Student Loan Forgiveness for Federal Employees
Student Loans 101-Forgiveness for Federal Employees
Student loans got you down? Well, here’s another great reason to work for the federal government. More than twenty federal agencies and fifteen cabinet departments participate in an amazing student loan forgiveness program. Federal Educators has a quick guide on how this could impact your career.
What is it?
Created to attract top talent and encourage retention, the federal student loan repayment program is a fantastic employee benefit for those that work in the public sector. Federal agencies can incentivize qualified candidates with designated funds for loan repayment assistance. These funds are different from the Public Service Loan Forgiveness (PSLF) program because they are exclusive to federal employees, not just full-time public sector employees.
Eligible employees can receive up to $60,000 over six years or $10,000 annually for federal student loans. Additionally, parents plus borrowers can take advantage of this program if they’re a federal employee that took out federal loans on behalf of their child. However, private student loans are not covered under this program.
Who is eligible?
All federal employees that are “highly qualified” are eligible for this program. In short, the federal agency that you work for decides who to provide loan repayment assistance to on an individual basis. Chosen candidates must then sign a service agreement and commit to at least three years at the agency. Once finalized, the agency submits payments directly to the student loan holder.
Your eligibility in this program is up for renewal annually, pending your work performance results. Should you decide to quit or are let go from the agency, you will have to pay those benefits back. Also, it’s important to note that this repayment assistance is not tax-exempt and included as part of your gross income on your tax return.
How do I apply?
If you are looking for student loan assistance benefits in your next job, this program is for you! Federal Educators can help you navigate the details and all the fantastic benefits that come along with it. Give us a call at 866-226-8160 to get started today!