Do you or someone you know work for a church? Yes, read on.
Does this person still have unpaid student loans? Yes, read on.
Whether the loan was taken as a student or as a parent of a student, church workers are now eligible for PUBLIC SERVICE LOAN FORGIVENESS!
The PSLF program began in 2007 but excluded religious work. On July 1, 2021, new regulations were created to include all employees of 501(c)(3) tax-exempt organizations – which is most churches.
The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time (usually 30 hours per week) for a qualifying employer.
Qualifying Loan
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct PLUS loans (parent took the loan, parent applies, based on parent’s job)
Direct Consolidation Loans (pre-consolidation period does not apply)
Qualifying Employer-It’s the employer, not the job
Any government organization, Americorp, and Peacecorp
501(c)(3) tax-exempt organization
Other nonprofits that provide certain qualifying public services
Qualifying repayment plan
10-year Standard Repayment Plan
All income-driven repayment plans (PAYE, REPAYE, IBR, AND ICR)
120 full payments after October 1, 2007
Paid within 15 days of due date
Paid while employed by a qualified employer
Do not have to be consecutive payments
The 17 months the coronavirus pandemic count towards the 120 payments, if you were employed by a qualified employer. Even if the payment were not made.
Cannot accelerate payments or overpay to get to 120 payments
The qualifying payments can be made while working for multiple qualified employers, HOWEVER, the loan forgiveness application and granting of forgiveness must be while working for the same qualified employer.
GOTO => studentaid.gov/manage-loans/forgiveness-cancellations/public-service or simply Google “Public service loan forgiveness” For more detailed definitions of qualifying employers, full time employment, qualifying loans and payment plans, the PSLF process, tax on loan forgiveness, forms and how to submit forms, as well, help on all of it.