2020 Guide to Non-Profit Student Loan Forgiveness

241 Comments

1. Loddi February 18, 2020

   Hello. I just want to know can it be your own nonprofit that you work for?

   Reply
   • Tim Marshall March 21, 2020

     Hi Loddi,

     As long as you satisfy the requirements, yes.

     Reply
2. robert mcgrath January 19, 2020

   Can someone explain to me how, after paying 680$ a month for 10 years (81,600) on an extended payment plan, I still owe $105, 000? AND they said I didn’t qualify for the loan forgiveness program because extended wasn’t a category that qualified AND I’m a public teacher, AND I was denied for the Temp LFP. Isn’t the goal to give public servants who make good (no late payments) and pay a substantial portion of their loan (80% paid) some relief????

   This is a no brianer and I know I’m not alone. I’m in NH and its the only question I’m asking the candidates. AND if I hear free education one more time, I’m going to lose my mind. Thats not the answer either.

   Reply
   • Tim Marshall March 27, 2020

     You’re probably not paying enough to cover the interest, so your debt accumulates even more than you pay off each month.

     Reply
3. Kristin January 16, 2020

   Hi, my name is Kristin, and I volunteer for a non-profit organization and I hold one of it’s offices (secretary). I don’t get paid. Can these hours be considered for loan forgiveness.

   Reply
   • Tim Marshall March 27, 2020

     Hi Kristin,

     You have to work full-time for the organization. I’m not sure about the not getting paid part. Ask the HR person, they should be able to tell you.

     Reply
4. Nate Ainley December 11, 2019

   Hi, Tim. After reviewing this whole article (which was very helpful), I didn’t see a link or description of how to “certify” my job each year. I would like to get that process started. I’ve been working for 4.5 years as a therapist for a nonprofit mental health counseling agency. Clearly, I can’t apply for another 5.5 years, but I’d like to certify my job. Thanks for your help, Tim.

   Reply
   • Tim Marshall March 27, 2020

     Hi Nate,

     You need to talk to your HR department to figure out what their process is.

     Reply
5. madeline December 10, 2019

   If I create a 501c3, with others that can certify me as an employee, would I remain in the PSLF program which I am currently in. I would like to change career. I am actually looking to retire but I still have 3 more years to pay loans.

   Reply
   • Tim Marshall March 27, 2020

     Hi Madeline,

     Yeah, so, I don’t think so, but possibly? Talk to someone at DOE or an attorney before trying this.

     Reply
6. Pingback: What to Do When Student Loan Payments Are Due – NextStepU December 5, 2019
7. Avalon DeAvila October 15, 2019

   Hi Tim,
   I am so happy I stumbled upon your site. I will be sure to copy and send your website link to many of my peers.

   I am currently working toward PSLF under the PAYE repayment plan. I’m about 2 years in with $60k. When graduating, I heard about a company called student loan direct 1, which offers services to assist with choosing the right plan and staying on top of repayment (checking all of the boxes to be sure you qualify after that 10 year period). I was trepedatious at first after hearing horror stories about these companies scamming others. After doing some research, I decided to pay a fee for them to assist me, and it’s seemed to work in my favor thus far. How do you feel about these types of services?

   I’ve also had conflicting answers as it relates to paying interest during the life of the loan and PSLF program. Through the research you’ve done, should we pay on interest even though our monthly payment is at $0? I’ve been told “no” since it will be entirely forgiven with successful completion of PSLF program. I’ve also been told to make small payments on interest. So far, I have not made any extra payments.

   Lastly, any advise on getting employers to complete the ECF? My previous place of employment has not completed it after multiple requests! It is frustrating.

   Reply
   • Tim Marshall March 27, 2020

     Thanks Avalon!

     I can’t comment on any particular programs, but I actually promote that people use a similar company right here because most people can’t figure out how to deal with their loans on their own. Just be aware that these third parties can’t do anything for you that you can’t do yourself. The reason to use them is that they’re experts in all the rules and regulations.

     You need to keep hammering HR asking for the ECF. It’s their job to provide it.

     Reply
8. Kelly September 7, 2019

   My niece will have worked 10 and a half months in a full-time federal government position, which has been an awful fit. She submitted the PSLF paperwork at the beginning of her employment. She’s resigned and is starting a new position with a non-profit conservancy. `1.) Before she leaves the first job, does she need to submit any paperwork so that those months will count. .2.) When she starts the new job, does she need to submit new paperwork. If the answer to either question is “yes,” what paperwork does she need to complete?

   Reply
   • Tim Marshall March 28, 2020

     Hi Kelly,

     So, working for a Non-Profit will still count for the Public Service Loan Forgiveness Program, and yeah, she’s going to have to submit new paperwork and certify her employment again, etc. Have her contact her loan servicer and her HR department for details.

     Reply
9. Wes August 29, 2019

   Hey Tim,
   This is some great information, so thank you so much. Would love to grab a beer sometime and pick your brain with all this info. If only you lived in New Mexico haha. Anyway, I am a final year pharmacy student and will be graduating here soon with roughly 150k in debt. I am hoping to get into a 2 year post-doc fellowship under a non profit organization and then continue on with that organization as long as possible after the fellowship is done. The thing is, this non profit works side by side with the VA hospital system and very frequently the VA hires the non profit employees over to work for them. My main questions is, will I be able to qualify my 10 years of loan repayment, (of coarse exactly how you stated with 30+ hours/full time, an IBR system, on time payments), if I work some of the 10 years with the non profit company and then the rest of the 10 years with the government as a VA employee? Or will that just confuse the people at the offices where you send your application for this whole thing?

   Reply
   • Tim Marshall March 30, 2020

     Hi Wes,

     I’d love to take you up on that sometime!

     Yes, you’re able to move around and change jobs as long as your job continues to qualify. The way they calculate your eligibility is PER PAYMENT, so each time you make a payment on time and in full, while your job satisfies the conditions of the employment rules, that payment will count.

     After you’ve done that 120 times, you’ll get the forgiveness benefit.

     You can move around jobs, stop working for a non-profit, go back to a qualifying non-profit later, etc., and it’s all good. Don’t think of it as requiring 10 years, but 120 payments.

     Good luck!

     Reply
10. Adam August 15, 2019

    Three questions: (Thank you so much)

    1.) Can I consolidate my perkin loan with either one of my subsidized or unsubsidized loans? (other words do you get the choice? because if so I would definitely go with the subsidized)

    2.) Does consolidating my perkins loan with my direct loans reverse my 5 qualifying payments towards PSLF?

    3.) Are there really any downsides with consolidating one of my perkins loan with my direct if I am already having to make payments on both. I get a low installment plan cost per month, so want to benefit from that with my perkins loan as well.

    Reply
    • Tim Marshall March 30, 2020

      Hi Adam,

      1. Um, why would you? Perkins Loan Forgiveness is better than some of the other Federal Loan Forgiveness benefits, and if you consolidate, you’ll lose access to that program.

      2. Well, yeah, you’d have a new loan now so I’m pretty sure you’d basically be starting over? You may need to check with DOE on that one though.

      3. Yes, I don’t like consolidations from different types of loan programs. Usually it means sacrificing the benefits of the better program.

      Reply
11. GH August 10, 2019

    Thank you for your very informative page! I’ve known about this program for years, but I’ve waited to apply, knowing it would be after October 2019 that I would qualify. My question, however, is how to ‘Certify’ my employment? I’ve worked for two separate non-profits during this time (3 years at one and now nearly 7 years at the other), and I would like to get the proof of employment from them in advance, but to whom do I send it to be sure I qualify? I started at the one job at about 25 hours a week but was quickly over 30, so I need to find out when that happened to know exactly *when* I should send in my application as having completed the 120 qualifying payments. Thank you for your time and expertise.

    Reply
    • Tim Marshall March 30, 2020

      Hi GH,

      You will certify your employment by contacting your HR department and then providing some details to your loan servicing company.

      You should certify each year to make sure that you’re on track, so start now.

      Reply
12. Anthony June 3, 2019

    Hi,

    I worked for a company 4/16/12 to 12/26/17 that I used an Employee ID number (EIN) that was listed under the company foundation which MyfedLoan and US DEPT of Education did reply in written statements that was approved for those dates as qualifying with over 60 payments qualifying under this company for PSLF. I received a letter on May 30, 2019 stating that the EIN number they approved was not matching my W2 tax labeled EIN number and they did not catch that for those years submitted. My former company is listed as a Not For profit health company (rehab hospital). The EIN they are now using as correct reference does not show up on the IRS.gov as a tax exempt organization when I search for it but the EIN I used (company foundation number) is listed as IRS.gov tax exempt qualifying. The company I worked for listed the foundation tax exempt status on all posters, public relations related information selling themselves as a not for profit qualifying company.

    Is this a matter I should consider a lawyer since there have been over 5+ years of employment that MyfedLoan have written in statements that I was approved in annual Employment certificaton forms under my company name and now Myfedloan have informed me years later of a discrepancy and likely reversal of ECF approved forms. All my loans currently do qualify for PSLF. The MyfedLoan employee I spoke with on phone pretty much said my EIN number that I should of been using and which was not listed on ECF is likely to be denied since IRS.gov site is not confirming it as qualifying.

    There is a section on your article that states not-for profit companies or organizations that provide a specific purpose (in my case a health care rehabilitation hospital that excels in quality patient care) that I am wondering if I have a chance in getting my time employed with that company to count towards my PSLF instead of losing all my time accrued.

    Is the US Dept of Education or MyfedLoan liable if they reversed my years of approved ECF forms?

    Thank you for your time. Please feel free to comment or email me.

    Reply
    • Tim Marshall June 17, 2019

      Hi Anthony,

      Try contacting the Student Loan Ombudsman Group to see if they can help you with this problem, as they are a group of Government-backed attorneys who offer FREE legal assistance for student loan-related problems. You can find details about them here: https://studentaid.ed.gov/sa/repay-loans/disputes/prepare

      They’re going to be your best bet at sorting out what is possible here, and they SHOULD be able to help. Even if they can’t, you could ask them for a recommendation on where to go next (hiring your own attorney, filing something with the Department of Education, contacting the Consumer Financial Protection Bureau, etc.).

      Good question, and good luck!

      Reply
13. Russell May 30, 2019

    Hi Tim. I owed over 50k and after applying for IDR (Income driven repayment) and qualifying for $0 per month, my total went down from 50 to 39k… Is this a mistake? Where did the other 10k go? Did they also forgive my accumulated interest or is it floating around to haunt me down the line?

    Also… I am applying for loan forgiveness because I have been at a non profit for years. After 10 years, will it pay off the entire amount or just up to a certain amount?

    Reply
    • Tim Marshall June 26, 2019

      Hi Russell,

      Yeah – that doesn’t make sense that debt would just disappear, but there’s no way to tell what happened. I would speak with your servicing company to find out what went wrong there.

      Yes, your ENTIRE loan amount will be forgiven after 10 years of non-profit work. AND you won’t owe any taxes on the debt that gets forgiven. PSLF is the single-best forgiveness program on offer, so make sure you do everything in your power to qualify for it!

      Reply
14. Heather Valley May 2, 2019

    Thank you for all of the great information! If I were to start my own non profit organization and work 30+ hours for the non profit would that qualify?

    Reply
    • Tim Marshall May 10, 2019

      Good question Heather. I have never been able to get a solid answer on this one, but my thinking is that as long as you are listed as an employee of the company, working 30+ hours per week, then yes, it would work.

      Reply
15. Sabrina May 1, 2019

    Hi Tim,

    Thank you for all the fantastic information! Two questions I have are regarding the eligibility of the employer I’m about to begin working with for the PSLF program, and what advice you would give to the person creating the non profit organization. My daughter owns a restaurant and is starting an official non-profit (separate from the restaurant) for donating food that would normally go to waste at local restaurants to local food banks, organizations to feed the hungry, etc. If she were to start this and receive tax exempt status under IRS 501(c)(3) rules and I work full time there, will I quality to have the Parent Plus Loan forgiven? My concern is that while it may be a tax exempt entity, it doesn’t necessarily fall under the listed “categories” of non profit qualified employers (meaning, it isn’t technically public health completely and it isn’t completely services for the disabled and elderly, but it kind of stretches across a couple of categories, if that makes sense). What should I tell her to ensure she confirms before finalizing setup of her non profit I’ve described if I want to be eligible for the loan forgiveness? While loan forgiveness isn’t her intent in establishing the non profit, she is open to structuring it in a way that helps her employees who are struggling with crippling student loan debt as a side effect to the work she is doing.

    Reply
    • Tim Marshall May 15, 2019

      Hi Sabrina,

      I really can’t tell you exactly how to structure a Non-Profit in order to make this work. That’s something that should come from an attorney or perhaps the Department of Education itself. I’d probably use an attorney first.

      For details on Parent PLUS Loans, look at my Guide to Parent PLUS Loan Forgiveness.

      Good luck!

      Reply
16. Samantha April 13, 2019

    Hi ,
    Thank you for creating the website. I applied for student loan forgiveness i was rejected because my loan was not consolidated PSLF and was asked to try to consolidate it into PSLF loan.
    At the same time i was told because my student loand were not eligible for PSLF, they didnt evaluate the eligibility of my employer.. i looked up my employer ,Kaiser Permanente, who is a not for profit is under tax exempt 501c3. Currently i have 110k left of my goverment student loans and paid off 100k of the total.of 210k with 16 years . Do you think i qualify for the loan forgiveness if i now consolidate my loans to PSLF?

    Reply
    • Tim Marshall April 18, 2019

      Hi Samantha,

      You’re getting the responses totally mixed up here. A not is never “consolidated PSLF”, but to qualify for PSLF, it has to be a “Direct” loan, and you probably were told to combine several Federal student loans into a Direct Consolidation Loan, because yours weren’t eligible for forgiveness benefits, but a Direct Loan is.

