Caveats.
Although I have student loan payments from graduate school in public health, I went to a public university and worked during my two years getting a master’s, and don’t have a six-figure debt like some borrowers. This program isn’t designed for people like me; it benefits those borrowers that have both a high debt and a low income (I only have one of those two.) Additionally, the amount of discharged debt will probably be treated as taxable income, leading to a big tax bill at the end of those ten years. However, the federal program estimates that the ultimate savings for students will exceed the tax liability.
Another caveat is marriage: income based and income contingent repayment use the income of both spouses, so monthly payments can be much higher.
Who Qualifies?
Full-time jobs in government, military service, public safety and law enforcement, public health, public education and child care, social work, public interest legal services, public and school librarians, and other school-based services, and employees of tax exempt 501(c)(3) organizations qualify.
Although ten years is a long time to stay in the same field making a small salary, for those that are destined on working in the public service sector, this is one way they can take their moral capital to the bank.
