$65,000 in student loans forgiveness full details (Student Loan Forgiveness Program)

What’s up everybody this is Positive Finances where we talk about everything and anything that involves you and your money.

According to the Department of Education in 2019 people that applied for student loan forgiveness had a rejection rate of more than 90% of applicants.

Currently, in 2022 we have an estimated 43 million Americans carrying student loans that are worth all the way up to $1.6 trillion. In 2020 Federal student loan payments were paused during the coronavirus pandemic and so far, the President has said the payments will remain paused up to Aug. 31, 2022.

Now before we continue let’s talk about some of the people who qualify for the Public Service Loan Forgiveness program. You will need to be working at least 30 hours a week for any government agencies that fall under Federal, State, Local, or Tribal levels. If you are a member of the military, a full-time volunteer with Ameri Corps, or the Peace Corps. If you are working for nonprofits as public interest lawyers, emergency management, legal aid and legal services, early childhood education, service to individuals with disabilities or the elderly, public health, including nurses and nurse practitioners, public library and school library services, and public safety such as crime prevention and law enforcement. Also, if you are working for school districts, if you are teachers, librarians, or nurses, then you qualify for the Public Service Loan Forgiveness program under the new less stringent rules, but you will need to act fast because the current cutoff is currently set to October 31, 2022.

And do not worry if I did not mention your job as a qualifying job. According to the department of education if you are currently unemployed or not working for public services you can still apply for forgiveness. It doesn’t hurt to apply bc the worst thing they can say is no, so why not go for it and apply?

The Public Service Loan Forgiveness program as we know it was launched all the way back in 2007. The primary focus of the program was for encouraging more graduates to go for public service jobs. The program was not intended for canceling 100% of the student loans. The program was designed to cancel the remainder of the federal student loan debt after the borrower made 10 years of monthly payments while maintaining a job doing public interest work, and even if your payments have been deferred since the pandemic that time still counts towards your 10 years of scheduled payments.

Basically, if you commit 10 years of your life proudly working for the government and or communities you qualify for the government to cancel the remainder of your student loans through the Public Service Loan Forgiveness program.

The process can be a little difficult to navigate, even with the current relaxed rules. Some applicants have reported it took them five months to complete the paperwork and another three months to hear back from the program, but don’t let this intimidate you. You need to start now and stay hyper-focused on it to make sure you at least try your best. If you can get the remainder of your student loan forgiven for your time working for the government or your communities, then it is totally worth applying.

As of July 2022, the government has forgiven a total of almost $8.1 billion in federal loans. The average amount of debt forgiven is around $65,000 per person. I don’t know about you, but $65,000 is a huge chunk of money. Having $65,000 forgiven in return for your time-in-service would-be life changing and a huge load off your shoulders.

Under the old rules, if you were a little behind or late on any of your payments you no longer would be able to qualify for the loan forgiveness, but with the new rules, you can still be considered for the loan forgiveness even if you are a little behind on your payments.