      If Kaiser is a non profit and is tax exempt then your employment should count, but only if you’re working full-time (at least 30 hours per week), and then yes, you’re going to need to turn your non-eligible loans into an eligible Direct Consolidation Loan. Make sure you only consolidate Federal loans, however, because it’s possible to combine private debt with Federal debt, and that will get you a loan that’s NOT eligible for PSLF.

      You need to speak with your loan servicer to tell them that you want the Direct Consolidation Loan so that you can qualify for PSLF, and then make sure that you get enrolled in one of the Income-Driven Federal Student Loan Repayment Plans, as those are the only plans where monthly payments will count towards the PSLF requirement (120 qualifying monthly payments).

      Look at my page on the Public Service Loan Forgiveness Program for details about how all this works. It’s all explained there.

      Reply
17. Brad April 5, 2019

    Hi!

    For my first two years on the PSLF plan, my income was so low that they assigned me a $0 monthly payment (I know, it was rough season). I regularly gave verification of my employment at the non-profit and updated my salary at the intervals they requested throughout this time to verify the status quo. So, my question is, since I didn’t officially give money during that time, due to my IBR amount being $0, do I still get credit for those 24 months? I called my loan holder and the PSLF department multiple times to ask this question and got verbal affirmations from them every time that it did count toward the 120 payment threshold, but I never received it in writing and it constantly worries me. I even offered to just send $5 a month during that time and they said it wasn’t necessary. Is there any way to get firm affirmation of this? What are your thoughts? Also, if they don’t count, do you think I would be able to contact them and back-pay a low, monthly payment amount for the months I was enrolled in the PSLF program, but was at the $0 threshold ?

    Reply
    • Tim Marshall April 8, 2019

      Hi Brad,

      YES! Even with a $0 payment, as long as that was the payment required by your Income-Driven Repayment Plan, those payments will still count.

      Reply
18. Angel April 3, 2019

    WOW so many questions here! and what a great informative, hope-giving site you’ve made!! Thank you! Now this may have already been asked, but I couldn’t read through all of them. I borrowed $15 K to go to school, they laughed and said school had nothing to do with how I’d make a living, so I quit going and quit borrowing, and life has been challenging. I tried to pay a few years here and there on my loan, but it grew and grew…. even went into default once. It is now $67K… no, that’s not a misprint. Now I’m getting divorced and I’m getting this house, but there’s this insanely blown up student loan looming over everything. I’m 53 with a special needs tween, going through a divorce, and have a very low income and a ten year gap in my resume I’ve got to work miracles on. If I get this house, are student loans going to put a lien on it that’ll keep me trapped here forever? or take every penny of profit if I sell it? (leaving me with nothing in my old age). I’m trying to get a job with the public schools so I can be off work when my kiddo is out of school and avoid paying for extra care, but won’t know until summer time, so is there something special I should do when applying for IBR if I know I’m going to be working in a public school? Even IBR tends to ask for more than I can pay sometimes…. so I don’t know how I’m going to handle it. Don’t you think $15K turning into $67K over the past decade is pretty harsh though? And that was after some years of trying to pay it down! I feel like there’s no recourse and this is way too much interest and penalties to pay in my lifetime.

    Reply
    • Tim Marshall April 5, 2019

      Hi Angel,

      I wish I could tell you if the lenders would put a lien on your house, but there’s honestly no way to know.

      Are your loans Federal or Private?

      Sounds like they’re Federal because you’re referring to IBR.

      If your loans are Federal, then my advice would be to get that job working in SOME KIND of Full-Time Government Position, or some other role that qualifies for the Public Service Loan Forgiveness Program.

      This would allow you to make just 10 years worth of qualifying Income-Driven Payments, and then have the rest of the debt discharged, without even being required to pay any taxes on the amount of money forgiven.

      I think this is harsh, but it honestly is the way it goes. Interest is insane if you let it get away from you, and your story is not unique, but if you can get into PSLF, you’ll have a great shot of getting rid of this debt!

      Reply
19. Matt Dear March 13, 2019

    Hi thank you for this really informative forum. I am a new grad nurse with a nice amount of loans, in addition to my nursing job I volunteer for two community service volunteer organizations which are both 501c3. Can I use my volunteer hours for the forgiveness program?

    Reply
    • Tim Marshall March 17, 2019

      Hi Matt,

      No – you have to be working FULL TIME for a 501(c)(3) in order for your service to count for PSLF.

      Reply
      • Ashley November 12, 2019

        Hi Tim,

        if i volunteer FULL TIME, will i be qualified for PSLF? or do i need to claim that on my tax to be qualified? Thank you!

        Reply
        • Tim Marshall March 27, 2020

          Hi Ashley,

          I don’t think that being a volunteer will count, but ask the HR department at the place you’re considering doing it.

          Reply
20. Rachel February 9, 2019

    Hello. I have a few questions.

    1) What does it mean when it says that the term on the loan is 300 months? That’s 25 years. My co-worker is on her 24 year of having these student loans. In 24 years, she’s paid very little.
    2) When you apply for a “Loan Forgiveness” program, if approved, which loans are forgiven (subsidized to unsubsidized)? If no approved, which loans should one tackle first and why?
    3) I was told that you pay taxes on all money forgiven through the forgiveness program. Is this true?

    Thank you in advance.

    Reply
    • Tim Marshall February 12, 2019

      Hi Rachel,

      1) It means exactly what you said. Some people have had loans for ages and paid very little. Her loans are likely in Delinquency or Default, or she’s enrolled in an Income-Based Repayment Plan and makes very little money, so she hasn’t had to pay much against the debt

      2) Both Subsidized and Unsubsidized Loans can be forgiven, but you may still end up owing interest on Unsubsidized loans, depending on which Forgiveness Program you’re using. You’re asking a VERY general question that is basically impossible to answer. If not approved, tackle Unsubsidized loans first, always, because the Government does NOT cover interest accumulation on Unsubsidized loans, so they end up being way more expensive in the long-run.

      3) You do pay taxes on all money forgiven via some of the Forgiveness Programs, but it depends on which forgiveness program you’re using, and what types of loans you have in the first place. This is all explained in the page you posted a Comment on. Try reading the whole Guide and you’ll find a ton of detail about this specific question. Look at the section called “Will I Owe Taxes on the Forgiven Debt?”.

      Thanks for stopping by!

      Reply
21. candra tuladhar February 7, 2019

    Hi Tim,
    I currently work for a non-profit mental health and substance abuse clinic for 12 years. We got a union about 6 years ago and according to the requirements I don’t qualify. I have been paying my loans which are consolidated for over ten years. Any thoughts?

    Reply
    • Tim Marshall February 7, 2019

      Hi Candra,

      Well, if you don’t qualify, you don’t qualify. Since you work for a Substance Abuse Clinic, however, I would look into the Substance Use Disorder Workforce Loan Repayment Program. There’s a good chance you’ll be able to qualify for these benefits, which offer $75,000 for 3 years of full-time work in a SUD program. You have to be in an HPSA though, so it may require moving jobs if you aren’t already in a high-need clinic.

      Reply
22. Michael January 28, 2019

    Three questions:

    1) What is the outcome when a borrower works for a 501(c)(3) and receives 1099 income (assuming that borrower worked an average of 30 hours per week under the contract during the relevant time period.).

    2) What is the outcome when a borrower works for an international organization not incorporated under US tax laws, for example, a UN Agency?.

    3) Suppose a borrower accepts an administrative deferment while s/he is working to complete an IBR renewal application (e.g. complete tax returns), and once the IBR application is completed and processed, it is determined that the borrower’s monthly payments are set at $0.00. Can one argue that “payments” made during the administrative deferral were made timely since no money was owed and, therefore, those payments were, in fact, made “in full?” More importantly, will that argument win?

    Thanks!

    Michael

    Reply
    • Tim Marshall January 29, 2019

      Hi Michael,

      1) If you get 1099 income then you don’t actually work for a 501(c)(3) and will not qualify. That’s my understanding, at least. You should consult with an attorney or contact the Department of Education to confirm.

      2) I don’t think you will be eligible in this case either, but it’s possible that you could find some loophole that still allows you to qualify. I’d say chances are very low, however, and again, you’ll need to speak with DOE.

      3) No, “payments” made during a Deferral or Forbearance don’t count. The only payments that count are those made while enrolled in one of the Income-Based Repayment Plans.

      If you have trouble getting in touch with someone at DOE, try contacting the Student Loan Ombudsman Group. This is a group of Government-backed attorneys who offer free legal advice on student loan-related problems, and they should be able to comment on all three of your questions with actual authority, whereas I’m just speculating based on what I know and have seen!

      Reply
      • Simone April 6, 2019

        The last reply is interesting to me because with the administrate forbearance I was given this month due to the discharge application I put in against DeVry that means this time frame will not qualify for student loan forgiveness. I worked at two different non profit agencies for a total of about 7 years and 5 months and have already submitted the employer verifications to my loan servicer. One was approved but the other was not. They didn’t tell me why Goodwill Industries (filed as a non-profit company) didn’t qualify. I was only there for 5 months but they said every month counts! Now I’m thinking about voluntarily removing the forbearance and making the IDR payments that I originally planned to pay. Decisions…decisions. I don’t know how much longer I’ll have to wait on for a decision on the loan discharge because I’ve been waiting since 2017 just like everyone else.

        I didn’t have one in 2018 for some reason.

        Reply
        • Tim Marshall April 8, 2019

          Hi Simone,

          Unfortunately, as long as Betsy DeVos is at the helm of the Department of Education, I don’t think things will get any clearer, faster, or friendlier to borrowers. DOE clearly sides with the for-profit schools and against the ordinary borrower most of the time. We really need the Democrats (or some Independent) to hit a home run in the 2020 Presidential Election and take Donald Trump out of office, otherwise it’s probably going to be 4 more years of the same stuff.

          Reply
        • Stacy R. December 27, 2019

          Hi Simone,
          Did you ever find out why Goodwill Industry didn’t count? I have been working on forming my own 501(c)(3) to provide work for my disabled daughter and I really think a Thrift Shop is the way to go to meet her needs and to provide employment to those who need student loan forgiveness. My aim is to employ borrowers that have struggled with basic needs such as buying/renting a home or getting gainful employment because income to debt ratio or lower credit scores due to student loans. Any info they gave you may help.

          Thank you,
          Stacy

          Reply
23. Lisa January 22, 2019

    Good Afternoon,
    I’ve worked for a qualifying employer for over 10 years. Unfortunately, I was misinformed along the way, with SallieMae (prior to Navient taking over my loans).
    I wasn’t ever informed I needed to consolidate to the Direct Loans until after the ten year period.
    I know I’m not alone. Many, many others were misinformed and have done over 10 years in public service. Navient’s advice to start now, and serve another 10 years and pay another 10 years isn’t sitting well. I was initially advised not to consolidate w/Direct Loans after this came to light, because it would hinder any chances at resolution.
    Could you provide the best advice to those in this situation?
    Thank you!

    Reply
    • Tim Marshall January 23, 2019

      Hi Lisa,

      I think you may be eligible for a Borrower’s Defense Discharge due to them advising you to do the wrong thing. I would try filing a BDAR Application against Navient if I were you.

      Reply
24. dino January 22, 2019

    Hi Tim,
    While 30 hours per week on average are required, what is the requirement for income? I know that the non profit work cannot be volunteer based. It must be employment, but they do not designate what the hourly pay must be. Must it be minimum wage? Can it be one dollar per month?

    Reply
    • Tim Marshall January 23, 2019

      Hi Dino,

      As far as I know there’s no rule about how much you earn. As long as you’re working 30+ hours per week, you’re covered.

      Reply
25. Amanda January 16, 2019

    Are nonprofit and not for profit considered the same for loan forgiveness? I know it isn’t the same technically..

    Reply
    • Tim Marshall January 16, 2019

      Hi Amanda,

      The designation that matters is if the company is a 501(c)(3). Nonprofit and Not for Profit are the common parlance, but not the legal definition used for eligibility conditions of the Public Service Loan Forgiveness Program.

      Good question and thank you for asking!

      Reply
    • Laura January 18, 2019

      Hello. I was paying on the IBR for about 5 years then decided to go back to school. At that time my loans went into deferment I believe. My question is once I graduate and I start back paying on the IBR does my 10 year start over or will the previous 5 be taken into account ? I have been at a nonprofit organization for the last eight years and I plan on staying there upon graduation .

      Reply
      • Tim Marshall January 23, 2019

        Hi Laura,

        Your previous payments will still count. They don’t have to be made consecutively.

        Reply
26. Selena January 10, 2019

    I have been paying my loans back under the income based repayment plan for about 8 years now. I work at an apartment complex that is 501c3 for 15 years. Would this qualify me for the forgiveness?

    Reply
    • Tim Marshall January 14, 2019

      Hi Selena,

      Do you work for this 501c3 full time? If so, it’s possible that you’re getting REALLY, REALLY close to a Public Service Loan Forgiveness Discharge!

