Forgive Student Loans Non Profit Employees
Forgiveness of student loan debt is a hot topic in the news right now. We’re seeing more and more stories about the American taxpayer being asked to pay for the forgiveness of student loans. But what if there was a way to get student loan forgiveness without having to ask the government for help? What if you could get your student loans forgiven by working at a non-profit organization?
It’s true! If you work for a non-profit organization that’s eligible for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, then you may be able to get your student loans forgiven through what’s called an “employer-sponsored plan.” This means that your employer will pay off all or part of your student loan balance as part of their employee benefits package.
How Does It Work?
The process starts with applying for employment at an eligible non-profit organization. Then you’ll have to provide proof of your income eligibility by submitting IRS Form W-2s or 1099s from previous years (this will require some digging up). Once this is done, your employer will send in an application to set up an Employer Student Loan
Forgive Student Loans Non Profit Employees
Teachers, police and hospital workers are often hailed as heroes. As nice as the praise is, it doesn’t put food on the table or lower their bills.
For millions of them, one of the biggest monthly bills is their student loan repayment. Semi-fortunately for them, the government has a student loan forgiveness program for nonprofit workers and others in the public service industry.
We say “semi-fortunate” because the Public Service Loan Forgiveness (PSLF) program has been a case study in government dysfunction since it began in 2007. At one point, 99% of applicants were rejected.
It wasn’t that they didn’t qualify. There was mass miscommunication over the proper repayment plans, which loans were eligible and whether applicants worked for a qualified employer.
Reforms have been put in place, so it truly is possible to have student loan forgiveness if you work for a nonprofit. The PSLF is likely the best option for government workers, people who work for eligible 501c3 nonprofit organizations or in public service, like firefighters or police officers.
The goal is to make such jobs more attractive to people by having their loans forgiven after 10 years of qualified payments. Here’s a look at the basics of the system.
Public Service Loan Forgiveness: How it Works
- Eliminates all remaining federal student loan debt after 10 years or 120 qualifying payments.
- Combines with an income-based repayment option to significantly reduce your payments.
- Combines with a student loan consolidation for one easy monthly payment.
Public Service Loan Forgiveness Eligibility
- Must be a local, state, tribal or federal government employee or work for a 501(c)3 nonprofit organization.
- Must work full-time (a minimum of 30 hours/week).
You should submit a PSLF & Temporary Expanded PSLF form annually or when you change employers. That will ensure you are on the right track and make sure you are making qualifying payments.
Student loan payments have to be made under an income-based repayment plan, which is part of the limited PSLF waiver. AmeriCorps and Peace Corps volunteers are also eligible.
What Is the Criteria for a Qualifying Payment?
A qualifying payment for the PSLF program is one that has been made:
- Under a qualifying repayment plan.
- No later than 15 days after the due date.
- Payments made after Oct. 1, 2007.
- While you are employed full-time by a qualifying employer.
Qualifying payments can’t be made while you are enrolled in school, during the grace period or while a loan is in deferment or forbearance.
Payments don’t have to be consecutive, so if you work for a non-qualifying employer and return to a qualifying employer, you will retain credit for the prior payments.
How Can I Check If I Work for a Qualifying Employer?
It’s paramount to make sure your employer is qualified for the loan forgiveness program. The PSLF Help Tool keeps a database of about 2.7 million qualified employers that is updated on a regular basis.
Fortunately, you don’t have to scroll through all 2.7 million looking for your employer’s name. The PSLF Help Tool generates a form that you submit. If your employer qualifies, you receive a count of the number of payments you have made toward both the PSLF and TEPSLF from FedLoan Servicing.
The specific job you perform does not matter as long as you’re employed by a qualified employer. For instance, if you work for a school system, it won’t matter if you are a principal, a teacher or a janitor.
Federal Perkins Loan Cancellation
Certain nonprofit employment categories qualify for Federal Perkins Loan Cancellation, including those listed below:
- Peace Corps or Vista employees.
- Librarian with a master’s degree working in a Title I-eligible elementary or secondary school in a public library serving Title I-eligible schools.
- Full-time employee of a public or non-profit child- or family-services agency providing services to high-risk children and their families from low-income communities.
- Full-time staff member in the education component of a Head Start program.
- Full-time staff member in a pre-kindergarten or child care program that is licensed or regulated by a state (for service that began Aug. 14, 2008 or after).
How to Qualify for Perkins Loan Cancellation
- Must be a full-time attorney employed by a federal public or community defender organization.
- Forgiveness is only available for Perkins Loans.
You are eligible for 100% loan forgiveness under the Federal Perkins Loan Cancellation program for service that began Aug. 14, 2008 or after. Cancellation happens after five years, as follows:
- Year One: 15% cancellation
- Year Two: 15% cancellation
- Year Three: 20% cancellation
- Year Four: 20% cancellation
- Year Five: 30% cancellation
If you have a Federal Perkins Loan, you must apply to the school that made the loan or to the loan servicer the school designated. If you have any questions on Perkins Loan cancellation, contact your college or loan servicer.
Make Your Loans Eligible through Consolidation
In almost all cases, if you consolidate your loans, only the qualifying payment you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF.
