Student Loan Forgiveness FOR PUBLIC SERVICE EMPLOYEES PRESENTED

Student Loan Forgiveness FOR PUBLIC SERVICE EMPLOYEES PRESENTED BY: KAREN GOODENOUGH, MSW, LGSW, PHD STUDENT TITLE IV-E NATIONAL ROUNDTABLE, 2015

The Consumer Financial Protection Bureau estimates that… Approximately one-quarter of workers in the U. S. qualify for Public Service Loan Forgiveness and fail to take advantage of it.

Several National Programs Eligibility criteria may include: § Type of employment § Number of years employed in a specific area § Timeliness of loan payments § Personal issues and concerns, including illnesses, disabilities, and death

3 Different Ways Programs Work § Back-end forgiveness § Up-front forgiveness § Stipends

Back-End Forgiveness The borrower works for a certain number of years in a certain field, at which point the borrower may apply to forgive his/her remaining student loan balance. Program Example: ◦ Public Service Loan Forgiveness Program

Up-Front Forgiveness The borrower works in a certain field and gets his or her loan debt partially forgiven each year, until the balance is $0. Program Example: ◦ Federal Perkins Loan Forgiveness Program

Stipends The borrower participates in a national program aimed to increase the number of qualified professionals in a certain field, for which the borrower receives a stipend for student loan repayment. Program Examples: ◦ National Health Service Corps (NHSC) Loan Repayment Program ◦ Herbert S. Garten Loan Repayment Assistance Program

Discussion § What other national or state level programs are you aware of? § Do you currently share loan forgiveness information with your students or staff? How? § How will you share what you’ve learned today? § What additional resources would be helpful?