THE BLOG
10/29/2013 11:41 am ET Updated Dec 06, 2017

I Work for HHS and Want to Get My Student Loans Forgiven

Huffington Post Reader Question

Dear Steve,

I have a total of 102K in private student loan debt (Sallie Mae) and a total of 52K in federal student loan debt and I am currently working a job that grosses 40K annually, I work for the department of human services and was recently informed that I may be eligible for the loan forgiveness program for my federal loans.

The payments on my private loans are about 700.00 per month which makes it impossible to live. I am currently on the interest only repayment plan. I would to purchase a home and a reliable vehicle but it is not possible to do based on my current student loan situation.

Are there any options that i have to get my payments lowered to something more reasonable. I would also like to know if there are any loan forgiveness plans for my private loans.

Kim

Don't miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Subscribe now. - Click Here

Dear Kim,

It is true that certain public service employees can get a substantial discharge of their federal student loans under the Public Service Loan Forgiveness Program (PSLFP). More details here.

Unless HHS has an internal program, I believe that is the program that best deals with your federal loans. The key though of that program is that you have to make 120 on-time, consecutive monthly payments and only payments made after October 1, 2007 count. So we are still a few years off from anyone having loans discharged under that program.

It wasn't clear what repayment program your federal loans are on. There are only a few that are generally eligible under the PSLFP. These include, Income-Based Repayment Program, Pay-As-You-Earn Plan, Income-Contingent Repayment Plan, and 10-Year Standard Payments. For more on these options, click here.

When it comes to private student loans, now there is a black hole. Private student loan lenders are not required to offer any concession programs. They struggle to offer disability discharge programs. There are certainly not the type of loan forgiveness programs like there are with federal loans.

Your options are only going to be what the private student loan holder offers.

Get Out of Debt Guy - Twitter, G+, Facebook

If you have a credit or debt question you'd like to ask, just click here and ask away.

If you'd like to stay posted on all the latest get out of debt news and scam alerts, subscribe to my free newsletter.