However, if you consolidate those loans in a Direct Loan before Oct. 31, 2022, you may be eligible for qualifying credit payments made on those loans through the limited PSLF waiver.
To get help with a direct consolidation loan, student loan consolidation and refinancing, call today.
student loan forgiveness for healthcare workers
Like other public service employees, healthcare providers who work at nonprofit or government organizations can qualify for Public Service Loan Forgiveness. You can also sign up for an income-driven repayment plan to pay off your federal loans. This lowers monthly payments to a percentage of your income—resulting in forgiveness of any remaining balance after 20 or 25 years.
Beyond these widely available programs, there are other options specific to healthcare workers, as well:
To get student loan help based on service, healthcare grads often must commit to working in an underserved region, for a specific government agency or in a high-need specialty.
Several states have programs that offer loan repayment or forgiveness to healthcare providers working in Health Professional Shortage Areas (HPSA). They may forgive a certain amount of loan debt after a period of service, but often they provide repayment assistance for a fixed time frame to offset a participant’s loan bills.
8 Loan Forgiveness Options for Healthcare Workers
Student loan repayment and forgiveness programs can limit the amount you’re required to pay back. And it’s not just physicians who may qualify for student loan forgiveness based on their healthcare service.
Student loan forgiveness for nurses, nurse practitioners, certified nurse midwives, licensed clinical social workers, dentists, veterinarians, researchers and more all have programs available. Here are some you should consider.
National Health Service Corps (NHSC) Loan Repayment Programs
The National Health Service Corps, run by the federal Health Resources & Services Administration, offers three different loan repayment programs for healthcare providers. These offer loan repayment assistance in exchange for at least two or three years of service in certain locations:
NHSC Loan Repayment Program: This option is for primary care medical, dental or mental health providers. In exchange for two years of employment in an HPSA, you can receive up to $50,000 in loan repayment for full-time work or up to $25,000 for part-time work. A contract extension beyond two years is possible, which can help you pay off up to your remaining outstanding loan balance.
NHSC Substance Use Disorder Workforce Loan Repayment Program: This option is for trained and licensed substance use disorder treatment providers, particularly for opioid addiction. You must work in a primary care medical, dental or mental health discipline at an NHSC-approved substance use disorder treatment site in a HPSA. You can get up to $75,000 for three years of full-time work or $37,500 for part-time work.
NHSC Rural Community Loan Repayment Program: Also focused on providers of substance use and opioid addiction treatment, this program provides a larger amount of student loan repayment assistance if you commit to working in a rural area. You can earn up to $100,000 in assistance for three years of full-time work or $50,000 for part-time work.
The same application applies to all three programs, but you can only apply for one program in total.
NHSC Nurse Corps Loan Repayment Program
Nurses have an additional NHSC-run loan repayment assistance program to choose from: Nurse Corps. If you’re a registered nurse, advanced practice registered nurse or nurse faculty, you could have up to 85% of your outstanding nursing school debt paid off.
To qualify, you must work in an eligible critical shortage facility or an accredited school of nursing at least 32 hours per week. The student loan repayment award is 60% of debt paid off over two years plus another 25% paid off for an optional third year.
National Institutes of Health (NIH) Loan Repayment Programs
Clinical researchers focused on biomedical or biobehavioral research can receive up to $50,000 in loan repayment per year from the NIH—whether they’re working at an NIH lab or for an external employer on research deemed critical for the NIH.
You must have a doctoral degree, such as an M.D., Ph.D., Pharm.D., Psy.D. or D.D.S., and your student loan debt must equal or exceed 20% of your salary.
Indian Health Service Loan Repayment Program
The federal Indian Health Service awards up to $40,000 in loan repayment to clinicians who commit to two years of service in healthcare facilities focused on serving American Indian and Alaska Native communities.
A wide range of professions can qualify, from advanced practice nurses to physical therapists (with a master’s or doctoral degree) to licensed acupuncturists.
Centers for Disease Control and Prevention (CDC) Epidemic Intelligence Service Program
This two-year postgraduate fellowship is an opportunity for physicians, nurses, veterinarians, pharmacists and more to investigate epidemiological outbreaks, natural disasters or other public health issues for the CDC. You may be assigned to a state or local office or to the CDC headquarters.
One of the benefits is up to $50,000 per year in student loan repayment, depending on funding availability. Only federal student loans qualify for repayment.
State-specific Programs
In addition to federal agencies, many states offer forgiveness programs for healthcare workers. These programs often require participants to work in rural communities, HPSAs or other high-need areas.
Here are a couple examples of state-specific programs for healthcare workers:
Georgia: Doctors in primary care specialties can earn up to $25,000 per year for four years when working full-time in rural areas in Georgia through the Physicians for Rural Areas Assistance Program.
Ohio: The Ohio Physician Loan Repayment Program also provides $25,000 per year in loan repayment for two years and $35,000 per year for optional third and fourth years to eligible healthcare workers in HPSAs.
Award amounts and service commitments vary—and whether or not the award amount is taxable as income depends on the program. To find state opportunities specific to your discipline, check with your school or explore lists maintained by industry organizations like the Association of American Medical Colleges and the American Dental Education Association.
No matter the type of care you provide, you’ll most likely find a program that will reward you for working in locations particularly in need of your talents.