      Reply
27. Lisa Polk December 5, 2018

    I have about 45,000. in plus loans with Nelnet. I recently completed chapter 13 bankruptcy so I have not been able to access my Nelnet documentation while I was in bankruptcy. My bankruptcy trustee made my loan payments and I could not view the Nelnet account online, I have been very careful to make all the payments on time because I was told by Nelnet that I should qualify for Public Service loan forgiveness. I am a public school counselor. I spoke with Nelnet and Fedloan prior to starting Chapter 13 bankruptcy due to a divorce and both parties, Nelnet and Studentloans.gov verified this. My employer has been approved I have that documentation. .Today I called Nelnet because I still cannot access my account upon completion of 5 years of bankruptcy and I was told that I don’t qualify because I am in the wrong repayment plan and my loans are not all consolidated. I thought my loans had been consolidated when my son finished college in 2011. My loan balance is currently more than it was when I started the bankruptcy because my payments have only been going to interest. Had I known this I would have taken care of it before the bankruptcy payments began. The student loan payments were made out of my Chapter 13 payment. I have spoken with several different people at fedloan and at Nelnet over the past 10 years as I was planning for my loans to be cancelled. Today I was told that my 10 years would start over when I moved to the income based repayment plan and my loans are consolidated. I don’t know how to proceed. At this point I have been out of bankruptcy since late October and I still cannot access my account which is why I called. The representative stated that the account was not cleared yet to be released to me so that I can view it. It should be another week or so. I was worried that if I miss payments my forgiveness would be voided. I have had to contact them yearly to get documentation of the interest I have paid for tax purposes. Turns out it doesn’t matter anyway. I’m 55 years old, I plan to retire one day. I have currently had and paid student loan payments most of my adult life. First for me then for my kids. I’m not trying to make this a sob story, I’m just so frustrated by the conflicting information that I’ve received. I honestly thought I had hit the 10 year point in 2017, at that point I was told I would have to finish my bankruptcy.

    Reply
    • Tim Marshall December 5, 2018

      Hi Lisa,

      I would highly advise that you get in touch with the Student Loan Ombudsman Group immediately! I mean call them RIGHT NOW! Google their name to find their contact information, and rest assured that you can trust them, because this is a group of Government-backed lawyers who offer free legal advice on Federal student loan-related issues.

      They can and will help you figure out what you need to do here, and whether or not you can still get approval for the discharge even if you were on the wrong repayment plan. It’s possible that this is Nelnet/Fedloan’s fault, and that you may be eligible for a Borrower’s Defense Discharge if the PSLF forgiveness is out of reach because of the repayment plan issue.

      Do not give up – contact the Ombudsman Group RIGHT NOW and get back on the path to becoming debt free!

      Reply
28. Gloria Jones November 27, 2018

    I have worked for a qualifying company and received credit for ten years of employment during the ten years. I started paying the monthly payments 5 years ago. If I leave my current employer, to retire, can I continue making payments for five more years and get the loan forgiveness?

    Reply
    • Tim Marshall November 27, 2018

      Hi Gloria,

      Unfortunately, no, if you leave your employer and retire then no further payments will count towards the 120 threshold. You could leave your employer and get a new qualifying job at a different nonprofit or Gov’t institution, but you do have to be working, and full-time, in order for your payments to count toward PSLF.

      Reply
29. Sara Marquardt November 2, 2018

    Hi Tim!
    This is an amzaing site!
    My question is if I am currently making payments on my federal loan but I am still in grad school (loans in grace) will this qualify as part of my 120 payments or do I have to be graduated.
    Thank you
    Sara

    Reply
    • Tim Marshall November 26, 2018

      Hi Sara,

      You do not need to be graduated for the payments to count – that is not listed in the requirements. Thanks for the kind words!

      Reply
30. Karen Y Arnold October 20, 2018

    Hi Tim,
    May I ask you about the parent plus loans? I have three children that went to college and was not able to get loans on their own as freshmen so I had to take out a parent plus loan for each of my kids. What type of loan relief programs do they have for parents that helped pay for the kids college? Also, one of the schools my child went to end up closing after he graduated due to mishandling funds and other charges. The Department of Education is still expecting us to pay off the loans. How can we dispute these loans if the school overcharged and loss the lawsuit?
    Thanks in advance for your response.

    Reply
    • Tim Marshall November 26, 2018

      Hi Karen,

      Unfortunately, Parent Plus Loans are tricky, and in a lot of instances, there are basically no ways to get relief or at least outright forgiveness on them. You should contact your Servicer and ask if they have any options. It’s really, really difficult to deal with Parent Plus Loans because while Congress offers all sorts of relief to younger American borrowers, they seem to take the opinion that actual adults would know better and avoid making bad financial decisions when it comes to Parent Plus Loans, but this is obviously not the case. I get tons of requests to help with them, but there’s honestly very little I can offer in the way of assistance. Sorry to be the bearer of bad news.

      Reply
31. Donielle Paul September 28, 2018

    Hello,
    I work for a hospital which is non-profit, and I believe I have the type of loans which qualify for loan-forgiveness. I have been paying on these loans since 2009, but there were times that I was late with payments. I also don’t think I’m on income-based repayment. If I was to demonstrate 10 years of on-time loan payments, would I still be eligible for repayment? For example, I switch my loans over to income-based repayment and then from that point all of my payments are on time for 10 years, then could I be eligible?
    Thank you,
    Donielle

    Reply
    • Tim Marshall October 9, 2018

      Hi Donielle,

      The short answer to your question is YES!

      My advice for you is to get enrolled in an Income-Based Repayment Plan IMMEDIATELY so that you can start taking advantage of the excellent Federal Forgiveness Programs available, like the Public Service Loan Forgiveness Program (which covers Non-Profit Employees!). You won’t be able to take credit retroactively for any payments that were made under any non-eligible repayment plans, so make sure to switch right away and you can start counting toward the 120 required payments.

      Reply
32. Dawn Miller September 14, 2018

    Hi Tim,
    I am enrolled in the Borrow Defense and I have not paid anything since they put it in deferment.
    I’m not even sure who I would pay. If I go to my online account and make a lump sum payment it will all go to interest correct? I’m ok with that I just was misled again about how all this works.
    I would like to make monthly payments but according to my IBR it would be so much there is no way I could pay it. What do you suggest?

    Reply
    • Tim Marshall October 15, 2018

      Hi Dawn,

      If you go into your account and make a lump sum payment, it’ll probably go to interest. You need to find out who your Loan Servicer is – look at your bills, they should say who you’re supposed to be paying; that’s your Servicing Company. Get in touch with them and ask for details. Figure it out, because you’ll never get rid of it without understanding what’s going on!

      Reply
33. Sam September 13, 2018

    Hello Tim,

    For the past ten years working while working for a non profit I have been paying the student loans for both me and my wife. My wife has raised our children and not “worked”. Are both of loans eligible for this program? Thanks, Sam

    Reply
    • Tim Marshall November 26, 2018

      Hi Sam,

      Unfortunately, only your loans will be eligible. Your wife would need to also hold a qualifying job in order for her loans to be forgiven.

      Reply
34. Michelle September 9, 2018

    Thank you for all of this great info!! Question: I work for a non-for profit as my full time job but have considered a side job from home that would be for profit. Would that mess anything up for the PSLF plan?

    Thanks!!! 🙂

    Reply
    • Tim Marshall October 15, 2018

      Hi Michelle,

      Just make sure you continue working FULL TIME at your Non-Profit job, and you’ll still be able to fully qualify!

      Reply
35. Amber Williams September 6, 2018

    I have been working for the same non- profit for over 4 years and have made all of my payments on time with the Income Based Repayment Plan. I am just now finding out about the form needed to qualify for loan forgiveness, I intend on submitting it ASAP. Will I still qualify even though I didn’t fill out the form as soon as I began working for a non-profit? Or will they be able to go back, based on verification from my employer and count the 48 payments I already made?

    Reply
    • Tim Marshall November 26, 2018

      Hi Amber,

      You may be able to get certification for your previous payments. The way this is handled seems a little helter skelter, but I think if you can prove that you were following all the rules, and your HR department helps out, you should be able to get credit for your previous payments as well.

      Reply
36. Elyse July 13, 2018

    Hi Tim,

    This article is VERY helpful. Thank you for taking the time to explain it in such detail! For the on-time 120 monthly payments, is it 120 of the minimum required IBR monthly payments? Or is it any payment? For example, my IBR is roughly $120 a month. I’ve been paying $60 biweekly (so making 2 “payments” a month). Does each payment of $60 count as 1 payment towards the 120 threshold? Or does each “payment” have to be $120?

    Reply
    • Tim Marshall July 24, 2018

      Hi Elyse,

      It’s monthly. Even if you doubled up your monthly payments, and made 5 payments worth of the entire monthly required amount, you’d still only get credited for a single payment. There’s no way to fast-track this program. It’ll literally take 120 months of full, on-time payments to qualify for forgiveness.

      Reply
37. Patricia Bergen June 24, 2018

    My husband and I both work for a non-profit. We have a son who is starting college in the fall. Is it possible to start the process now for the federal loans that we qualified for through our FAFSA application and will be taking out to cover the portion of his tuition that we are responsible for? Is this a different process?

    Reply
    • Tim Marshall June 25, 2018

      Hi Patricia,

      I’m sorry, but I’m not an expert on the GETTING loans piece of the student loan puzzle yet – my specialty is figuring out how to deal with them once you’re already in debt. I would contact someone from the Department of Education to get details on your question about the lending process.

      Reply
      • Lexi June 28, 2018

        Hi Tim! I am graduating in December with my B.A. and wanted to immediately get started on being eligible for this forgiveness. I was wondering, would I have to work in a non profit for 10 years while making the on time-in full monthly payments under an income based repayment plan that total out to 120 payments or is a couple of years to 5 years with one non profit ok while still continuing to make those exact payments afterwards? Or what is the minimum.. I am curious because somewhere I read that 2 years in PeaceCorps would suffice and qualify you. What about in the case of being in a community org?

        Reply
        • Tim Marshall July 6, 2018

          Hi Lexi,

          Per the rules of the Public Service Loan Forgiveness Program (the official name of the Non-Profit Loan Forgiveness Program), you must fully satisfy the conditions of the program for each payments, so yes, you have to be working full-time for a qualifying non-profit, and enrolled in a qualifying Income-Based Repayment Plan, in order for each of your payments to count. That needs to happen 120 times, so it does take 10 years of working for a non-profit to qualify for forgiveness. There is a Peace Corps Student Loan Forgiveness Program too, but it doesn’t erase all your debt after just two years, and is way less powerful than PSLF.

          Reply
38. Nathan Wolters June 6, 2018

    Hi Tim,
    Thanks so much for the time and effort you put into replying to all these posts. Very helpful info! My wife graduated from college in 2011 and has been making monthly payments since then. She has worked a multiple non-profits over the years. Does it have to be the same non-profit or does any month in which she made a payment and was working full-time at a non-profit qualify towards the 120 months?

    Nathan

    Reply
    • Tim Marshall June 7, 2018

      Hi Nathan,

      Thank you for your kind words, they’ve much appreciated! The good news is that you don’t have to work for the same non-profit to qualify for PSLF. Any payment your wife made while enrolled in a qualifying repayment plan (one of the Income-Based Repayment Plans) while working full-time for a qualifying non-profit will count towards the 120 payment threshold.

      Reply
      • Lucy August 19, 2018

        This site is awesome! Thank you so much for keeping it real!!!

        Reply
39. Kimberly Smartt May 29, 2018

    Ive been on an income based repayment plan for I believe 4 years now. I just started working for a no profit healthcare company last year. Will I fall under tue 10 year forgiveness or will it be longer? My ibr payments are currently $0.

    Reply
    • Tim Marshall May 31, 2018

      Hi Kimberly,

      So keep in mind that the 10 year plan is really a 120 payment plan. Only payments made under an Income-Based Plan, and while working for a Non-Profit, count toward that 120 threshold, so if you just recently started at the non-profit, then only those payments from that point will count. Congratulations on a $0 payment though! It’s rare to qualify for that, and you’re definitely one of the lucky ones! Keep at it and after you make the 120 payments, your loan will be forgiven.

      Reply
40. courtney goldstein May 19, 2018

    Greetings,

    One of my clients received a 1099 Misc for this income in box 7. From what I understand it has to be taxed on state but not federal. Confused as to why the non profit issued client 1099 misc for this amt

    Reply
    • Tim Marshall May 31, 2018

      I would contact their HR department if I were you. I have no idea.

      Reply
41. Alexandra April 3, 2018

    Hi Tim,
    Thank you so much for this article! I am currently repaying two student loans. One is Sallie Mae , and the other is a Nelnet federal loan. From what I am understanding is , to quality , aside from working in a non for profit, I would have to reach 120 on time payments. Does this mean someone can work less than 10 years and qualify (if 120 payments are made)? Also if Sallie mae also counts as an acceptable loan ( as long as its income based repayment plan) and I’m making two payments per month, does this mean I can and will qualify sooner?

    Reply
    • Tim Marshall April 4, 2018

      Hi Alexandra,

      Yes, you’re reading that correctly. It means that you have to make 120 MONTHLY on-time payments, which means that no, you can’t work less than 10 years to qualify for the benefit. They set it up on purpose so that only monthly payments which are full and on-time count.

      And no, you can’t qualify sooner by paying towards two different loans, what happens is that each loan will qualify for forgiveness at the ten year mark, once those 120 payments against them have been made.

      Good questions, and sorry to be the bearer of bad news, but it sounds like you’re well on your way toward earning forgiveness! Hope this clears things up for you and good luck!

      Reply
42. Rita March 26, 2018

    I just quit my job. I worked for the federal government. If I only worked for half of the month, does that count as a qualifying month – even if the person doesn’t work for the WHOLE month?

    Reply
    • Tim Marshall March 28, 2018

      Hi Rita,

      No, that would not count. You need to work full-time for the entire month in order for the time to count toward forgiveness.

