Student Loan Forgiveness For Nonprofit Employees

Student Loan Forgiveness For Nonprofit Employees

Photo of three employees working for a non profit charity, all browsing their computers on the same deskQualification for the Public Service Loan Forgiveness Program

  • Must be a local, state of federal government employee or work for a 501(c)3 nonprofit organization
  • Must work full-time (a minimum of 30 hours/week)

Public Service Loan Forgiveness: How it Works

  • Eliminate all remaining federal student loan debt after 10 years of qualifying payments
  • Combine with Income-Based repayment option to significantly reduce your payments
  • Combine with a student loan consolidation for one easy monthly payment

Make Your Loans Eligible Through Consolidation

Loan forgiveness under this program is available only for loans made and repaid under the Direct Loan Program. Loans made under other federal student loan programs may be eligible for forgiveness if they are consolidated into a Direct Consolidation Loan. To get help with a direct consolidation loan, call today.

Federal Perkins Loan Cancellation

Certain nonprofit employment categories qualify for Federal Perkins Loan Cancellation, including the below:

  • Peace Corps or Vista employees
  • Librarian with a master’s degree working in a Title I-eligible elementary or secondary school or in a public library serving Title I-eligible schools
  • Full-time employee of a public or nonprofit 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 prekindergarten or child care program that is licensed or regulated by a state (for service that includes August 14, 2008, or began on or after that date)

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 includes August 14, 2008 and after.  Cancellation happens after 5 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 has designated. If you have any questions on Perkins Loan cancellation, contact the school or loan servicer.