“Dear Steve,
I have student loans that are more than 5-10 years old from undergrad and graduate school of $84,000 or more. I have made payments over the years but not consistently. recently my wages were garnished and created a financial hardship for me. After a least ten years or more could my loans be forgiven?
I just read your article regarding student loan debt. Is there any programs for someone who works for a state agency for more than fifteen years and has student loan debt of subsidized and unsubsidized loans that are at least ten years old
Monica”
Dear Monica,
The good news is if we get this situation finally under control and organized then there is hope you can have your wage garnishment terminated and your loans eventually forgiven. But it will require 120 on-time payments of even as little as $0 per month. Yes, zero.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
The first step is to end this garnishment. See The Easiest Way to Stop a Student Loan Wage Garnishment – Loan Rehabilitation.
Once your loans are back and considered current then you just need to stay on track to have your loans forgiven under the Public Service Loan Forgiveness program.
The key points are that to be forgiven, your loans have to qualify under the program, and:
- You must make 120 on-time, full, scheduled, monthly payments on your Direct Loans.
- Only payments made after October 1, 2007 qualify.
- You must make those payments under a qualifying repayment plan.
- When you make each of those payments, you must be working full-time at a qualifying public service organization.
The on-time payments to not have to be consecutive so maybe you made some payments since 2007 that were on-time and will count.
Please post your responses and follow-up messages to me on this in the comments section below.
My husband and I have made payments for over ten years, however we were not enrolled in the program. Is it possible to back date for this program?
There is nothing to enroll for Public Service Loan Forgiveness, your loans just need to conform to the type recognized. However, recent changes in the law may allow other than Direct Loans to be recognized for forgiveness. Talk to your servicer and if you can’t get anywhere, come back and post a reply here.
Hello, do the 10 years working for a non-profit and/or government organization have to be consecutive?
No. It just needs to be 120 qualifying payments.
Monica, just answered your question.