Loan Forgiveness Interestingness

[shake your money maker]

Hi broke ass and fabulous friends,

Lamenting our absurd debt and dismal job prospects, my English PhD friend told me about a "non-profit" loan forgiveness program this weekend so I looked it up.

Turns out it is a "public service" loan forgiveness program that wipes away your remaining debt after 120 payments (or 10 years) as long as you work as a public servant during every one of those payments (and some other similar stuff).

What was most interesting to me was that college and university professors at state/public schools are eligible for this program.

Assuming all of this is true and I, of course, land an amazing job that pays ungodly amounts of money at a state school, I calculated that this would wipe out at least $30k of my debt (without including interest and repaying at the "standard repayment plan").

Here is a PDF with more info:
studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf

I welcome your thoughts! Does anyone know anything else about this program?

[anoni]

Awesome, awesome, awesome!!!

Hey, wait a minute...in order for this to work I FIRST have to land a job at a public university AND keep it for 10 continuous years. Looks like it is back to square 1 - I knew there was a catch!

[takeout]

This doesn't seem too worthwhile. The standard loan term on most federal student loans is 10 years, thus most loans would be paid off before you were even eligible.

[socrules]

This is based on your income..you must be on an income based repayment plan..this program will help those who have a large amount of debt and have a low paying job. it is for private college employment also.