      Reply
43. Ashley February 12, 2018

    Uma ultimate medical academy is the school i so stupidly enrolled to, if give anything to go back and not of answers tha phone that day my first clue should of been the pushy so called advisors, i’ve been looking for work after graduating in 2013 and i haven’t had the first job with my degree they stopped helping me look after the first month i graduated and i owe 30,000 or medical management even sounds like a bs job title. I need help i am getting married this next month and although as of now i am on a 0 monthly payment plan because i have no income when i get married my loans come with me and we will be based on his income it isn’t fair to him to have to pay for a school that scammed me. surely there is a way for us to get our loans forgiven..?Even if I stay on income based agreement without his income I still have to pay the interest which is gonna be outragious.it’s not right they misled me I was young stupid didn’t read over everything which isn’t no one’s fault but my own but they sold me a pipe dream as well as hundreds of others you see the same complaint from student after student how are they still considered a fasfa accredited school it’s not right they over charge teach you nothing and yet it’s the student who looses.
    Reason of review: I owe for a worthless degree that i can’t even use to be able to repay school loans, I want my Loan Forgiven.They Lied mislead stole from me and ruined my life. They pressured me to rush the decision i was young niece and didn’t read through everything i thought the majority was going to be grants i never imagined it cost me 30,000 to waiste 2 years online on campus courses dont even cost that much. After they lined me up with a job as a cashier at a pharmacy temp position they didn’t contact me or return my calls when no called wanting help to find a position like the one I was promised the yes line me up with, that is until i started inquiring online of ways to get out of the loans here we are almost 5 or so years since my worthless graduation and now they want to attempt to find me a job y what little I did learn which wasnt enough to feel secure in any job much less a management position but that little they did present for me to learn is eaither out dated our no longer in my head, there’s gott to be somethi g that can be done anyone who would take the time to read through students complaints would see we al have the same problems they lied to us sold us a over priced fairy tale took advantage of us and ruined many of our lifes how is that not clause for forgiveness how is it ethical to hold us to pay I g back when we were scammed please help me
    If I was lied to to get me to enroll to school and now I’m in debt $30,000 they never help me find a job like they said they would and until I started inquiring online and on through the better Better Business Bureau I hadn’t heard from them in 5 years but now they are starting to call to try to help me find a job five years later which is a joke already don’t didn’t learn much in there now there’s no way that I could get a job with medical coding and stuff because that changes every year so I’m five years graduated and I have no job I have had no job and people laugh at me when I go apply for job Shirley there’s a way to get my loans forgiven

    Reply
    • Tim Marshall February 26, 2018

      Ashley,

      Check out the Borrower’s Defense Against Repayment Program; I think it’ll be your best bet at getting rid of this loan.

      Reply
44. Sam January 20, 2018

    Hi Tim,

    Great article with useful information. I am 8 years into my PSLF program and for the first time considering taking a job at a non 501c3 employer. It would be working with a national fraternal organization at their national headquarters. The organization is a 501c7 in higher ed schools all over the country. I attempted to call the customer service of the PSLF program to inquire as to whether this would fall under the “school based services” portion of the program, to which they could only say I would have to apply once I have the job to find out. This is worrisome and risky to me. Any thoughts or ideas if a job like the one I’m considering would be considered a “school based service” or if there’s someone I can talk to to get a definitive answer? Thanks so much.

    Reply
    • Tim Marshall January 30, 2018

      Hi Sam,

      My advice would be to reach out to the Student Loan Ombudsman Group and ask for their legal advice on the matter. This is a Govt backed group of attorney’s that offer legal advice on student loan-relayed topics. They should be able to give you the best possible legal guidance on whether or not you’ll be ok.

      Reply
45. Jessica Winetsky January 12, 2018

    Hi Tim,

    Sorry if this has already been asked but I tried skimming through the comments for it! I have been on an income driven repayment plan since graduating and starting to pay off my loans in 2013. I just started working for a non profit hospital and want to apply for the public loan forgiveness. Will the 120 payments begin from my time working at the nonprofit or will they honor all my previous payments of the past 5 years?

    Thanks!
    Jess

    Reply
    • Tim Marshall January 16, 2018

      Hi Jess,

      Unfortunately, yeah, it’s the bad scenario. Only your payments since starting to work full-time at the nonprofit will count. Previous payments won’t count since you didn’t have the right kind of job while making them.

      Reply
46. JAE January 4, 2018

    HI TIM

    CAN YOU WORK FULL TIME FOR A PROFIT ORG AND FULL TIME FOR A NON-PROFIT (THAT I OWN) AS WELL AND QUALIFY FOR THE FORGIVENESS PROGRAM? I UNDERSTAND FROM GOING THROUGH SOME OF YOUR QUESTIONS THAT I WOULD HAVE TO ACTUALLY BE AN EMPLOYEE OF THE NON-PROFIT BUT JUST WONDERING IF HAVING ANOTHER FULL TIME JOB WITH A FOR PROFIT COMPANY WOULD DISQUALIFY ME.

    Reply
    • Tim Marshall January 12, 2018

      Hi Jae,

      There aren’t rules about disqualifying for having another full-time job, so you should still be ok. The thing is you’ll have to prove you’re working FULL-TIME for the Nonprofit… which could be tricky. I think you’ll be good though. If I were you, I’d contact whoever services your loan to ask them for advice, because as crazy as it sounds, they’re the ones who have final say on whether or not you’ll be approved.

      Reply
47. Lee December 22, 2017

    Hi Tim, excellent article, thank you. I work as an independent contractor (1099) for a 501-c3 and have for some time. Would I qualify or does this need to be a w-2 type employee? Thank you!

    Reply
    • Lee December 22, 2017

      Also, can this program be started while still taking out loans? For example if I am finishing my master’s degree and will still receiving loans, that will be deferred?

      Reply
      • Tim Marshall January 12, 2018

        Yeah, so your new set of loans will just end up having a different timer than the old loans. Remember, the rule is you need to make 120 payments in full and on time. You could have 119 payments in full and on time toward your own loan, and take out a new one… your next payment for the old loan would qualify it for forgiveness, but you’d only be 1 payment qualified toward the 120 threshold on the new debt.

        Reply
    • Tim Marshall January 12, 2018

      Hi Lee,

      I think the definition of a 1099 employee is Self-Employed, so I do not think you will qualify, but I’m not entirely sure. I would check with your HR department, because they should be able to advise you on these matters, or with the Student Loan Ombudsman Group, which is a Federally-backed group of attorneys that offer legal advice related to student loan issues. Google their name for their contact info. They’re FREE, and backed by the Federal Government, so you can trust their advice!

      Reply
48. Ryan November 14, 2017

    Hi Tim,
    Could I receive loan forgiveness after 5 years if I worked at a 501(3)(c) and paid twice my monthly loan payment every month?

    Reply
    • Tim Marshall November 16, 2017

      Hi Ryan,

      Unfortunately, it doesn’t work that way. The rules of PSLF and Non-Profit Loan Forgiveness stipulate that only one payment per month will count toward the forgiveness benefit. I’m not entirely sure why they want to stretch it out that way, but that’s how it works.

      Reply
49. Claudio Ehinger November 10, 2017

    Question
    How long do I need to work for a non profit before my mortgage lender won’t hit me with the 1% payment for FHA?

    Reply
    • Tim Marshall November 13, 2017

      Hi Claudio,

      You should speak to your mortgage lender about that. I’m not sure how that stipulation works… never really looked into the mortgage side of things.

      Reply
50. irene yaymadjian October 18, 2017

    Hi Tim,
    I recently opened my own non-profit (501C3) community mental health center. I work over 40 hours a week running my center and providing therapy to patients. Do I qualify for loan forgiveness if I am the owner of the non-profit? Your feedback is greatly appreciated.

    Reply
    • Tim Marshall October 25, 2017

      Hi Irene,

      If you an an EMPLOYEE of the Non-Profit them I am sure you will qualify. I think you need to be an employee though, legally speaking, so you’re going to have to figure out how to swing that. I’d talk to your CPA or an Attorney to see what they think, and get advice on how to structure things so that you can use your work to qualify for PSLF. I am almost certain that you can make this work.

      Reply
51. Victoria July 26, 2017

    If I was already working at a nonprofit while I was recieving the loans and then continued to work there after graduation in a different position, does that factor into my ten years?

    Reply
    • Tim Marshall July 31, 2017

      Hi Victoria,

      Only payments made after your loans were taken out, and within an approved Federal Student Loan Repayment Plan (one of the Income-Based plans) will count toward your 10 years needed to receive forgiveness. Your time spent working at the Nonprofit BEFORE receiving the loans will definitely not count.

      Make sure you’re making payments under one of the Income-Based Plans too. That’s the biggest thing that catches people off guard. If you’re using one of the other NON-Income Based Repayment Plans, then your payments aren’t counting.

      Reply
52. Eastman Johnson April 20, 2017

    Hey Tim, I am curious if there are any possibilities to work for a non-profit abroad? What are the stipulations? Are the only non-profits that are eligible ones that are registered in the U.S. as a 501 (c)(3)?

    Reply
    • Tim Marshall April 28, 2017

      Hi Eastman,

      Good question, but only 501(c)(3) nonprofits registered in the U.S. will qualify for this program. It may be possible to work internationally for a portion of the organization, as long as it’s registered here in the U.S., and satisfies all the other eligibility conditions, but I’m not entirely sure. Try contacting the Student Loan Ombudsman Group and ask them. (This is a free call, as it’s a group of pro bono lawyers that answer legal questions about student loans and student loan debt). Please come back and let me know what you find out, as I’d like to know in case anyone asks this again in the future!

      Reply
53. Ryan Marcey April 17, 2017

    Is there an application yet?

    Reply
    • Tim Marshall April 28, 2017

      Sort of. There’s the Employment Certification Form, which you definitely do need to fill out.

      Reply
54. Justine March 9, 2017

    Hey Tim,

    So I have been making regular payments (standard) on my loans (2 kinds of federal) for about 40 payments. I have worked for a non-profit this whole time and just learned about this 120 payment forgiveness. If I switch now to an income driven plan and sign up for the public service loan forgiveness (which im pretty sure I qualify for). would that 120 payments reset or would my previous payments count towards it?

    Thanks 🙂

    Reply
    • Tim Marshall March 10, 2017

      Hi Justine,

      Sorry to break bad news to you, but the payments you make ONLY COUNT if you’re on an Income-Based Repayment plan at the time they’re made. You will not be credited for your previous 40 payments.

      Reply
      • Steve March 12, 2017

        Ugh, just recently became aware of the non-profit student loan forgiveness program and have been reading this helpful article and the thread of comments. I’ve been working for a non-profit for the past 12 years and auto-paying my loan servicer (Sallie Mae/Navient) on 30 year repayment plan (initially a 2 year interest-only with set a set-payment amount for remaining 28 years). If an income-based repayment plan was available at the time I was not aware of it and am only seeing this type of plan as an option after reading this article. My sense from your article and responses to the comments is that I would need to enroll now in an income-based repayment plan and make another 10 years of payments before I’m eligible — a $30,000 blunder!

        Reply
        • Tim Marshall April 10, 2017

          Hi Steve,

          Yes, you’ve got to be enrolled in an income-based repayment plan to get any credit for payments made toward forgiveness. Get switched asap so your payments will start counting!

          Reply
55. Lee February 3, 2017

    Do you know if VSAC loans are applicable? Vermont Student Assistance Corporation.

    Reply
    • Tim Marshall March 9, 2017

      No sure Lee. You’ll need to contact VSAC to find out.

      Reply
56. Kerline January 19, 2017

    Hello Tim,
    I’ve worked for a non profit for 8 almost 9 years (this year) and I recently started paying on my students loans. If I decided to switch over to “for profit” after my 10th year, will I still qualify for Public Service Loan Forgiveness (loans cancelled after 120 payments/10 years)?

    Reply
    • Tim Marshall January 20, 2017

      Hi Kerline,

      It’s not just 10 years of service that you need, it’s 10 years worth of PAYMENTS that you have to make. So, you have to make 120 monthly payments in-full, and on-time, WHILE working at the Non-Profit that qualifies under the eligibility conditions of the program. Sounds like you need to stay there a while longer…

      Reply
57. Jill January 14, 2017

    Hi Tim:

    So, if I have a Federal Direct Consolidation Loan I would more than likely NOT qualify for the PSLF Program? My husband and I consolidated our loans soon after we got married, we were only one or two years into our careers and it helped to lower the payment. We were never told and had no idea how much this would hurt us as it now seems that all these years later – we have been paying on the loan for 20+ years – we don’t qualify for any kind of loan forgiveness program. To make it sting even more…we are both public service professionals and have been our entire careers. He is an educator in the public school sector and I am a social worker who has always worked for non-profit agencies. We would always joke that we would still be paying on our student loans when it was time to send our children to college and NO JOKE,….we have a daughter who we will need to send off to college in just 2 short years!

    Reply
    • Tim Marshall January 19, 2017

      Hi Jill,

      The only way to be certain about this is to contact whoever services your loans and ask them about it. One thing to keep in mind… Navient just got nailed with three lawsuits initiated by the Federal Government’s Consumer Financial Protection Bureau, all for misleading students about their eligibility for benefits like PSLF. So, if Navient is your lender, and they tell you “No, you’re not eligible”, then it’s time to up the ante and go directly to a better source for information, like the Student Loan Ombudsman Group, or the Federal Student Aid Information Center Hotline.

      Oh, and for details on the Navient deal, please check out my page on the Navient Student Loan Forgiveness & Cancellation Program.

      Reply
58. Dom January 14, 2017

    Hi- quick question- I worked at a non profit hospital since 2007. I understand the student forgiveness loan will not go into effect until 10/2017. I have been paying on my student loans (besides when I have been in school). Can my loans be forgiven or will it have to be after 10/2017 that those 120 payments need to be made in order to qualify?

