Federal Student Loan Forgiveness for Employees of a Non-Profit

Federal Student Loan Forgiveness for Employees of a Non-Profit

September 2021

1. Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is the most widely available nonprofit student loan forgiveness option. Unlike other programs, you don't need to work in a specific nonprofit job to become eligible for it. However, you do need to meet specific criteria, including the following:

? Working for a nonprofit or government organization ? Working full-time, which means meeting your employer's definition of full time or working at least 30

hours per week for any combination of eligible employers ? Having eligible loans, including Direct Loans or a Direct Consolidation Loan ? Making payments under a qualifying income-driven repayment plan

If you meet these requirements, you must make 120 qualifying payments on your income-driven plan. After you've done that, you can have the remaining balance of your loans forgiven.

You should submit an annual Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF Form) at least once per year or whenever you change employers to be sure that you are on track for forgiveness.

Unfortunately, Public Service Loan Forgiveness is not available for private student loans. You will need to explore other nonprofit employee student loan forgiveness options if you have private loan debt.

Qualifying Loans Include:

Federal Direct Subsidized Loans Federal Direct Unsubsidized Loans Federal Direct Grad PLUS Loans Federal Direct Parent PLUS Loans Direct Consolidation Loans

2. Loan forgiveness for health care workers

If you work as a health care provider for a qualifying organization, you can also become eligible for assistance repaying your loans through the National Health Service Corps state loan repayment assistance program.

To be eligible for nonprofit employee student loan forgiveness from this program, you must:

? Work in a Health Professionals Shortage Area at either a public or nonprofit facility ? Make a two-year work commitment

YMCA OF GREATER SEATTLE 909 4th Avenue, Seattle, WA 98104 P 206 382 5004 F 206 382 7283

? Work in the field of mental health; dental health; or primary care ? Be an eligible medical professional including an MD; DO; dentist or registered dental hygienist; nurse

practitioner or registered nurse; certified-nurse midwife; physician assistant; licensed clinical social worker; psychiatric nurse specialist; health service psychologist or licensed professional counselor; marriage or family therapist; pharmacist; or substance use disorder counselor This program doesn't exactly provide nonprofit student loan forgiveness since your loan balance isn't being forgiven. Instead, it offers up to $50,000 in student loan repayment assistance if you commit to a two-year term working full-time or up to $25,000 if you commit to a two-year term working part-time. You can apply for a continuation of the service contract after your initial two-year period and obtain additional loan repayment funds. However, there is no guarantee you will be able to renew your contract. Repayment funds can be used to pay off federal or private student loans that were obtained to pay undergraduate or graduate tuition, educational expenses, or reasonable living expenses. Sources: Student Loan Forgiveness for Non-Profit Employees () 2020 Guide to the Best Federal Student Loan Forgiveness Programs | FSLD ()

YMCA OF GREATER SEATTLE 909 4th Avenue, Seattle, WA 98104 P 206 382 5004 F 206 382 7283

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