Monday, January 23, 2012

What jobs are considered "Public Service" under the new student loan forgiveness legislation?

My major is Accounting so, I wondered exactly what accounting jobs are considered public service. Does that mean simply working for the government or is it more specific?What jobs are considered "Public Service" under the new student loan forgiveness legislation?This is one of those programs that looks really great on paper, but when you figure out how worthless it is, it seems a little strange they even mention it. First, you have to pay on the loan for 10 YEARS before you are eligible for forgiveness of the remaining balance... and since all federal loans are put on a 10 year payment plan (120 payments) your loan will be paid off the month you are eligible to get it forgiven. Pretty stupid uh? You get this to work to your advantage by taking a very low paying job and choosing a payment plan to reflect this... of course, you may starve to death for 10 years and in the end have about 20 bucks forgiven because that is all you owe after paying on it for 10 years.



Anyway, for public service: "if you are employed in certain public service jobs and have made 120 payments on your Direct Loans (after Oct. 1, 2007), the remaining balance that you owe may be forgiven. Only payments made under certain repayment plans may be counted toward the required 120 payments. You must not be in default on the loans that are forgiven."



For purposes of the Public Service Loan Forgiveness Program, the term “public service organization” means –

A federal, state, local, or Tribal government organization, agency, or entity (includes most public schools, colleges and universities);

A public child or family service agency;

A non-profit organization under section 501(c)(3) of the Internal Revenue Code that is exempt from taxation under section 501(a) of the Internal Revenue Code (includes most not-for-profit private schools, colleges, and universities);

A Tribal college or university; or

A private organization that is not a for-profit business, a labor union, a partisan political organization, or an organization engaged in religious activities (unless the qualifying activities are unrelated to religious instruction, worship services, or any form of proselytizing) and that provides the following public services –

Emergency management;

Military service;

Public safety;

Law enforcement;

Public interest law services;

Early childhood education (including licensed or regulated health care, Head Start, and state-funded pre-kindergarten);

Public service for individuals with disabilities and the elderly;

Public health (including nurses, nurse practioners, nurses in a clinical setting, and full-time professionals engaged in health care practioner occupations and health care support occupations);

Public education;

Public library services; and

School library or other school-based services.

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