You have to work in the public sector for 10 years to be eligible for student loan forgiveness, but this can be a fantastic option if you want to get rid of your student loans and get out of debt. Not many people are aware of the forgiveness programme and may not realise that they are eligible.
It has been estimated that up to a quarter of people working in the USA could qualify for this program.
The types of jobs that are eligible for the forgiveness program are federal, state or local government jobs or if you work for a non-profit tax exempt organization. Other criteria for eligibility in this scheme involves you not defaulting on your student loan, this means that you must keep up with your student loan repayments for the ten years whilst you are working in the public sector (120 monthly loan repayments).
The forgiveness program will then wipe out any remaining debt owed for student loans. Only certain types of loans are eligible and the below link can provide you with further information;
There are many jobs in the IRS which fulfil the public sector requirement. Examples include Accounting professionals, business and finance professionals, internal revenue agent, tax specialist, tax compliance officer, appeals officer and tax examiner etc. More details can be found below;
People who work in the financial services within the public sector should look to see if they are eligible and their employer should be able to tell them if their job qualifies. Having your student loans written off could make a massive difference to your lifestyle, especially when working one of the entry level finance jobs that may not pay proportionate to what your student loans are charging you.
The beauty of the forgiveness program is that it can attract new graduates to the public sector where they can perform a rewarding career in the knowledge that they are also helping their community. The scheme came into being in October 2007 and only payments made after this date qualify and the repayments should be made under a qualifying repayment plan. All loan repayments must be made on time (no later than 15 days) and must be for the full specified amount agreed.