1. #1
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    Student Loan Forgiveness

    Got tons still in student loans.. Check this out :http://studentaid.ed.gov/students/at...essMarch18.pdf

    What: Through the College Cost Reduction and Access Act of 2007, Congress created the Loan Forgiveness for Public Service Employees Program. The new program provides for the cancellation of the remaining balance due on eligible federal student loans after the borrower has made 120 monthly payments on those loans under certain repayment plans while employed in certain public service fields.

    Effective Dates: Borrowers must have made 120 monthly payments after October 1, 2007 in the William D. Ford Federal Direct Loan (Direct Loan) Program. Therefore, the first cancellations of loan balances will not be granted until October 2017 at the earliest.

    Eligible Loans: Any non-defaulted loan made under the Direct Loan Program. See below for information on how borrowers of loans made under other federal student loan programs may qualify. The Direct Loan Program includes the following types of loans –
    • Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
    • Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
    • Federal Direct PLUS Loans (Direct PLUS Loans) – for parents and graduate/professional students
    • Federal Direct Consolidation Loans (Direct Consolidation Loans)

    Eligibility of Other Federal Loans: Although loan cancellation is only available for loans made and repaid under the Direct Loan Program, borrowers with loans made under other federal student loan programs may be eligible if they consolidate those loans into the Direct Loan Program. However, only payments made on the Direct Consolidation Loan will count toward the required 120 monthly payments. Loans that are eligible for consolidation into the Direct Loan Program include –
    • Federal Family Education Loan (FFEL) Program, which includes:
    • FFEL Subsidized Stafford Loans
    • FFEL Unsubsidized Stafford Loans
    • FFEL PLUS Loans
    • FFEL Consolidation Loans
    • Federal Perkins Loans
    • Certain Health Professions and Nursing Loans

    NOTE: Borrowers may have to meet additional eligibility requirements to consolidate these loans into a Direct Consolidation Loan. If you are unsure about what kind of loans you have consult the National Student Loan Data System at http://nslds.ed.gov.

    Eligibility Requirements – Repayment Plans: To be eligible to have remaining balances cancelled, the borrower must not be in default on the eligible loans and must –
    • Have made 120 monthly payments on the eligible loan(s) beginning after October 1, 2007. Earlier payments do not count toward meeting this requirement. Payments must have been made under any one or a combination of the following Direct Loan Program repayment plans –
    o Standard Repayment Plan with a 10-year repayment period.
    o Income Contingent Repayment (ICR) Plan – not available to parent Direct PLUS loan borrowers.
    o Income Based Repayment (IBR) Plan – not available to parent Direct PLUS loan borrowers.
    o Other Direct Loan repayment plans, but only payments that are at least equal to the amount that would be required under the 10-year Standard Repayment Plan may be counted toward the required 120 payments.
    Loan Forgiveness for Public Service Employees
    Winter 2008
    Page 2 of 2

    For more information about the repayment plans available in the Direct Loan program, please visit: www.ed.gov/DirectLoan on the web.

    Eligibility Requirements – Employment in a Public Service Job: To be eligible to have remaining balances cancelled, the borrower must –
    • Have been employed in a public service job during the period in which the borrower made each of the 120 monthly payments and;
    • Must be employed in a public service job at the time of loan forgiveness.
    NOTE: In the case of a parent PLUS loan, the qualifying public service employee is the parent, not the student on whose behalf the loan was received.
    Public Service Jobs: Eligible public service jobs are full-time jobs in the following fields:
    • Emergency management
    • Government
    • Military service
    • Public safety
    • Law enforcement
    • Public health
    • Public education (including early childhood education)
    • Social work in a public child or family service agency
    • Public child care
    • Public service for individuals with disabilities
    • Public interest law services (including prosecution or public defense or legal advocacy in low income communities at a nonprofit organization)
    • Public service for the elderly
    • Public library sciences
    • School-based library sciences and other school-based services
    • Certain tax-exempt organizations
    • Faculty teaching in high-needs areas, as determined by the Secretary
    • Full-time faculty member at a Tribal College or University

    Additional Guidance and Implementing Regulations: The Department of Education will publish regulations to implement the Loan Forgiveness for Public Service Employees Program after providing an opportunity for public comment in accordance with legal requirements. Those regulations will be issued by November 2008.

    CAUTION: In general, only borrowers who are making reduced monthly payments through the Direct Loan income-contingent or income-based repayment plans will have a remaining balance after making 120 payments on a loan. In other words, only borrowers with a high debt-to-income ratio or consistently very low income will qualify for loan forgiveness under the Loan Forgiveness for Public Service Employees Program.

