CFPB Post on Tips for Service Members with Student Debt

by | 10Nov2017 | Debt, Student loans | 1 comment

The Consumer Financial Protection Bureau put out a pretty good post containing tips for military members with student loan debt. In it they discuss the Public Service Loan Forgiveness Program (PSLF), which is a program that forgives your qualifying federal student loans after you make payments for 10 years. Plus, there is no limit to the amount of the loans that can be forgiven. Doctors, dentists, lawyers, and other professions with expensive schools are using this program to get tens if not hundreds of thousands of dollars of student loans forgiven. You have to work for a public service employer, but the military qualifies.

The PSLF program is something to look into if you have student loans. While many military members use military deferment, the PSLF puts you in an income driven repayment plan where your payments are set to a level based on your income and then after 10 years the remaining balance of your loans are forgiven.

1 Comment

  1. Adrian Elliott

    Of note, under the PSLF program, only Federal Direct or Perkins loans qualify for forgiveness. Federal Family Education Loans (among others), which I have, do not qualify. However, one can apply for a Direct Condolidation Loan, which qualifies. Unfortunately, none of 120 payments made toward the previous loan qualifies, so the clock is reset after consolidation.

    Reply

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