The public sector path to loan forgiveness

When something sounds too good to be true, it’s all right to become suspicious.

Here’s the good news: if you work at a nonprofit, you can make your federal student loan debt go away in ten years as long as you work in the public service sector all that time and make 120 monthly payments on your student loan.

This is awesome news for public sector types with a high student loan debt and low income. There are a number of restrictions worth studying sooner than later. For example, your loans will have to go through the federal direct loan program. If you’re loans aren’t direct loans currently and you want to participate in the program, you’ll need to consolidate. It could well be worth it to you down the road if you are able to shave 15 years off your student loan!

The finaid.org article covers the process of consolidating your loans into direct loans as well as some words of caution for holders of Perkins loans and tax implications down the road when the balance of your loan is discharged.

Also check out Equal Justice Work‘s new blog on public interest law and loan forgiveness for public service employment.

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