For University of Oregon employees and current students aspiring to work in the public sector, listen up: You may be eligible to have your student loans forgiven through the Public Service Loan Forgiveness program.
The program was established in October 2007 with the passage of the College Cost Reduction and Access Act, federal legislation that was meant to encourage individuals to enter into essential public service careers such as law enforcement, public health, military service or public education — like the UO, which is a 501(c)(3) organization.
To qualify for the program, an individual must be working full time at a qualified public service organization. Public service employees who took out Direct Subsidized, Direct Unsubsidized, Direct PLUS or Direct Consolidation loans are eligible to have the remainder of any loans taken out after Oct. 1, 2007, forgiven after they’ve made 120 qualifying payments while employed full-time with a qualified employer.
“The UO is a qualified employer under the program guidelines because it is a tax-exempt public entity that provides education, which presents a unique opportunity for employees to pursue loan forgiveness,” said Sandee Bybee, UO Human Resources communications manager.
Public service employees can apply for loan forgiveness at any time, and the 120 qualifying payments do not need to be consecutive — for example, an individual can jump from work in public education to the private sector and then to a nonprofit, but their payments made while working in public service will always count as long as they’re the correct type.
“Our goal is to raise awareness and to let people know that they could potentially qualify when remaining with a qualified employer for 10 years or more seeing the program through,” Bybee said. “For example, if you’ve worked here for seven years, staying with the UO for three more will bring you within the eligibility requirements for loan forgiveness.”
Ashley Coleman, an assistant director in the UO Office of Student Financial Aid and Scholarships, is working her way through the program herself. She’s about five years — give or take — into her repayment plan, with another five to go until her loans are forgiven.
“I’ve talked to a lot of people about the program and some of them didn’t even know it existed,” Coleman said. “I’m glad something like this is out there, because people in public service don’t tend to make a lot of money — I’m looking forward to the day when my loans are paid off.”
Applicants for the program must be employed in the public sector before beginning to track their payments. Coleman recommends using FedLoan Servicing, a website that helps track the program certification documents and, upon verification, payments. Because most of the application process is done federally and the UO only certifies proof of employment, it can be useful to track progress, she said.
Jim Brooks, assistant vice president for enrollment management and director of the Office of Student Financial Aid and Scholarships, echoes Coleman’s praise for the loan forgiveness program.
“The two big things that I think are important about this program are that you can apply after 10 years, as long as you qualify,” Brooks said. “The other nice part of it, too, is that with other loan forgiveness programs the amount forgiven is taxable — but this program is not.”
For complete information on the program and to see if your public service employment and/or student loans qualify, visit the U.S. Department of Education’s website. UO students and employees can also contact the Office of Student Financial Aid and Scholarships at 541-346-3221 or by email with any questions.
—By Nathaniel Brown, University Communications intern