| Student loan forgiveness for social service |
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trulove3742
New Poster
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Location: Missouri
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| Student loan forgiveness for social service |
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Does anyone know anything about the bill that went through in 2007 about the Student Loan forgiveness for Social service? I just found out about this and it is a federal loan program. I just switched over to Direct loan from Mohela so that i could benefit from this program. The program is set up so that you pay under an Income Based Repayment plan for 10 years and the remaining balance on your loan is forgiven after that time. I am nervous about this because they do not start forgiving these balances until after 2017. There is no paperwork to fill out and they just suggest that you keep documents to prove that you worked in social service for 10 years with no break in between. When they pay off the remaining balance, does that include the interest that has capitalized over 10 years? I was just wondering if anyone has had experience with anything like this. It is stressful to have to wait 10 years and 'hope' they will forgive it.
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Thu Nov 18, 2010 3:03 am |
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oldguy
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The down side of this bill is that you must work 10-yrs straight at a social service job. And the job must be low-paying.
Most people will be money ahead by working at normal pay, earning an extra $10,000 or so per year, and using that money ($100,000) to repay their loan. But you have to do the math for each case - how big is your student loan? And what kind of jobs are you qualified for - low wage or average wage?
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Thu Nov 18, 2010 4:29 pm |
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trulove3742
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I am a teacher and plan to be one for at least 10 years. However, I want to go into Higher Education eventually. So i would say about average wage? My salary will go up some every year based on experience and depending on where I accept another job in the future. I owe 40,000 dollars. I may or may not pay it off in 10 years, but I doubt it. The IBR plan takes a percentage of your gross income and you pay that much back. Unfortunately, I believe you cannot change your payment plan after you enter into the IBR plan. You may be able to go back to the standard repayment, but not sure. I just don't want my loans to skyrocket after a few years because of a higher income. My gross income isnt even close to what I actually make because tons of retirement funds are taken out every month. I only bring home about 1700 dollars a month and its barely enough to cover the bills every month as it is. I enter into loan repayment soon.
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Thu Nov 18, 2010 10:41 pm |
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coaster
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Maybe you're having too much deducted for retirement funding?
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Fri Nov 19, 2010 4:27 am |
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