Public Service Loan Forgiveness (PSLF) isn’t just for military members. Individuals like doctors, teachers, and government workers also can cash in of this program. so as to qualify, you want to have a qualifying federal student loan and a qualifying repayment plan. you want to also work for a qualifying employer for 10 years, submit the acceptable paperwork annually, and make 120 on-time student loan payments.
Once all this is often done, you’ll submit an application for PSLF and therefore the federal will forgive any outstanding loan balance. Unlike CLRP, any money you receive under PSLF doesn’t count toward your taxable income for the year, so it won’t raise your bill .
Military members can qualify for PSLF, so this is often an option worth exploring if you do not qualify for CLRP or if you’ve exhausted the advantages you’re entitled to under CLRP. But if you plan to pursue PSLF, you’re more happy enrolling soon after you graduate so your 10-year clock starts directly .
If you are a military member, a veteran, or a university student curious about joining the military, you’ll qualify for military student loan forgiveness. Explore all of your options before you enroll and confirm you understand all of the principles and eligibility requirements for the forgiveness program you’re curious about .
You can qualify for the student loan repayment benefit up to a maximum amount of $10,000, if you enlist for a minimum of three years. When you complete your first active duty service, you’ll get $1,500 or 33.33% on your remaining principal balance. From then on, you’ll receive payment until you reach the $10,000 limit.
Marines College Loan Repayment Program
Currently, the Marines don’t offer any military college loan repayment for their service members. In 2007, they launched a trial program to offer a maximum of $30,000 in loan repayment for service members who would accept to serve in active duty for an additional six months in their new enlisting contracts. The program got discontinued in 2011.
Coast Guard Loan Repayment Program
The Coast Guard offers new service members up to a maximum of $30,000 loan repayment benefit. You will receive a cap up to $10,000 after the first year of active service. From then on, you can receive the benefits for the next six years, of course, if you haven’t reached the $30,000 mark yet. But you have to sign a contract of three years of military service for you to benefit from the program.
There’s important information to note here. If you receive benefits from the program and later leave the Coast Guard for a different military, you will have to pay back all the money the government gave you to cover your loan debt. If you are not cautious, you could be paying huge bills for a long time. So, don’t enlist to leave soon. The repercussions can be problematic and regrettable.
But if you want to avoid the interest from accumulating altogether, then you have to defer your payments. However, you can only do so while in active duty. What you have to do is to request your lending company that they suspend your loan debt. If they defer your payments, you won’t get an increment in your interest even though your CLRP benefits are clearing your principal loan. Again, that can only happen as long as you serve in active duty.