Student Loan Forgiveness

FOR PUBLIC SERVICE EMPLOYEES

PRESENTED BY: KAREN GOODENOUGH, MSW, LGSW, PHD STUDENT

TITLE IV-E NATIONAL ROUNDTABLE, 2015

TheConsumer Financial Protection Bureauestimates that…

Approximately one-quarter of workers in the U.S. qualify for

Public Service Loan Forgiveness and fail to take advantage of it.

Several National Programs

Eligibility criteria may include:

Type of employmentNumber of years employed in a specific areaTimeliness of loan paymentsPersonal issues and concerns, including illnesses, disabilities, and death

3 Different Ways Programs Work

Back-end forgiveness

Up-front forgiveness

Stipends

Back-End Forgiveness

The borrower works for a certain number of years in a certain field, at which point the borrower may apply to forgive his/her remaining student loan balance.

Program Example:◦ Public Service Loan Forgiveness Program

Up-Front Forgiveness

The borrower works in a certain field and gets his or her loan debt partially forgiven each year, until the balance is $0.

Program Example:◦ Federal Perkins Loan Forgiveness Program

Stipends

The borrower participates in a national program aimed to increase the number of qualified professionals in a certain field, for which the borrower receives a stipend for student loan repayment.

Program Examples:◦ National Health Service Corps (NHSC) Loan Repayment Program◦ Herbert S. Garten Loan Repayment Assistance Program

Discussion

What other national or state level programs are you aware of?

Do you currently share loan forgiveness information with your students or staff? How?

How will you share what you’ve learned today?

What additional resources would be helpful?