These payment need to be done under what is called a qualifying repayment plan
Miami, FL (PRWEB) September 30, 2014
National Debt Relief explains in a recent article published September 28, 2014 how the Public Service Loan Forgiveness program has found an ally in Sen. Blumenthal. The article titled “Read What Dick Blumenthal Wants To Do To Public Service Loan Forgiveness” explains how his proposed legislation might increase graduates looking to jumpstart their career in the public sector.
The article starts off by explaining how the existing Public Service Loan Forgiveness or PSLF program works. At present, a person with student loans who chooses to work in the public sector gets the chance to have his or her student loan forgiven in a span of ten years. This was initially designed to lure more young people to work in the public industry.
But this is easier said than done because under the PSLF program, payments still has to be made during the ten years. Getting a job in a federal, state or local government or at a non-profit organization designated tax-exempt by the Internal Revenue Service or IRS is the first step. The 120 payment in ten years has to be on time and full monthly payments.
These payment need to be done under what is called a qualifying repayment plan and the student loan holder must be working a full time position at a qualifying public service organization where payments are being made. This is where the legislation being proposed by Sen. Blumenthal comes in to the picture.
The article explains that his bill would alter the Public Service Loan Forgiveness program so that 15% of a government worker’s student loan would be forgiven after two years. Two years after this, another 15% would be canceled. If the borrower is still in the public sector after six years, they would see another 30% of the debts forgiven. Then, after 10 years on the job, the remaining 30% will be forgiven.
To read the rest of the article, click on this link: http://www.nationaldebtrelief.com/check-dick-blumenthal-wants-public-service-loan-forgiveness/