Loan Forgiveness and Options
Dear Betsy,
Are you aware of any loan forgiveness programs for social workers? I researched the National Association for Social Workers and did not see any that were relevant to my situation. I also checked with my lender and there was nothing available for me. I work and I pay my bills but can’t seem to keep up—I know I am not in a unique situation.
My salary is about $2,000 a month, and my repayment is $1,400 a month. I feel like I am drowning and I am looking for solutions. I want to pay back the loan in a realistic manner. I have been in school for the past 12 years. I am dedicated to my field and would also like to advocate for other social workers dealing with similar circumstances. Do you have any suggestions?
Sincerely,
Linda
Dear Linda,
Starting July 1, there will be a new lower payment option for federal student loans called the Income-Based Repayment (IBR) option. Under this option, your student loan payments can be as low as no more than 15% of your income, minus the poverty level for your family size. After 25 years, any remaining balance may be forgiven.
There is also Public Service Loan Forgiveness, in which you make payments for 10 years while working in an eligible field (some social work qualifies), and if there is a balance left at the end of that time, it will be forgiven. If I were you, I’d apply for the IBR for the first 10 years and see if you qualify for forgiveness at the end of that period. You will be able to find out more about this option from your loan holder as we get closer to the July 1 effective date.
Until then, there is some great information about IBR available on this website: www.ibrinfo.org. You may want to consider an Economic Hardship Deferment to postpone your payments in the meantime—which is also something your lender can assist you with.
Regards,
Betsy