    Reply
    • Tim Marshall January 19, 2017

      Hi Dom,

      Your loans won’t be forgiven until 10/2017, if you have all 120 payments in full and on time. It’s about how many payments you made, not how long you’ve been paying.

      Reply
59. Gloria January 13, 2017

    Hello, I work for a Non Profit Hospital and would like information about student loan forgiveness.

    Reply
    • Tim Marshall January 19, 2017

      Read this page and you’ll have it.

      Reply
60. Christian January 11, 2017

    So, can the new administration just say, We’re not doing this anymore and people who have been in these programs are just out of luck?

    Reply
    • Tim Marshall January 19, 2017

      Kind of… President Trump can’t just overwrite any law he wants. He can cancel any and all programs that Obama initiated through Executive Orders, but Public Service Loan Forgiveness, Obama Student Loan Forgiveness, the PAYE and REPAYE Repayment Plans, etc., weren’t created based on Executive Orders, therefore, President Trump’s administration would need to get Congress’s help overturning these benefits packages.

      I still think that anyone with outstanding loans would be grandfathered through the process, and allowed to continue with their original plan (getting the benefits packages promised when they initially took out their loans), but anything is possible…

      Thing is, I have a feeling that President Trump’s Student Loan Forgiveness Program will be the biggest, best, most useful benefits package ever offered for student loan debt holders. I think it’ll only apply to Federally-funded loans, but I’m excited to see what he comes up with.

      Reply
61. P January 8, 2017

    Hi Tim, thanks for the helpful replies and post. Here’s my question: how much more than I currently make as a Federal employee should I make at a non-public service organization to justify putting a pause on my accrual of 120 qualifying payments for PSLF?

    My situation: already have 4 years of qualifying payments as Federal employee. Size of debt right now: roughly $170K. Currently on income-based repayment plan, and pay about $500/month. For example, would it be better to stay a Fed and make $83,000 (in order to continue making PSLF payments) or take a new job that makes $110,000? I could stay on the income-based repayment plan, but would have a pause on my 120 payments for however long I am out of the gov’t or not at a non-profit.

    In other words, if I ultimately intend to rely on the PSLF, should I stay and try to make all 120 payments in a big chunk? Or is there an income level that would be high enough to justify a 3-5 year gap before returning to a qualifying organization?

    Many thanks

    Reply
    • Tim Marshall March 9, 2017

      Hi P,

      Hard to give you an answer to that… you should consult with someone like a CPA or a Financial Planner if you’re trying to figure out the numbers side of things.

      There’s definitely an income level that would be high enough where you can just ignore PSLF altogether, but I’m not the best person to ask for financial advice, so I don’t want to steer you the wrong direction.

      Reply
62. Justin December 30, 2016

    Tim,
    Thanks for helping so many people out in sticky student loan situations. I soon will find myself completing a graduate Physician Assistant program in 10/2017 and am quite overwhelmed thinking about which option will be best for me in regards to repayment. I came into grad school with 11K in debt (undergrad) and will be racking up about 80K for the PA program and about 55K for living expenses for the past two years since I haven’t been able to work while in the program (so about 140-145K total…yikes). I’m thinking my standard repayment will be about 1600 per month x 10 years. I’m hoping to make about 90-100K starting salary. I have a few concerns. My first concern is that all my government student loans (10) are at different interest rates (3.8 – 6.8% I believe). When I begin to make payments, should I go about a certain way of paying them off such as paying the 6.8% loans first? I also wanted to ask about the PSLF program. If you make all 120 payments and fulfill all requirements while working for a non profit hospital per say, does the IRS still make you pay taxes on the forgiven amount at the end of the 120 payments. I was under the impression that if you worked for a non profit or perhaps a prison that the money forgiven would not be taxed by the IRS. Any advice would be greatly appreciated. I’m not opposed to paying the standard 120 payments (at 1600 per month) and being done with the loan, but a lot of hospitals are termed, “Non Profit” where I will likely be practicing in Virginia, so I was thinking if I could work for a non profit hospital and have a chunk of that loan forgiven then why not, however, I don’t know if it’s worth it if I will have to get on another payment plan with the IRS once a portion is forgiven after the 10 years of repayment. Thanks again, Justin

    PS I am married, wife is a Dental Hygienist and makes decent money and is DEBT FREE lol! She will likely be making 30-40K per year working 3-4 days per week. Just trying to figure out the best way for us to tackle on this debt with our yearly income of 120 – 140K.

    Reply
    • Tim Marshall January 5, 2017

      Hi Justin,

      Anyone planning to completely pay off their loans should definitely pay back the higher interest student loans first, as that’s the thing that makes the debt so expensive (compound interest).

      The thing is… in your situation, if you’re going to get forgiveness after 10 years worth of payments, then it doesn’t really matter how much of the loan you actually pay back by that point, so you’ll just want to make the minimum payment possible each month as additional interest costs which add to your total outsanding debt won’t actually impact you. (As long as those aren’t rolled into your monthly payments each year, increasing the payment amount whenever that’s done…).

      At the end of the PSLF situation you described, you shouldn’t have any costs to the IRS. The PSLF program lets you wipe out your debt without incurring tax penalties, so you’ll be all set.

      Just make sure that you do qualify for PSLF, and do anything you can to ensure that you’re going to get the benefit. The best way to tackle your debt is definitely going after PSLF, but you should also look into the many available Nursing Student Loan Forgiveness Programs, as some of them also apply not just to Nurses, but to PAs as well.

      I think you’re on the right path, just keep going, and good luck!

      Reply
63. VC December 18, 2016

    I work as an independent contractor for a non-profit 5013c. I do meet the requirements of being a full-time contractor and am making payments on my loan. I meet all of the requirements, but do not know if being an independent contractor vs employee makes a difference. I get paid through payroll, but my income is reported on a 1099 vs a W-2. Do I qualify for the PSLF? If so, do I need to do anything other than wait for the government to release forms to apply?

    Reply
    • Tim Marshall December 20, 2016

      Hi VC,

      Contact whoever services your loans to ask them if you qualify. At the end of the day, the people you send your payments to kind of have final say. If they say no, then you can start battling it out, but first ask them, and if they say yes, you’re all set. You won’t need to do anything to apply, but you will have to be enrolled on one of the eligible Repayment Plans (any of the Income-Based Plans will work). Again, ask your Loan Servicer what you need to do, as each servicer has a different process.

      Reply
64. Michelle November 18, 2016

    I just want to confirm that it’s absolutely true that consolidating will remove your chance for loan forgiveness. We consolidated my William D Ford loans into what we thought was a federal consolidation program in 2006. We were told on the phone that my loan would be kept separated out, but it was not. After 10 years as an RN at a non-profit hospital and 120 on time payments, I am eligible–except the Federal Student Aid program sent a letter saying they have ‘no record of any eligible federal loans’ when I applied. I called to discuss this with them because I have papers from the loan servicer saying they are FFELP loans and the original papers stating which portion was the direct William D Ford, but this is not good enough and not considered direct consolidation. The forgiveness denial letter actually recommends that if you have federal loans to consider “direct” consolidation of your other federal loans, but their website agrees with Tim that you might nix your eligibility. Apparently, the loan agency was allowed to offer a federally backed consolidated loan and it is technically a private loan. Thankfully, I did know in 2006, to hold out my Perkins loans from consolidation and those were forgiven in 2009., but in 2006 we didn’t know about the PSLF that started in 2007. If I had not consolidated I would have been paying 6.1% interest instead of 5.25%, but the loan would be gone. I’m looking at 14 more years of payments instead. Any advice on this would be appreciated.

    Reply
    • Tim Marshall December 16, 2016

      Hi Michelle,

      I’m so sorry to hear about your situation. I try as hard as I can to prevent people from consolidating their loans, but it’s difficult to get everyone on board with the process.

      Have you looked into consulting with an attorney? It may be possible to sue the company for misrepresenting their product/service, especially since it sounds like they literally lied to you. If you have documentation of that, then it should be easy to get it resolved (you won’t get forgiveness, but can sue the company to make them pay off the loan for you since it’s their fault your forgiveness benefits aren’t being delivered).

      I would also consider contacting the Student Loan Ombudsman Group to see what they think. They may be able to point you in the right direction, or even handle the legal battle for you, for free. This is a free group of Government-backed attorneys that deal with complicated student loan matters, so there’s really no risk in talking to them. They are NOT a for-profit entity, company, etc.

      Reply
      • VC December 18, 2016

        Tim, will you clarify Michelle’s comment and your response. She said:
        I just want to confirm that it’s absolutely true that consolidating will remove your chance for loan forgiveness.

        I am asking because in the article you said:
        What Loans Are Eligible for Non Profit Loan Forgiveness?
        The only loans that qualify for non-profit forgiveness are those issued under the William D. Ford Federal Direct Loan Program. This means that other types of loans, like FEEL Loans, Stafford Loans, Perkins Loans, Grad Plus Loans and any other type of Federally-funded student loan do not qualify for PSLF. However, if you have one or more of those loans, you might be able to consolidate them into a Direct Consolidation Loan, which would then be eligible for PSLF.

        So, is consolidation okay or no? Help me to understand better? Thanks for your help and article!

        Reply
        • Tim Marshall December 20, 2016

          Hi VC,

          Oh, that’s right… so IF you can consolidate your loans into a Direct Consolidation Loan, then that loan will be eligible for PSLF. If you do some other sort of consolidation loan… no dice.

          Now – even with that said, I would still call your Loan Servicer and ask them for THEIR INTERPRETATION of the rules. Why? Because when it comes time actually GET your loan forgiveness, you’re going to have to work through the loan servicer to make it happen. If you line your ducks up now, get their response in writing saying that you’re eligible and working toward your 120 payment threshold, then it should be easier to finalize everything when it’s time to cash out.

          Reply
65. Dana October 24, 2016

    Hi Tim –
    Thank you for providing this service! Wondering if you could answer two questions:
    1) I’m unsure if the type of loan I has qualifies as a “Direct Loan”. I consolidated my loans many years ago. Under my student loan servicer online account, it is considered a U.S. Dept of Education Consolidation Loan (two Direct Consolidation loans together) and I have a level payment plan. Do you know if this qualifies?

    2) Also, I was out on maternity leave earlier this year, and my loans were put on hold (I believe it was forebearance?) for 6 months. Would this effect my application?

    Thank you,
    Dana

    Reply
    • Tim Marshall November 15, 2016

      Hi Dana,

      You can get both of your questions answered by contacting whoever is servicing your loan (the people you send monthly payments to). Unfortunately, consolidation typically destroys your eligibility for forgiveness benefits, but you may get lucky.

      The forbearance shouldn’t impact your application. Your years of service don’t need to be continuous, but the payments you did not make while your loans were in forebearance likely won’t count toward the 120 total (so you’ll need to wait 10 years and 6 months before you qualify).

      Reply
66. Kevin October 12, 2016

    So if all of our loans have been consolidated with a loan consolidation company we no longer qualify?

    Reply
    • Tim Marshall November 17, 2016

      Hi Kevin,

      If you’ve consolidated your loans, then yes, you probably won’t qualify for Federal Forgiveness Benefits. If you consolidated Federal loans with private loans, then you will definitely not qualify.

      Reply
67. Kristyn September 15, 2016

    Hi Tim,
    I am currently working a part-time job for 30 hours a week. If I pick up an additional job as per diem or prn, would I meet the requirements of working 2 part-time jobs since I am definitely averaging 30 hours?

    Reply
    • Tim Marshall December 16, 2016

      Hi Kristyn,

      I think that would qualify you for the benefit, but before making this decision, I’d contact whoever services your loan to get their response. Also, if they say that it would work, make sure to get a copy of their answer IN WRITING. You’ll need that if someone tries to change the story later on…

      Reply
68. april September 12, 2016

    Hi Tim 🙂 I have worked for the same non-profit health system for 12 years now. I do work full time. In this time, I have made 12 payments toward my student loan… Forbearance was easier that keeping up with payments.. I have been accepted in to the public loan forgiveness program and should have details soon. Will any part of the 12 years I have already been employed with this non-profit organization count at all towards the 10 years? as well as the 12 payments? Also, my payments when they resume will be based upon my income as well as my husbands. My spouse is my second marriage and his name is not on my original loan. My ex- husbands is. My current husband also has a pre-nup. We do not share income at all. Whats mine is mine and vice versa. IS there a way that my payments could be based on my income alone? His income drives my payments up.. Thank you for whatever assistance you can offer me.

    Reply
    • Tim Marshall December 16, 2016

      Hi April,

      The only time that will count is whenever you made payments that were in-full and on-time. It sounds like you did 12 of those? If so, those 12 payments will count toward the 120 payment threshold.

      It’s no longer possible to base payments on your income alone. In the old days, you could file taxes separately, and that would qualify you to base payments on your personal income (excluding your spouse’s), but the Government got wise to this loophole and closed it.

      Reply
      • Ashley S. December 28, 2017

        Hi Tim,

        I am a physical therapist and work for a pediatric non-profit hospital. I have been in the program for about 7 years. I was married this year and planned to file my taxes separately, as I have been advised when I graduated and again on the phone with the counselor from Fedloan Servicing (with who I did a direct consolidation with after grad school). I have co -workers also that currently are filing separately and currently enrolled in the program. When did this rule change about filing separately versus joint?

        Reply
        • Tim Marshall January 12, 2018

          Hi Ashley,

          This rule changed way back in 2015 when new guidelines were put in place for PSLF. The conversation was going round that they were going to cap forgiveness amounts at just $57,000, but fortunately that was never enacted. The filing jointly rule was initiated, however, and I would advise you to speak with a CPA or some sort of Tax Attorney before violating the guideline, because it could lead to an Audit or worse. Your friends are probably getting away with it, for now, but there’s no telling how long that will last.

