Are you working for a church or non-profit and
have amassed enough student debt to wonder if there is a way out? I often hear
many students and well-trained lay people lament that they would go into
_______ vocational ministry position if they didn’t have student loan debt.
Did you know the US government will forgive
your debt under certain circumstances? Under the Public Service Loan
Forgiveness Program, the US government will forgive your student loan debt after ten years
of service in a non-profit.
Here are the steps you can take:
- You need
to consolidate your student loans in the Direct Loan Program. Only loans from
the Federal Family Education Loan Program and Federal Perkins Loans qualify.
they are consolidated apply for Income-Base
Repayment Plan. This will lower your monthly payment substantially,
assuming you are not making a lot of money in a vocational ministry position.
There are other plans
you can apply for, but this one is probably best.
- You will need to fill out an Employment Certification for Public Service Loan Foregiveness and have your employer sign off on it.
- Make on
time payments for 10 years. At the end of 10 years the balance of your loan will be forgiven.
You can learn more here.
Darren Carlson is the Founder and President of Training Leaders International. As President, Darren oversees the general direction of the ministry and serves as an advocate for pastors with little access to formal training and thoughtful cross-cultural theological engagement. You can connect with him on Facebook and Twitter.