If you are a college professor with student loan debt, you may be eligible for Loan Forgiveness. The government offers several options for Loan Forgiveness, and we will discuss them in this blog post.
Keep in mind that the rules and regulations regarding Loan Forgiveness can change at any time, so it is essential to stay up-to-date on the latest information.
College professors between 2015 and 2016, who obtained a master of arts degree on average borrowed nearly $73,000 in student loans.
Let’s look at the different types of Loan Forgiveness available to college professors!
Student loan forgiveness for college professors
Student loan forgiveness for college professors can come in a few different forms. We’ll go over the most common types of forgiveness below.
- The Public Service Loan Forgiveness Program
- Income-Driven Repayment Plan Forgiveness
- Faculty Loan Repayment Program (FLRP)
The Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness Program (PSLF) is one of the most popular options for Loan Forgiveness for college professors. After ten years of full-time employment in a public service job, this program forgives the loan balance. Eligible jobs include government, military, law enforcement, and education positions.
To qualify for PSLFP, you must have made 120 qualifying payments on your federal student loans. You can make qualifying payments while you are still in school or during periods of deferment or forbearance.
One downside of the PSLFP is that it is not available to everyone. Only those who have Direct Loans are eligible for forgiveness.
5 Characteristics College Professors Must Fulfill to Qualify for Loan Forgiveness PSLF.
A qualifying employer for the Public Service Loan Forgiveness Program is a government agency, military organization, law enforcement agency, or 501(c)(3) nonprofit. The most common qualifying employers for college professors are government and education jobs.
Must Be Full-Time Employee
To qualify for PSLFP, you must be a full-time employee. This means you must work at least 30 hours per week.
Must-Have Eligible Loans
To qualify for the Public Service Loan Forgiveness Program, you must have eligible loans. Eligible loans are Direct Loans. If you have other types of loans, such as Stafford Loans or Perkins Loans, you may be able to consolidate them into a Direct Loan.
Must-Have An Eligible Repayment Plan
To qualify for PSLFP, you must be enrolled in an eligible repayment plan. The most common eligible repayment plans are the Standard Repayment Plan and the Income-Driven Repayment Plans.
The Standard Repayment Plan
The Standard Repayment Plan is the most common. This plan requires you to pay a fixed amount each month for ten years.
The Income-Driven Repayment Plans
The Income-Driven Repayment Plans are available for those who can’t afford their monthly student loan payments. There are four different plans: the Income-Based Repayment Plan, the Pay As You Earn Repayment Plan, the Revised Pay As You Earn Repayment
Must Make The 120 Qualifying Payments.
To qualify for the PSLFP, you must make 120 qualifying payments. A qualifying payment is a payment that is completed on time and in full. You can make qualifying payments while you are still in school or during periods of deferment or forbearance.
Income-Driven Repayment Plan Forgiveness
If you are struggling to make your monthly student loan payments, you may want to consider an income-driven repayment plan. This type of plan lowers your monthly payment based on your income and family size.
Under an income-driven repayment plan, your student loan will be forgiven after 20 or 25 years of payments (depending on the program).
Keep in mind that if you choose to have your loans forgiven through an income-driven repayment plan, the forgiven amount will be taxable.
There are two ways to get your student loan debt forgiven. Borrowers with federal student loans can get up to $40 thousand in relief. People who have private student loans and work at a health professions school can also get relief of up to $40 thousand.
Faculty Loan Repayment Programs (FLRP) for College Professors
Faculty Loan Repayment Programs (FLRP) are another option for Loan Forgiveness for college professors. State governments offer these programs and provide a way to repay student loans in exchange for teaching in high-need areas.
Each state has different eligibility requirements and benefits, so it’s essential to research the program in your state.
Some states offer loan forgiveness after a certain number of years of service, while others provide a lump-sum payment after completing service.
To find out more about the Faculty Loan Repayment Program in your state, visit the state government’s website or contact the department of education.
Do You Need Help With Your Student Loans?
If you’re feeling overwhelmed by all of this information, we’re here to assist. We’ve been assisting people just like you in getting out of default on their federal student loans for a long time.
Give us a call right now to schedule an appointment for a no-obligation consultation. We’ll develop a plan that takes your present financial position into account while also helping you achieve long-term aspirations.