          Reply
69. Michelle Flynn September 5, 2016

    Hi Tim,

    Thanks for the great article! I have worked for a non-profit for 8 years and have been making my loan payments for 7 years. I just read that the type of consolidated federal loan that I have (FFEL) is not eligible for forgiveness. Do I have ANY recourse or am I really stuck with 1) trying to get the FFEL turned into a Direct loan and then 2) paying for another 10 years while working for a non-profit in order to have this debt forgiven? Thanks!

    Reply
    • Tim Marshall November 17, 2016

      Hi Michelle,

      Unfortunately, the answer is yes, FFEL loans don’t qualify for basically any forgiveness benefits. If you can turn it into a Direct Loan, that’ll be your best option.

      Reply
70. Julia June 14, 2016

    Hi Tim,
    I have worked full time for a non-profit for three years and am enrolled in an income-based repayment plan and plan on applying for student loan forgiveness after the 10 years. I’ve been offered a second part-time position at a public university as an adjunct professor and was offered some freelance work from a for-profit company. I plan on still staying at my full-time nonprofit job. If I bring in additional income, how will that affect my loan payments and loan forgiveness eligibility? I would love the extra income, but I’m not sure if it’ll be worth it if my monthly loan payment also increases or if I am disqualified for receiving income for a for-profit company.

    Reply
    • Tim Marshall June 24, 2016

      Hi Julia,

      Good question! If you start making more money with these other jobs, and you’re reporting that income on your IRS returns, then you’re monthly student loan payments will go up next year. IBR is determined annually, and the IRS is who calculates what you’ve been making, and what your payment should be.

      Be careful taking on additional work…

      Reply
71. Joshua June 2, 2016

    I’ve been out of school for 3 years now- didn’t graduate as I started a business with the woman that I love(and don’t want to marry so out bank accounts/taxes/etc will not be intertwined). We purchased a home last year and after many hoops I put my ICBR in forbearance for a year. That time expires in a month and I am fervently working to find employment in the public sector working with special needs populations.
    I am frustrated with myself for the choices I made late in life to go back to school and ‘better’ myself after a divorce. I had grand ideas and thought that I needed to get a college degree for mine and my sons sake. He’s now 13 and talking about college and I tell him and my 2 stepsons in no uncertain terms that they do not need a degree to achieve success and find happiness in life, financially or professionally.
    My stress levels are very high as in the back of my mind everyday is the ledger of my bank account. Surviving already in an economy where my business fluctuates on a daily and weekly basis as a self employed business person has taken its toll. Adding to my self employment taxes I am already scrimping for each month I am now facing the specter of the ICBR returning.
    I am grateful for your research as it reinvigorates me to find or begin a nonprofit that will meet my needs and allow me to be debt free by the time I’m 52.

    Reply
    • Tim Marshall June 28, 2016

      Hi Joshua,

      Thanks for the kind words and it sounds like you’ve got a good plan in place here! Definitely go after the Non-Profit Loan Forgiveness, or officially called, the Public Service Loan Forgiveness Program, as it offers the BEST benefits possible these days.

      If you haven’t already tried it, make sure to check out the websites http://www.idealist.org and http://www.indeed.com. In my experience, these are the two single-best resources for finding a job with a qualified 501(c)(3)

      Reply
      • Michelle October 4, 2019

        I, too, am suffocating in student loan debt…both federal and private. The private is killing me. I am 51 years old and will be paying until I die. I graduated with BSN in 2013, went back for NP in 2016, but after 1.5 years circumstances changed and couldn’t finish. It literally has taken years off my life. I have tried to renegotiate my monthly payment with private loan, but they keep saying I can afford it. Clearly, 90-120 days behind, I cannot.

        My questions are:
        1. I worked for non profit home health care company as a nurse for 15 months, and as Travel nurse for 3 months. I worked for non profits in between and now. How does that apply towards forgiveness? Does it have to be consecutive?
        2. What happens if I end up defaulting on the private? I owe $72k and they won’t help me.

        Thanks for all your help!

        Reply
        • Tim Marshall March 28, 2020

          Hi Michelle,

          Unfortunately, Private debt is the hardest type to get rid of. Check out my Guide on Private Student Loan Debt Relief for details on options (there isn’t much…).

          To your other questions:

          1. It doesn’t need to be consecutive. Each payment gets evaluated to see if it applies to the 120 payments requirement
          2. Defaulting on private loans will mean that your debt goes to collections and your credit gets hurt. It’s just like defaulting on Federal loans

          Hope this helps!

          Reply
72. Tim McFadden May 18, 2016

    Hi Tim,
    I currently work for a startup company that just applied for nonprofit status. I will be working for them during the application process while making my student loan payments. Can I apply for the loan forgiveness program now, or do I have to wait for the application process to be completed?
    Thanks,
    Tim

    Reply
    • Tim Marshall June 28, 2016

      Hi Tim,

      So, the program is kind of confusing, but you don’t actually apply to anything until you’re FULLY satisfied the eligibility conditions. Meaning… all you need to do right now is get on a qualifying Federal Student Loan Repayment Plan (one of the Income-Based Repayment Plans), keep making your monthly payments, and wait until you’ve hit the 120 threshold.

      If you want to verify that everything is set up properly and that your payments are qualifying for the benefit, contact whoever services your loan and ask them, as they’re the ones with all the power in this situation. At the end of the day, THEY have to agree that you’ve satisfied the conditions of the program, and allow you to utilize your forgiveness benefit.

      Reply
73. Appleby May 12, 2016

    My wife and I consolidated our loans together in 1997. Everywhere I’ve look for this kind of re-payment, our loans are not eligible because of that. I have worked for non-profits full time for the last 12 or so years. My wife has taught only part time at a college. Is there any way we could qualify?

    Thanks

    Reply
    • Tim Marshall July 14, 2016

      Hi Appleby,

      Unfortunately, that consolidation was a huge mistake. Consolidated loans basically lose eligibility for everything. I’m sorry to be the bearer of bad news, but you are probably out of luck for any of the major forgiveness benefits at this point.

      If your loans are Federal though, you could still qualify for total forgiveness after maybe 20 years worth of payments (240 full, on-time, payments). The problem is… I don’t think you could qualify for PSLF even if you BOTH satisfied the conditions, because the consolidation loan is in a different sort of arena.

      I would talk to whoever services your loan though, and see what they have to say. Another thing you could try is calling the Student Loan Relief Helpline, and asking their experts what they think. You can reach them at 1-888-694-8235

      Reply
74. Louis May 6, 2016

    Thank you for this article!

    I, along with 3 colleagues, just started a non-profit organization where we are all co-directors. I’ve been on the IBR for 2 years as well. As a director of a non-profit, would I be eligible for this? Thanks!

    Reply
    • Tim Marshall July 14, 2016

      Hi Louis,

      As long as you work at least 30 (or 40? Check the requirements in the Eligibility section) hours per week at that Non-Profit, you should be good to go. All the rules for qualifying at posted below in this article, so check them out and you can find out for sure.

      Or – try calling the Student Loan Relief Helpline. These guys know at least as much as I do about availability of Federal benefits programs, so you may want to talk to them and see if they can sort it out for you. You can reach them by calling 1-888-694-8235.

      Good luck!

      Reply
75. Lawrence April 28, 2016

    Great Article, I start a new non-profit company Monday. I am only one year into paying my loans back, and when I first started paying, I was late on one or two payments. Does that make me unqualified for the program? Or will my 120 payments start fresh next month, as long as I keep my payments on time once I start this new non-profit job? (I worked for a news station all of last year, so I know those payments, some late, wouldn’t have qualified anyway, Right?)

    Reply
    • Tim Marshall May 5, 2016

      Hi Lawrence,

      You should be fine. Make sure to keep your payments on time, make sure that each payment is for the “full” amount due, and make sure that you do not ever allow your loans to fall into default status. If your loans default, you’ll lose eligibility.

      Reply
76. John April 17, 2016

    Hi Tim, I found this article extremely helpful, so thank you!

    I have a few clarifying questions:

    1.) It sounds like if I worked at virtually ANY public university for 30 or more hours per week I would qualify for the PSLF – it wouldn’t matter if I was a tenured professor, or on custodial staff. Is this true?

    2.) Similarly, if I worked at a non-profit, it doesn’t matter what my position is, as long as I can show that I am an employee at 30+ hours per week (average)?

    3.) My wife is a clinical research co-ordinator at University of California, San Francisco. She has been making monthly payments of “$0” because, until this year, she was in and out of school and part-time jobs making very little money. Do monthly payments under the Pay as You Earn or Income Contingent plan count towards the 120 required for PSLF if they are “$0” per month? All our paperwork is up to date and that’s what her minimum required monthly payment is..

    Thank you!

    Reply
    • Tim Marshall April 25, 2016

      Hi John,

      1. Yes

      2. Yes

      3. Yes! Even if your payments are $0 (because of Income-Based Repayment Plans), they will still count toward her 10 years required for forgiveness (under PSLF).

      You guys are in a great situation!

      Reply
      • Justine October 25, 2016

        I thought you had to be employed for 30 hours a week in order for your payments to count. ?

        Reply
        • Tim Marshall November 15, 2016

          Hi Justine,

          You do. If I made it sounds like you don’t have to be, then that’s not accurate. Part of the eligibility guidelines are that you’re actively employed at a qualifying agency and working at least 30 hours per week.

          Reply
77. Ivonne March 29, 2016

    I work for a non-profit hospital and I have heard through other coworkers that this hospital does not count toward the loan forgiveness program because its located in “a desirable place to live”. Is there is number we can call to see if our hospital qualifies? Thank you!

    Reply
    • Tim Marshall April 13, 2016

      Hi Ivonne,

      There’s no phone number, but there’s a searchable online database, which you can find here. This lets you search for Health Professional Shortage Areas (HPSAs), meaning a geographic area that has been declared lacking in resources. If your facility is one an HPSA, you should qualify.

      Next step… contact whoever services your loan, and ask them. If they say no, get a second opinion with a local attorney.

      Reply
78. Tom March 26, 2016

    Do you happen to know whether 501c6 companies qualify for non-profit. There are educational components to the company but we also have a political action committee that lobbies Congress in Washington, D.C. From what I’ve seen that makes us ineligible.

    Reply
    • Tim Marshall April 15, 2016

      Hi Tom,

      I’m sorry, but I’m not sure. Try contacting your loan servicer to ask them for clarification of the details. They are legally obligated to tell you the truth about access to Federal forgiveness benefits.

      Reply
79. Gaity February 25, 2016

    I think the potential changes for the loan forgiveness program are ridiculous. As it currently stands it typically would take a graduate school student about 25 years to pay off their debt if they attended (like myself a private university). This proposed change wouldn’t really be a loan forgiveness at all if they require 300 or 25 years of payments to be made. I am hoping to transition to a non-profit place to work and take a pay cut to benefit from the stress of loans that I currently have. What help will that be if I’m responsible for paying my ridiculously high loans in their entirety if this change is to occur? What else can I do??

    Reply
    • Tim Marshall February 25, 2016

      Hi Gaity,

      It’s definitely a good idea to try and get enrolled in the Non-Profit Loan Forgiveness Program (technically the Public Service Loan Forgiveness Program). This is one of the best student loan forgiveness options currently available (if not THE best), so if you think you can get qualified for it, I’d definitely recommend pursuing this thing.

      Unfortunately, there really isn’t a whole lot else that you can do, but the good news is that this change is HIGHLY UNLIKELY to go into effect. No one has brought up the proposed changes since they were originally introduced, as it’s basically political suicide at this point to do so, so I wouldn’t worry about these changes going live any time soon (or any time at all, to be honest).

      Reply
80. Kelly February 21, 2016

    I worked as a Catholic School teacher for 8 years and the schools have nonprofit status, from 2007-2015. I made payments on my student loan over 44k during this time. The payments made during these years will count toward the 120 payments? I did a financial hardship forbearance almost every year for a few months.

    I’m back in school now and non working for a nonprofit. But if I count up payments made and then go back to working for a nonprofit until I get to 120 payments, I can potentially be done with the loan?

    Thanks! P.S. I’ve worked in nonprofits since 1998. Pay is low, but rewards are great!

    Reply
    • Tim Marshall April 25, 2016

      Hi Kelly,

      Yes, if the school was a nonprofit and you were employed full time by them (and satisfied all the eligibility conditions listed in this post), then your payments will count toward the required 120 payments.

      And yes, you can start and stop several times, change employers, and do other stuff in between without losing the previous eligible payments. It doesn’t really matter how you get there… as long as you make 120 eligible payments, you’ll earn loan forgiveness.

      Reply
81. Jane February 12, 2016

    Here is my question: I work for a 501© 3 as a physical therapist. I was working 40+ hours a week. Because it’s salaried and I was spending way more 40 hours a week and got pregnant, I switched to 30 hours a week which is really 40+ for me at this job wth all the unpaid phone calls and justification letters and what not, but my job considers 30 hours part time. At this rate I am not eligble now right? It’s done every year and not each month you work? Also if you are considered “call-in” or “per-diem” for a 501c 3 and work more than 30 hours, does that qualify? Is my best option to do an hour or two for another 501c3 because the program allows for 30 hours combined from two jobs? It Seems really unfair that because my job considers 30 hours part-time, that makes me ineligible when I could just do 15 hours for one place and 15 for another.