    Disclaimer: This fact sheet provides a preliminary summary of the Loan Forgiveness for Public Service Employees Program based on the College Cost Reduction and Access Act of 2007. The information in this document is subject to change and is not binding on the Department.

  2. #2
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    Last edited by LawDog99; 09-09-2011 at 12:32 AM.

  3. #3
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    Yeah, I'm going to guess that you have to make close to the poverty/low income level to be able to qualify. BUT..... some of those jobs MIGHT not pay that much. I haven't actually calculated out what my total might be but:

    1 year of College= $20,196
    4 years in college= $80,784


    Interest Rate: 6.8 %
    Loan Amount: $ 80000
    Adjusted Gross Income (AGI):$ 35000 (Roughly what a officer would make here)
    Marital Status: Married or head of household
    Family Size: 4
    State of Residence:Continental U.S

    Months Monthly Payment Total Payments w/interest
    Income Contingent- 300 $ 230.00 $ 165891.84

    So at 230 for 120 months = $27,600 (CONGRATS after 10 years, you've paid off 1 YEAR of College)

    $165,891.84 - $27,600 = $132,291 Left to pay

    So, by my guesstimation, they'd be footing erhmm, I mean forgiving $132,291
    of the loan amount.Which would take me.. what another 40 dern years to repay!!! Hmm I guess if for 10 years you can get them their money, it might seem like a great deal.. Here's the link for the calculators...

    http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html

    EDIT:The income contingent repayment plan gives you the flexibility to pay your loan(s) without undue financial hardship. Each year your monthly payment is adjusted based on your annual income (and your spouse's income if you're married), your family size, and the total amount of your Direct Loan(s). After 25 years, any unpaid loan amount will be forgiven. Parents may not use this plan to repay PLUS loans.

  4. #4
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    Last edited by LawDog99; 09-09-2011 at 12:31 AM.

  5. #5
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    Under standard repayment the time to pay it off is 10 years, however, if you go on the "income contingent plan" It lowers the monthly payments, but spreads it out from 120 Months to 300 months..

    $100,000 a year, and I'll pay my own dern loans. It also factors in family, head of household , loan amount, how MANY loans you have etc. Not going to be for everyone, but, there might be someone out there that might find it helpful. Adding up all that cash is making me glad I'm reducing my loans by 60% :P

  6. #6
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    They have to include defaulted loan since more and more students have defaulted on their loans. There was even a piece on 60 minutes about it.

    Those who have defaulted are the ones who need the best assisstance to get back on track.

  7. #7
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    Last edited by LawDog99; 09-09-2011 at 12:31 AM.

  8. #8
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    Quote Originally Posted by LawDog99 View Post
    Robocop007, you're right about some people needing the help more than others, but I believe the law being discussed specifically disqualifies anyone who has defaulted on their federal loans from entering this repayment plan. This plan is really a waste of legislation.
    Yeah, the number of people defaulting goes up all the time!! WE SHOULDN'T HAVE TO PAY FOR COLLEGE IN THE RICHEST COUNTRY IN THE WORLD!! Most Europe and Canada get free or mostly free education. I'm not talking about getting a PENNY of cash but they should simply cover the tuition!

    There's NO reason why they can't do that! The can even make stipulations such as you need to maintain a "C" average and you need to graduate. If they have those conditions then they can definitely do it!!

  9. #9
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    if ones borrows the money they have to pay it back, simple enough
    people are always looking for a free ride

  10. #10
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    Quote Originally Posted by trooperden View Post
    if ones borrows the money they have to pay it back, simple enough
    people are always looking for a free ride

    But government subsidizes several industries but many just don't know it. Education is MOST important so they should really be doing it. Did you know beef would be over $30 a pound if they didn't get water subsidies from the government?

    If the government didn't repeatedly bail out the airlines only the very rich could fly since each ticket would be many thousands of dollars. There are many other examples.

    If European countries and Canada can susidize eduation then so can we. It doesn't have be totally free but it should be pretty close. It's for the good of the future of the nation.

  11. #11
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    You get all the way through high school with little charge, that is enough for you to support yourself, if you want extra you get to pay. If you think state universities are not govment funded then you really have no clue what it costs to run a school and what 20k a year gets.

  12. #12
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    good post, 120 payments on the Student Loans...i got 8,000 to pay might as well pay it off in like under a year..

    got my Perkins loans, 2500 written off though or deferred

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