Regardless of whether you are another or a student in the past, on the off chance that you are facing loan obligation and your work in a public service position, it is to your greatest advantage to see whether you qualify for the forgiveness program ahead of time. You can call one of these services for a free consultation to perceive what programs you may qualify for.
On the off chance that you are skeptical about working with a paid service, you can go to the Department of Education’s site and look into the programs straightforwardly. You will want to understand what kind of federal loan or loans it is that you owe to help characterize your qualification standings. Not all loans will offer forgiveness, however they may be handled in a different manner to give help. It is the complications of numerous loans with various savings programs which drives borrowers to utilize professional services for social workers loan forgiveness .
Many people struggle when it comes to student loan repayment. Every year thousands of students finance their education through debt with the hope that they will find a better job opportunity and repay the obligation. Unfortunately, not all get a well-paid employment chance. Social workers are no exception. The average amount of debt highly exceeds the salary of social workers, which makes them unable to afford debt repayment. Social workers who received federal loans qualify for social workers loan forgiveness programs. Currently, several programs are available, but not all are suitable and effective to solve the debt challenges. This guide will give a detailed introduction to the existing social worker’s loan forgiveness programs.
If you think you might qualify for one of the programs or you have any concerns, contact Student Loans Resolved debt specialists. Our experts will analyze your finances and develop the most suitable option to get rid of debt concerns.
Short Overview of Social Workers Loan Forgiveness
Currently, social work loan forgiveness programs involve several opportunities. In this section, we will give an introduction to these programs. However, in subsequent sections, you can get more detailed information.
First, Public Service Loan Forgiveness is available for social workers. This program grants debt cancellation when the borrower makes 120 payments. Therefore, it takes around ten years to meet the eligibility condition.
Second, the National Health Service Corps Loan Repayment Program helps social workers to get $50,000 forgiveness to pay their loans. This social work loan forgiveness is delivered for two-year service in needed areas.
Next, borrowers can apply for Income-driven Repayment plans to get forgiveness. When an Income-driven repayment plan is utilized, the remaining debt after the payback period is forgiven.
Lastly, state governments can offer their benefits to social workers. For example, Oregon provides social workers loan forgiveness of up to $35,000 for those working full-time for a minimum of two years.
1. What is Public Service Loan Forgiveness?
PSLF is a type of social worker’s loan forgiveness that involves full-time employees in federal, local, state, tribal governments, and non-profit organizations. This program eliminates the rest of the outstanding balance after the debtor affords 120 qualifying payments.
Throughout the whole period, which takes a minimum of 10 years, the borrower should continue meeting the eligibility conditions for employment. In general, the eligibility list for this social work loan forgiveness is extensive, and you need to be well aware of the conditions before you apply.
Borrowers should have many qualifications for this loan forgiveness for social workers. As mentioned, only public work or non-profit employment qualifies for this program which also includes social workers. The social workers should serve full-time, defined as at least 30 hours per week.
The employer’s full-time work conditions can be higher than 30 hours but not lower. It is also possible to work part-time. However, you will need to find two or more employment opportunities so that the total of work hours will equal to full-time requirement. Besides, each employment chance you have should meet the employment criterion.
Only the borrowers of Direct Loans qualify for PSLF social workers loan forgiveness. Direct loans do not involve FFEL or Perkins Loan. Plus, if you have private student loans, this program is not for you.
Borrowers need to make 120 payments before they request this social work loan forgiveness program. These payments also require different details. Qualifying payments will be those:
Made on time -within 15 days after the due date
In full amount shown on the bill
Through Income-driven repayment plans
While having a qualifying employment
After October 2007
It is not obligatory to pay the debt when you are not required to do so- when you are in a loan forbearance period, deferment, in-school, or grace period.
10 Year Requirement
social workers loan forgiveness
As mentioned, PSLF social workers loan forgiveness program demands 120 qualifying payments before the borrower requests the debt to be canceled. 120 payments take a minimum of 10 years to be completed. It can take longer if the borrower misses some payments or the payments made do not qualify.
Keep in mind that this social work loan forgiveness program cannot be achieved in less than ten years. You cannot make payments of higher amounts such as payments of 3 months worth to speed up the process. In such a case, you will get 3 points out of 120, but you will need to wait three months to make another payment and receive the 4th point.
The eligibility condition requires that the borrower makes payments under Income-driven repayment plans. Such repayment plans have four different sub-plans for federal loan borrowers, including Revised Pay as You Earn, Pay as You Earn, etc. We will discuss four plans in detail later.
For now, keep in mind that those programs are based on income level and family size. It means, if you earn less, you will pay less. Similarly, if your income is high, the debt repayment amount will also be high. Such an approach to repayment makes it affordable to any borrower regardless of income level.
Besides, after the payback period, any remaining debt is canceled. We will discuss these programs in detail in the third section when we explain forgiveness through Income-driven repayment plans.