    Anyone saying people should think before they sign on the dotted line should go pee up a tree because you have no idea what you are talking about. We are lied to and hypnotized from age 5 that you need to go to college to be someone in this world and it’s drilled and drilled into our heads and highschool makes you do all these assignments for college and your 17 or 18 years old signing for a loan that has unrealistic, crazy high interest and we do it because we don’t feel we have a choice- some people are kicked out of their homes and ridiculed if they don’t go to college. Then a few years into it, even if you realize it’s a huge mistake, you have no choice but to finish because the moment you stop college, you have to start paying and how can you even pay for something that you didnt finish? We are lied to about what job salaries there will be and how it all works.

    If you want to get angry at someone, get angry at the propaganda that is everywhere telling every child they need to get good grades and go to college, otherwise they will be a loser for the rest of their life. If you want to get mad at someone, get mad at the banks and politicians that have made student loan debt THE ONLY KIND OF DEBT YOU CAN’T claim bankruptcy on and you have no consumer protections against like you do for other debt!

    Reply
    • Tim Marshall April 26, 2016

      Hi Jane,

      Yes – you will not qualify for the Non-Profit Student Loan Forgiveness Program unless you fully satisfy the eligibility conditions outlined in this article. You’re going to need to find a way to increase your hours so that you end up averaging at least 30 hours per week for the entire year.

      Reply
82. Amanda February 3, 2016

    Hi Tim,

    I’m a librarian and am about to get my hours cut from full time to 30 hours per week. If I’m reading the information in the PSLF correctly, you have to work an average of 30 hours per week OR what your employer considers full time. Why is it that I could have two jobs averaging out to 30 hours per week and qualify, but one job at 30 hours per week where full time is considered 37.5 would not qualify? Is there any way around this? Could I possibly get a job for a few days a month at a non-profit so I could technically qualify between my two jobs?

    Thanks!

    Reply
    • Tim Marshall April 26, 2016

      Hi Amanda,

      There’s no way around this. Requirements are requirements. It’s based on politicians, special interests groups, and the attorneys who write the laws. If you could get some work from another non-profit, then yes, you should be able to qualify between the two jobs.

      Reply
83. Lynnae January 15, 2016

    Where can I apply to see if I’m elgible? I’m really hoping this program works for me!

    Reply
    • Tim Marshall April 26, 2016

      Hi Lynnae,

      You should speak with your company’s HR rep, or contact whoever services your loan.

      Reply
84. keri redding December 9, 2015

    I have been paying on student loans from nursing school since 1999, so I cannot get those loans forgiven even if I have made 120 payments? I took a few breaks D/T being back in school. I have about $10,000 alo from LPN to RN school which I just’ finished in May of this year. So those won’t be forgiven until I make 120 payments on those? I also am about $35,00 in debt from a 4yr healthcare management degree. Would those be able to be forgiven? I work in a non-profit hospital asa RN nurse.

    Reply
    • Tim Marshall May 6, 2016

      Hi Keri,

      Yes, you need to make 120 payments under one of the income-based repayment plans before you will receive forgiveness, and forgiveness is only available on Federal student loan debt… not private loans.

      Reply
85. Stefani October 5, 2015

    I have a quick question. I applied three years ago and was accepted to be part of the program. I had asked at the time, if the previous payments I had made while working for my current non-profit organization would be counted towards the overall payment balance. They said because I was on the wrong payment plan that the previous payments would not count. In your article, however, it looks as though the rules may have changed regarding the repayment plan specifications. Is there any way for me to factor in the 4+ previous years of payments I made?

    Reply
    • Tim Marshall October 9, 2015

      Hi Stefani,

      Unfortunately, whoever services your loan really holds a lot of power here. Even if they’re wrong about their interpretation of the rules (and I think they are, because it shouldn’t matter what payment plan you were on), you’ve got to prove that to them, often in court.

      If you have a lawyer that you trust, I would suggest having them review your case and providing you with guidance on how best to proceed here. If you do not, and you cannot afford a good lawyer, then I would suggest contacting the Student Loan Ombudsman Group for assistance.

      This group provides free legal counsel for people struggling with Federal student loan debt, and I think they’d be able to point you the right direction.

      You can find their contact information here.

      Reply
86. Lynnelle October 2, 2015

    So a few months ago, I filled out the paperwork and sent in the information to see if I qualify for forgiveness since I work for a quasi-city agency–the local Convention & Visitors Bureau, but we aren’t a traditional non-profit. We are a not-for-profit agency.

    My application was denied because I needed to reconsolidate my loans into the Direct Consolidation Loan. However, I’m hesitant to do that because if they end not approving my forgiveness I don’t want to be stuck paying more per month than what I currently do.

    All I want to know is if the company I currently work for is eligible for Public Service Student Loan Forgiveness because I feel like it’s a gray area that I can’t ever get an answer for. I worked at a traditional non-profit for almost 6 years before moving into my current job, so if my current job is eligible for the forgiveness, I will almost be at the required 10 year period. If it ends up my employer is eligible, then I will happily consolidate my loans for the application process.

    Any help or insight you can give would be greatly appreciated. I have been trying to find an answer to this quandary for over a year. I’ve been on multiple websites, I’ve called different companies, and no one can seem to give me a straight answer.

    Thanks you!!!

    Reply
    • Tim Marshall October 3, 2015

      Hi Lynnelle,

      Unfortunately, it is a gray area when it comes to determining which companies actually satisfy the requirements of the PSLF program. Have you contacted whoever services your loan, because they are the people who will end up determining whether or not your employment actually counts.

      It’s possible that you’d be able to threaten them with legal action if they turned down your application (and you believed that they turned it down for an illegitimate reason), but you will definitely need to get them to approve your application, or SUE them to get your application approved.

      If I were you, I’d speak to them about this and ask them if your employment qualifies. If they can’t or won’t give you a clear answer, then I would consult with an attorney with experience in this space (or perhaps even in general contract law) to find out for sure.

      I wish I could give you a simple “Yes” or “No”, but this is a complicated process with a lot of potential caveats.

      Reply
87. Ashley October 1, 2015

    Hi Tim,

    As a fairly recent grad (May 2014) who has only worked at a nonprofit since graduating and beginning repayment, this information is extremely helpful. Thank you for your research and putting in the time to help us all understand the process of student loans!

    A question that I didn’t see on the comments thus far–I am thinking of moving abroad for a year or two, which would mean I no longer technically work at a nonprofit. Does my time of working at a nonprofit need to be consecutive? Or would my two years at a nonprofit in the U.S., then around two years off while abroad, and then 8 years back at a nonprofit in the U.S. count towards the 10 years needed to enter the PSLF program?

    Thanks a ton!

    Reply
    • Tim Marshall October 3, 2015

      Hi Ashley,

      For PSLF, no, you don’t need your nonprofit time to be consecutive. You should feel free to take off, enjoy your time abroad, and then return to finish up your eligible public service experience.

      BTW, I myself took some time off to travel abroad about a year and a half after graduation, and I’d say it was one of the best decisions of my entire life!

      Have a great time wherever you’re going!

      Reply
      • Laura May 25, 2016

        Hi Tim,
        I am freaking out new grad. Trying to figure out this loan repayment stuff is so hard and your website is so helpful!
        What happens if you are eligible for the PSLF and then lets say get pregnant and want to take extra time off? what happens during the time off? how much do you have to pay? and if you pay, its not going into the PSLF because you don’t qualify anymore (since you are not full time), so then have you just added 2 years to your 10 year commitment?

        Reply
        • Tim Marshall June 28, 2016

          Hi Laura,

          Thanks for the positive comments!

          While you aren’t working, your payments will still have to be made, but they will not qualify for PSLF since you’re not fulfilling the qualifying employment role. However, you will still be enrolled in one of the Income-Based Repayment Plans, which means your payments could be quite low (or perhaps even $0 if you have literally no income).

          Here’s the trick though – each year your income is reevaluated and payments are set based on the previous years’s IRS tax filings. You don’t get to change your payments every time something changes with your income (like right after leaving a job, getting a new job, etc.)… so… you’ll need to be careful/strategic with your timing, or you could end up stopping work, but being stuck with a big payment anyway.

          And yes, those payments you make which don’t qualify for PSLF won’t count toward your 120 payment requirement, but as soon as you satisfy the eligibility conditions again, your payments will start counting again. If you take 2 years off, then it’s going to take 12 years to qualify for loan forgiveness.

          If you want to get a CERTAIN answer on any questions like these, make sure to contact whoever services your loan (the people you send monthly payments to). THEY are the ones who have final say on how all this stuff works.

          Good luck!

          Reply
88. Carrie B. September 9, 2015

    Thanks for explaining this! I think I might qualify for this debt forgiveness as I worked for one non-profit from May 2006-Dec 2014. I’m back with another non-profit as of June. I’ve never been late on payments, always paid in full. I only have $2600 left on my loan, so I think I’ll only have a few hundred left by the time I’m fully eligible, since I have that gap of not working in non-profit from January-June of this year. Maybe eligible by April 2018? I’m thinking I should call my loaners and ask for income based payments to delay it out and try to take a little more advantage of it! I do think my loan is a Stafford loan though, so it looks like I will need to change that, right? Thanks!

    Reply
    • Tim Marshall July 15, 2016

      Hi Carrie,

      Here’s the problem with your math – if you weren’t on one of the Income-Based Student Loan Repayment Plans during those time periods, then none of that time spent working at the Non-Profit will count. To find out if yours counts, contact whoever services your loan and ask them. Or, because they don’t always make it easy to sort out (and sometimes try to lie their way out of steering you in the direction toward loan forgiveness, which leads to them having to write off your debt), you may want to try calling one of the private companies who offer refinancing and consolidation services. Try calling the Student Loan Relief Helpline and asking them for advice. You can reach them at 1-888-694-8235 and they should be able to tell you whether or not your previous time spent at the Non-Profit qualifies for the benefit (officially, the benefit is called the “Public Service Loan Forgiveness Program“, so ask them if you qualify for that).

      Reply
89. Julie August 26, 2015

    Hi Tim,
    I recently left my non profit job after 11 years, so I have 8 years in toward this forgiveness plan. I recently accepted a position with the Reading Corp which pays a small monthly stipend in addition to an educational award. Since my income will be greatly reduced, would it be better to put my loans in forbearance, or Income based? There is so much information out there, this blog is the best one as far as information goes and I just hope you can help shed some light on this for me. I hope all this makes sense.

    Thank you!!

    Reply
    • Tim Marshall August 27, 2015

      Hi Julie,

      I would be cautious about relying on forbearance because all that does is delay the inevitable. Your best bet is going to be getting onto an income-based repayment plan so that you can dramatically cut down on your monthly payments.

      Good luck, and thank you so much for the kind words!

      Reply
90. GIGI August 18, 2015

    Tim,
    I am all new to this process, i have read everything thanks so much for putting this altogether! I might be getting ready to join the nonprofit world, do you need to stay at one non profit forever?

    also where would be the best place to start consolidating your loans and still qualify for everything?

    i feel like one wrong move and i would be looking at repaying it all myself and then some! I saw earlier someone is 67! and still paying on loans! thats insane!

    I like to have a plan and want to make the best choices i can for my future…
    thanks so much!

    Reply
    • Tim Marshall August 27, 2015

      Hi GIGI,

      On Non-Profit Forgiveness… no, you don’t need to stay at one non-profit throughout the course of the forgiveness period. You can definitely move around from place to place.

      You’ll need to be extremely careful about consolidating, because getting a Direct Consolidation Loan can sometimes mean sacrificing forgiveness benefits that you would otherwise have been eligible for – the rules are tricky and they depend on the specific types of loans that you’ve got. For example, you wouldn’t want to consolidate a Perkins Loans, because then it wouldn’t be eligible for Perkins Loan Forgiveness after you’ve combined it with non-Perkins loans.

      It’s true – one wrong move and you will screw up your financial future forever. You need to be extremely careful about how you proceed here. My advice – don’t consolidate unless you absolutely have to and your loans are all of the same type. NEVER consolidate Federal loans with Private loans, start working at a non-profit and get onto the PSLF program as soon as possible.

      Good luck!

      Reply
91. steve August 18, 2015

    Hi,
    Original debt 57,000
    balance now 47,000
    6.8% interest rate. We pay approx $650 per month and wife has been in non profit for 3 years. Should be paid off in about 7 years at current rate.

    If we do a consolidation loan so all loans qualify for the program and then extend the loan to 30 years payments would be around $250 per month. In this scenario can we reset the clock to 10 years, make the payment for those 10 years and have the rest forgiven or would we be on hook still for the full 30 years ?

    Thanks much –
    Steve

    Reply
    • Tim Marshall August 27, 2015

      Hi Steve,

      Be careful of consolidation, because it’s not a silver bullet. Sometimes, consolidation reduces your access to benefits, and could end up costing you far more than it saves.

      I’m not sure I understand what you’re trying to do. Why not just pay out the $650 per month for 7 years and be done with it? If you drop payments to $250 per month, but get on the 30 year plan, you’re going to start racking up interest and end up owing more over the course of the loan.

      If you do qualify for PSLF after 10 years (make absolutely certain that you do, because this could be a huge mistake if you don’t actually satisfy the eligibility conditions), then don’t forget that you’ll still end up having to pay taxes on whatever amount of debt gets forgiven. You’ll need to factor that into determining which method ends up being the cheapest.

      Reply
92. lj August 7, 2015

    Hello,

    two quick questiosn for you:

    1) I work for a non profit on a full time, but seasonal basis, 6 mo/yr. does this mean that I would be elilgible for forgiveness after 20 years instead? (20 years x 1/2 year = 10 years)

    2) If I stop my service at the non profit after a period of time shorter than 10 years, am I eligible for commensurate, partial forgiveness? Stated another way, if a person works full time at a non profit for 9 years then stops, can they get 90% of the loans forgiven or would they need to complete the 10th year to realize any of this benefit?

