PUBLIC SERVICE fORGIVENESS

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 Did you know that there are currently over 33 million Americans who qualify for the Public Service Loan Forgiveness program, but less than 1% will actually correctly enroll and take advantage of the program? If you work at a 501(c)(3) or a government organization and have student loans, please read this, it might save you thousands of dollars and lower your student loan payment. Don’t be part of the 99% who are eligible, yet fail to take advantage of this program. 

Under the Public Service Loan Forgiveness Program, eligible borrowers will have their federal student loans forgiven after 120 qualifying payments (10 years). Currently there are no limits on the amount that can be forgiven and forgiveness is not taxable income.

Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a non-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC). The type or nature of employment with the organization does not matter for Public Student Loan Forgiveness purposes. Additionally, the type of services that these public service organizations provide does not matter for Public Service Loan Forgiveness purposes.

Employer                                                          Qualifies?
Federal, State, Local Government :             Yes
Non-Profit 501(c)(3):                                         Yes
Non-Profit in Public Services:                       Maybe, see below.

A private non-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services. These services include:

• Emergency management
• Military service
• Public safety, or law enforcement services
• Public health services, public education or public library services
  School library and other school-based services
• Public interest law services
• Early childhood education
• Public service for individuals with disabilities and the elderly.

The organization must not be a labor union or a partisan political organization. Generally, the type or nature of employment with the organization does not matter for Public Service Loan Forgiveness purposes. However, when determining full-time public service employment at a not-for-profit organization you may not include time spent participating in religious instruction, worship services, or any form of proselytizing.