Consolidating schedule

For one thing, there's a rigid time limit: “Public service loan forgiveness occurs after 10 years of full-time service.

It is an all-or-nothing benefit, so borrowers who stop working before reaching the 10-year mark will get no forgiveness.” Your eligibility for student loan forgiveness not only depends on the type of student loan but the type of service.

Only direct loans made by the federal government (the William D.

Ford Federal Direct Loan Program) are eligible for student loan forgiveness.

Potentially-eligible positions include those in nursing, government, police, fire and social work.

Only payments made after October 1, 2007, qualify towards earning eligibility, so borrowers won't reach the 120-payment milestone to qualify for forgiveness until 2017.

Each has its own conditions, requirements and limitations. The Public Service Loan Forgiveness Program (PSLF) is designed specifically for people who work in public service jobs, either for the government or for a nonprofit organization.

You may also be able to get all or part of your loan forgiven through certain types of volunteer work, military service or medical practice.

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Federal Direct Subsidized and Unsubsidized Loans – and Subsidized and Unsubsidized Federal Stafford Loans – may also be forgiven if you teach an understaffed subject such as math, science, or special education or work in a school in a low-income neighborhood.In reality, though, not that many people end up being eligible.Requirements vary depending on the type of loan, but most offer forgiveness for those employed in certain public-service occupations.In order to get some debt forgiven under the public service program, you must first make 120 qualifying payments (meaning, paying the minimum amount due on time).These payments must be made while you are working for a qualified employer – generally, a federal, state or local government organization or a nonprofit organization with tax-exempt status: In effect, you qualify after 10 years on the job and 10 years of payments.Non-federal loans (those handled by private lenders and loan companies) aren’t part of this program. Ford Direct Loan, and instead borrowed through the Federal Family Education Loan Program (FFEL) or Perkins Loan Program, you are allowed to consolidate these debts into a Direct Consolidation Loan; this new piece of consolidated debt would then be eligible for public service loan forgiveness, under the same terms as those described above.

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