    Thanks!

    Reply
    • Tim Marshall July 15, 2016

      Hi Ij

      1) You will not be eligible for the Public Service Loan Forgiveness Program benefit (officially name of the Non-Profit Loan Forgiveness Program) if you are only working half the year. This benefit requires full-time, year-round employment in a qualifying position.

      2) There is no partial forgiveness at this point in time. It’s an all-or-nothing approach. There have been bills circulated in Congress to try and make forgiveness and other financial benefits partial, but there’s a slim chance of those passing any time soon.

      Reply
93. Joe July 2, 2015

    Can I start my own non-profit and make payments based on what I pay myself?

    Reply
    • Tim Marshall September 8, 2015

      Hi Joe,

      That’s a great question. I would speak with an attorney before attempting to do anything like this though, as I’m sure there’s some sort of process you’ll need to go through before it could get approved.

      Perhaps your friend or wife or relative could start a non-profit though? That might be a little easier to get through the system. Speak with a lawyer and you may be able to come up with something interesting.

      If you do – please come back and let me know so I can offer that same advice to others in your situation!

      Reply
94. Whatever June 30, 2015

    Wow, you mean to tell me I can have my student loan completely forgive and all I have to do is live in poverty for a decade?! That sounds like the biggest bunch of bull shit ive ever fuckin heard.

    Reply
    • Tim Marshall September 8, 2015

      You should have thought a little harder about the implications of borrowing so much money before signing the dotted line.

      Federal forgiveness programs aren’t being created to wipe out student loan debt for the sake of getting rid of it; they’re being created to help people who couldn’t afford to fend for themselves otherwise get out of crushing, unbearable financial situations.

      Reply
95. Gianny Melissa June 20, 2015

    How can I apply for this loan forgiveness program?

    Reply
    • Tim Marshall June 22, 2015

      Did you read the section called “How Do I Actually Apply For Loan Forgiveness?”

      You can’t apply for it yet. No one is even eligible to take advantage of it until October 1st, 2017.

      Reply
      • Erica March 31, 2016

        You can fill out the Employment Certification form (you and your employer have to do this) which sets up the Federal government to enroll you (I think) and allows them verify your employment. It’s here: https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf

        Reply
        • Tim Marshall April 13, 2016

          Thanks for chiming in Erica!

          Reply
96. Kat June 18, 2015

    Hi Tim! If all other requirements are satisfied for forgiveness, are nonprofit founders just as eligible as other employees? Thanks for your help.

    Reply
    • Tim Marshall June 22, 2015

      Hi Kat,

      Yes! As long as you are an actual employee of the organization, it doesn’t matter if you’re in charge or just the mail-delivery person.

      Reply
97. Nell Kriesberg June 17, 2015

    Hi Tim,

    I borrowed a total of $30,000 between 1990 and 1991. Over the years, I have paid back $54,000 but it has all gone to interest because of how the loan was written, periods of forbearance due to financial hardship and the high interest on the original set of loans. The figure that I now owe is $83,000. I am now in my 17th year of teaching as an adjunct at North Carolina State University. I signed on to the public school teaching loan forgiveness program in 2007 but could not manage 120 consecutive payments due to needing to put the loan into forbearance a number of times due to low pay and helping elderly parents. I am now 67and plan to retire at 70. The bank now servicing this loan is using the 15% of AGI and total amount owed to give me an IBR much higher than I can afford and they will not negotiate a lower amount that I can pay. Is there anything being done for the many people in my situation? Thanks so much, Nell

    Reply
    • Tim Marshall June 22, 2015

      Hi Nell,

      Is your credit score ruined because of missed payments and such? If not, then I would look into consolidation opportunities. It sounds like the bank you’re working with isn’t going to budge.

      Alternatively, you might want to contact the Student Loan Ombudsman Group to ask if the bank is calculating your income in an illegal manner. You can reach them here.

      Reply
      • Erica March 31, 2016

        also just FYI the payments don’t need to be consecutive. There just needs to be 120 of them.

        Reply
98. anthony June 3, 2015

    I owed $23.000 loan from sallie maewhen i was in my collage since 2000. I have never paid anything back ever since and left the country in 2005. I came back to US now and recently i have recieved new statement one of the collection agency that bought the account( west Asset management). Now with the interests it reached up to $38.000. I have hired credit rebuilt firms and erased everything from my credit report. However every year department of ED. holding my tax returns but i dont see that money that i owe ever goes down.
    What do you recomend me to do? If i have to go for sattelement would they delete the interest charges and how much i should say ok to sattle? Would they consider payment plans by $100 a month? Or since nothing on my credit report should i let it go do nothing and would that be problem to me in the future?

    Reply
    • Tim Marshall June 16, 2015

      Hi Anthony,

      The money you owe isn’t going down because you’re not making payments on it, so it keeps racking up interest. Your debt will probably even grow further over time, since you are going to be accumulating more interest each year than your tax returns could cover.

      They’re not going to delete interest charges, but they’ll probably offer you some sort of settlement that’s significantly lower than the total you owe… the amount cut down is different for everyone so I can’t give you a good idea of what that might be in your case.

      I’m not sure what I’d do if I were you. It sounds like you may be able to just ignore them (and let them keep taking your tax refunds), but eventually I would think they’re going to hit your credit report again.

      You could try offering $100 a month payment plan, but that’s a really low amount and probably wouldn’t even cover your interest payments either, especially since you’ve let the loan sit in default for such a long time.

      At some point in time, you will have to address this. The sooner you take care of it, the better.

      Reply
99. Becky May 18, 2015

    I have worked for a nonprofit company for two years and then switched to another nonprofit company and have been working here for almost three years. Assuming both employers will qualify for loan forgiveness I should have 5 years of payments toward the 10 years. I am now pregnant and am not sure if I will be able to return to work. If I do not return to work but continue to make payments will I qualify for loan forgiveness once I hit 120 months of payments or would I have to return to work at a nonprofit company for at least 5 more years to qualify?

    Reply
    • Tim Marshall May 22, 2015

      Hi Becky,

      With the Public Service Loan Forgiveness Program (what you’re using to get forgiveness after 10 years of payments for working at a Non-Profit), only payments made WHILE satisfying the eligibility conditions will count towards your 120 threshold.

      So the answer is yes, you will have to return to work at a non-profit for 5 more years to qualify for forgiveness. Sorry to the bearer of bad news, but this is how the program works.

      Reply
      • eric June 18, 2015

        she should lower her payment while not working to zero (if she’ll have no income) and then do income based payments for the next five years, correct? so she’s getting more forgiven and paying less in the long run? just trying to get a grasp on all of this.. thanks Tim

        Reply
        • Tim Marshall June 22, 2015

          Yes, that would be my advice. Good luck!

          Reply
100. Melody April 16, 2015

     what do you think about the company “edu support center” to help lower payments by income based repayment? i am under the impression the company charges a monthly service fee for filing with the department of education for loan forgiveness. can you please offer any clarity on this? thanks in advance

     Reply
     • Tim Marshall May 7, 2015

       Hi Melody,

       DO NOT FALL FOR THEIR TRICKS! NO COMPANY, PERIOD, can reduce your Federal student loan payments any more than you could yourself.

       NO COMPANY, PERIOD, can get you access to special Federal student loan repayment deals, offers, or incentives that you wouldn’t be able to access on your own.

       Do not send a single cent to anyone who claims that they can help you out with your Federal student loan debt. Anything they can do, YOU can do on your own.

       Reply
101. kelly March 16, 2015

     Why can’t you people pay for your education like the rest of us? You should have spent your money more wisely when going to school. I have no compassion for people who go to school with no research and get a a degree that is worthless and then expect to stiff the bank and not pay.

     Reply
     • Tim Marshall March 20, 2015

       Hi Kelly,

       I share your concern for this topic, especially when people have racked up over $100,000 in debt to get an undergraduate degree, and especially when it’s in some non-science topic, but there are all sorts of marketing and advertising tricks out there convincing people that this is the only way they can succeed in live.

       Unfortunately, a lot of money gets spent on funding the propaganda line that college is the only way to fulfill the American Dream, and that getting a degree is worth it, no matter what the cost.

       My rule of thumb is never borrow more than what you expect to make during your first year after graduation. If everyone followed that simple guideline, we wouldn’t be in this mess.

       But everyone believes that they’re the exception to the rule, and that they’re the next millionaire in the making. It’s human nature. And it’ll never change.

       Reply
     • angie April 22, 2016

       As a kid I feel like I was tooken advantage of I really had no idea what I was doin. I thank they knew that as they had me sign papers for loans. Now I know college was a big wast of time and right out of high school I racked up $20,000 in debt. My family was to no help. It isn’t that i don’t thank I should pay for it just that I feel I was lied to and I will never be able to pay back the interest on it now being out of school and having children. I will never tell my daughter she has to go to college to be great.

       Reply
       • Maddi July 27, 2016

         I feel you. This is so accurate.

         Reply
       • Regina Wiggins August 2, 2017

         I am experiencing a similar situation; if I knew what I know now. I would of payed off the $20.000 dollar student loans as soon as possible. I have never defaulted on my loans and I am currently in a Income Base Program. However my student loans has tripled in interest. I am still trying to figure it out. I would like to have forgiveness for my interest that has accumulated over in time and just pay off the $20.000 dollars. I am currently working on getting a Non-profit job for forgiveness. If would be a miracle if the student loans interest was forgiven too!

         Reply
         • Tim Marshall August 3, 2017

           Hi Regina,

           What you’re asking for isn’t really the way that it works. Did you read through the entire article? The way to receive forgiveness is to stay on your Income-Based Repayment Program, keep making those monthly payments, then get forgiveness at the 10 year mark. If you qualify for PSLF, the interest that accumulated on your loans will be forgiven, along with the loan balance.

           Reply
     • Maddi July 27, 2016

       Kelly, You obviously were not from a family that not only encouraged you to go to college, but would settle for nothing less than the best school. It wasnt encouraged in my house. Banishment from my childhood home was my other option. They told me they were paying for it, when really they were taking out loans in my name. I was 18. I didnt understand the details. I was focused on school and trying to keep the grades. “You people”….like we’re some sort of terrible group making you miserable. Many of us are victims. Hell, if financial child abuse was a thing, my case would fit it. I pay my payments. I have a science based degree. I live in poverty. I’m just trying to take advantage of what I can to have a life someday. I dont think about kids, a house, frduge full of food….Those are dreams that were lost when my parents decided my future for me. You are ignorant and have no compassion for others.

       Reply
       • Meg May 2, 2017

         Something very similar happened to me. I had no idea there were other people out there.

         Reply
     • Gwen June 4, 2017

       Perhaps you don’t understand everyone’s situation. I borrowed the minimum amount necessary to fund only a partial amount of my education- what I wasn’t able to cover out of pocket at the time. I have been diligently paying on my $45,000 student loan for the last SEVENTEEN years. At this point I have paid more than double the original amount borrowed for school (due to the interest), and still have another 10+years of payments to go. I have worked for non-profit organizations the entire time, and do not feel that participating in this program would be “stiffing the bank” in any way.

       Reply
       • Tim Marshall June 16, 2017

         Gwen – many people have no idea what they’re talking about when it comes to these programs – they think anyone who receives any form of Government-backed financial assistance is a leech on society, but guess what? Tons of the people with that opinion are receiving all sorts of benefits of their own!

         Don’t worry about the haters. Join the rest of us in promoting the Petition to Protect the Public Service Loan Forgiveness Program by signing it here:

         https://www.change.org/p/defend-federal-student-loan-forgiveness-benefits-pslf

         Reply
102. Andy K August 12, 2014

     I wish the program would qualify immediately for those of us who have been out of school for a while. I’ve been making my regular payments since 2000, so am well over 10 years into it. I agree that 10 years of repayment is fair (owning your college debt makes you appreciate your education a bit more, I think), but I think once you hit the 10 year mark, if this program is in existence, then it should be available right away. By 2017, I will have 17 years of payments made and , frankly not much loan debt left. I am glad those who came after me will be able to take advantage of this sooner then me, but it seems like since I graduated sooner, I am getting shafted out of my share of repayment under this program, which is disappointing. Still, any forgiveness of student loans is a good thing. I’ll take advantage of whatever is available as soon as it is available and be thankful for it….

     Reply
     • Tim Marshall August 14, 2014

       Hi Andy,

       Everyone in your situation wants the same thing, but immediate forgiveness on all outstanding student loan debt that has had 10 years worth of payments put toward it would likely tank the entire economy, and would certainly ruin some of our biggest banks.

       Remember – there’s more student loan debt than credit card debt now, and the massive banks servicing these loans are not likely to be very happy with losing their golden goose.

       Unfortunately, the corporations have essentially hijacked the political process, and hold far more sway over Congress and the President than do the American people.

       I’m with you though – it’s not necessarily fair that you’ve had to pay back such a large percentage of your loan, and the kids graduating now are going to get to finagle their way out of their debt, but I don’t see this situation changing any time soon – there’s not enough pressure on the politicians to make it happen.

       Thanks for stopping by, and good luck! I’ll keep my fingers crossed for you!

       Reply
103. Joe June 9, 2014

     Tim,

     If I’m enrolled in the program right now (I’m two years in), making my IBR monthly, what does the 2015 budget mean for me? I have over $57,00 in loan and am the sole provider for a family of five, so we don’t pay much. Will there be a “grandfathering” in, or will my family be screwed by this?

     Reply
     • Tim Marshall June 10, 2014

       Hi Joe,

       I can’t give you a solid answer on this quite yet, because the budget is still up for consideration.

       I will update this page as soon as everything gets resolved.

       Reply