Beginning in 2017, up to $1 billion in student loan debt is eligible for forgiveness through the US government. The new forgiveness plan called ‘Public Student Loan Forgiveness’ (PSLF) applies to certain borrowers that have been making regular government student loan payments and are enrolled in an income based repayment system.
Are you eligible for this new plan? Here’s a closer look at the many students that may find some debt relief through the PSLF plan in the near future.
In order to take advantage of the new loan forgiveness plan, borrowers must fall into one of three categories including:
- Those that currently work for the government or for the US military
- Those that work for a non-profit business and are in specific roles within that business
- Those that currently work for a 501(C)3 non-profit organization.
While loans are not forgiven right away, anyone that does meet the above qualifications can gain student loan forgiveness after a period of making on-time payments for ten years.
Borrowers that were delinquent during the past ten years cannot apply for this program, and the above requirements must be met in detail (in order to apply as an employee of a non-profit business, for example, you must meet one of the position specifications detailed by the US government).
The first wave of eligible borrowers will be able to apply for the PSLF plan beginning in July of 2017. It is estimated that approximately 14% of borrowers will be able to apply for this program, which translates into nearly $8000 in student loan debt forgiveness.
While not a large number (and while not applying to the majority of borrowers), this new government plan does provide some forgiveness to those that fit eligibility requirements.
Note that this plan does not apply to private loans. In order to apply for the new PSLF plan, you may have current government loans that are presently being repaid, and you must have applied for an income-sensitive repayment plan. Since the eligibility requirements are not cut and dry, it is best to speak with a qualified attorney if you believe that you may fall into one of the categories mentioned above.
Getting Your Case Evaluated
It is possible to gain some student loan forgiveness when it comes to federal student loans, but the specifics for doing so can be tricky. In order to make sure that you get what you deserve when it comes to student loan forgiveness, be sure to contact a lawyer who is well-versed in this area.