to full time work.
There are many sources to get information on how to participate in this program.
I want to highlight two. The first one is the FedLoan Services website itself. This website is very informative and is the place to begin seeking information about the program, and the different repayment options. If you already have your loans held through FedLoan Services, you can check your status and decide on a payment program you want to participate in. It is also the place where you can upload the necessary documents to apply for the PSLF.
The second one I found on Facebook. It’s called the PSLF Program Support group.
This group is very well monitored for accuracy and relevance of content. I’ve learned an incredible amount from it. We are also encouraged to cheer everyone on wherever they are on their repayment journey. I engage as often as the notices come in my feed. Some folks post about the status of their application. Others post their loan forgiveness letter showing the Zero balance. It creates a sense of community; we are truly all in this together.
Why am I talking about loan forgiveness? Because quite frankly it is not talked about enough. We hear time and time again that college is too expensive, that you will be saddled with a bunch of debt and won’t be able to move on with your life. This rhetoric fosters a defeatist attitude and makes you give up on your goal and dream to go to college before you even begin. I’m here to tell you that you have to stop listening to the naysayers. You are worth the investment.
Right now, to go to college many of us have to take out loans. Fine. Do it. Understand that this is a debt – a good debt if you speak with financial advisors – that you will need to manage. One word of advice, go through the federal government for your loans. Private loans often do not have forgivable options unless you transfer them to the FedLoan services program.
Once your loans are managed through the Federal government, you have many options to redefine your payment options. They range from fixed monthly payments to income-dependent repayment plans, and so on. You can find out more on the FedLoan Build Your Strategy Page.
So why did I take out loans to go to college? Because I had to…and I wasn’t going to let paying for college get in my way of getting my education. I knew I would have to pay them back and was committed to doing so. Over time, and because of three degrees that I eventually earned, I accumulated close to $200,000 worth of student loan debt. That’s right, $200K! Scary, I know.
I worked with the folks at FedLoan services to figure out the best plan options for me – which changed over time – and did my best to meet my obligations. I am now taking advantage of the PSLF program to see about having the rest of my loans forgiven. My application is complete and it now a matter of time to see about the approval – partial or whole – of the amount of loan forgiveness. Fingers crossed!
The folks that work in the PSLF program are incredibly knowledgeable, patient, and kind. Every time I called and spoke with someone, it was the same thing…super friendly and they provided me with information I didn’t know about to consider that would benefit me. That is the difference when you are dealing with a public entity like FedLoan services, and a private entity like a bank. The options provided are to benefit you the borrower, not them the loan holder.
So, to sum it all up. If you have student loans, check out FedLoan services. See if you can get your private loans transferred. If your loans are already with them, learn to manage them. If you qualify for a loan forgiveness because you have worked for a public entity during the time of repayment, then apply ASAP. Let me know how it goes!