New Jersey residents who have federal student loans and work for the government or a charity can often qualify for a program that can lower your monthly payment and still allow you to pay in full in ten years.  It is called the Public Service Loan Forgiveness (PSLF) Program. But in order to get in, you have to have a qualifying employer.

What Jobs Qualify

The Department of Education defines "qualifying employment" as

  • any employment with a federal, state, or local government agency, entity, or organization, or
  • a non-profit organization that has been designated as tax-exempt by the IRS under Section 501(c)(3) of the tax code

What you do for the employer, or the type of services that public service organizations provide,really don't matter for PSLF purposes. Don't work for the government or a charity? Well, a private non-profit employer that is not a 501(c)(3) charity might still qualify!

You Must Have an Income Based Payment Plan

For federal student loan debtors that qualify for the Income Based Repayment (IBR) or Income Contingent Repayment (ICR) plans, this program can be very beneficial, as it can discharge any unpaid balances after 120 payments, rather than 25 years.

So What Should I Do?

If you live in southern New Jersey and would like to consult with me on your loans, please feel free to call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office to discuss your case.

If you would like more information about student loans, you can dowload my free book, I Graduated; Now What? A Guide to Dealing with Your Student Loans.

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Steven J. Richardson
Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.


Richardson Law Offices