Public Service Loan Forgiveness (Student Loans)

calhoonjugganaut

calhoonjugganaut

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Just wondering if anyone knows if Amtrak would fall under the PSLF. I will be transitioning out of the military in September and I haven't been able to find a solid answer on this. I have 6 yrs left before my loans can be forgiven and I've called myfedloans and the representative I talked to said that a job with them should be covered, but "should be" isn't very definitive. Since then I emailed them earlier this week and never got a response. Amtrak is a federal agency that is for profit, I guess. Kind of like the United States Postal Service. I'm just trying to find some state or federal employment that will allow me to use the PSLF and I'm just running into a dead end here. I can get another job with the state of NC, but the Amtrak jobs pay about 20k more a year. If anyone can help it would be much appreciated. Thanks.
 
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Threelions

Threelions

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calhoonjugganaut said:
Just wondering if anyone knows if Amtrak would fall under the PSLF. I will be transitioning out of the military in September and I haven't been able to find a solid answer on this. I have 6 yrs left before my loans can be forgiven and I've called myfedloans and the representative I talked to said that a job with them should be covered, but "should be" isn't very definitive. Since then I emailed them earlier this week and never got a response. Amtrak is a federal agency that is for profit, I guess. Kind of like the United States Postal Service. I'm just trying to find some state or federal employment that will allow me to use the PSLF and I'm just running into a dead end here. I can get another job with the state of NC, but the Amtrak jobs pay about 20k more a year. If anyone can help it would be much appreciated. Thanks.
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What is qualifying employment?
Qualifying employment for the PSLF Program is not about the specific job that you do for your employer. Rather, it is about who your employer is. Employment with the following types of organizations qualifies for PSLF:

  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program.

The following types of employers do not qualify for PSLF:

  • Labor unions
  • Partisan political organizations
  • For-profit organizations (this includes for-profit government contractors)
  • Not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code and that do not provide a qualifying public service as their primary function
 
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Threelions

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I will also say in my 10 years of Gov't service that I've only known 2 people who have had their loans forgiven. Definitely worth it if can you can stretch it to that goal!
 
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Palum

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Amtrak is a for profit corporation so it wouldn't count, even if it gets government funding and low interest loans and the government owns all the preferred shares.

Also since PSLF takes 10 years, that's 200K compared to your NC job. Are your loans that much?

I would never advise anyone to go into a field for PSLF or similar forgiveness programs, it almost never works out. Late payments, deferments, loss of jobs, better offers people can't afford to leave behind for loan forgiveness 6 years later because they have obligations now, etc. It basically works for people who go into specific careers like FBI or something that they are committed to. All that but if you do too well so your payments go up because of additional earnings (you basically can only even take PSLF if you're not earning enough to cover a normal 10 year repayment) you lose the benefit anyway because you end up paying the loans off anyway.
 
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I should mention there is apparently significant litigation regarding the PSLF (not to mention Amtrak due to the sheer amount of railroad regulations and back room deals). I would not be so sure it won't get completely rewritten within 10 years before you could even take advantage of it.
 
Palum

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What are your monthly payments and how much are you accruing in interest each month? Keep in mind you can only 'forgive' what you haven't paid back yet. If you're going to be making say 60-80K/yr, with a family size of 1 you are looking at probably 350-700/mo payments depending if you are on IBR (15%) or qualify for REPAYE program (10%).

So doing the math if you have really low interest rate loans and a decent income, you are going to be chipping away at that 100k for another 6 years. So if it ends up being say only 60K at the end that you can get forgiven, and you took a job making 20k/yr less - you just tossed away 60K which isn't insignificant. Plus, if you're going to be unhappy and bug out of say a NC state job so you lose your retirement that's a double whammy.

I really recommend focusing on career aspirations and resume building. As an example, I've seen a lot of situations where teachers go into 'under-performing'' public schools specifically to qualify them for teacher loan forgiveness and that program is structured so you get the 'big' pay-out on year 5. Many of them don't last. They're paid 35K starting and then by year 2-3 get an opportunity to be an admin assistant/HR/etc. or something dumb for 5K/yr more, have a kid, move to a nicer school, etc. and get screwed because they wasted 2-3 years at a shithole employer chasing a few grand in forgiveness. Or situations where cops get injured at year 7, out of work on partial disability for a while... take any private sector job to get by and pay for their family, boom there goes the PSLF plans.

Best of luck whatever you decide, just do the math out and evaluate the risks of staying in qualified positions for that many years.
 
calhoonjugganaut

calhoonjugganaut

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Lol, ok Gravel. I'm not a Lannister, but will do.

Being in the military I have literally had $0 payments for the past 4 years and that has counted towards my PSLF. I don't know how or why they count the loans that way but they do. I know once I get a gov job it can't be more than 10 or 15% of what I make, but just trying to do the most financially sound thing possible.
 
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calhoonjugganaut said:
Lol, ok Gravel. I'm not a Lannister, but will do.

Being in the military I have literally had $0 payments for the past 4 years and that has counted towards my PSLF. I don't know how or why they count the loans that way but they do. I know once I get a gov job it can't be more than 10 or 15% of what I make, but just trying to do the most financially sound thing possible.
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Sorry bro, military deferments don't count as payments for the 120. You'll be starting fresh.
 
Harfle

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calhoonjugganaut said:
Just wondering if anyone knows if Amtrak would fall under the PSLF. I will be transitioning out of the military in September and I haven't been able to find a solid answer on this. I have 6 yrs left before my loans can be forgiven and I've called myfedloans and the representative I talked to said that a job with them should be covered, but "should be" isn't very definitive. Since then I emailed them earlier this week and never got a response. Amtrak is a federal agency that is for profit, I guess. Kind of like the United States Postal Service. I'm just trying to find some state or federal employment that will allow me to use the PSLF and I'm just running into a dead end here. I can get another job with the state of NC, but the Amtrak jobs pay about 20k more a year. If anyone can help it would be much appreciated. Thanks.
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First of all you said transitioning out of the military and have loans. Wtf the did you do I am going for my phd right now and haven't paid a fucking dime thanks military!
 
Jysin

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Harfle said:
First of all you said transitioning out of the military and have loans. Wtf the did you do I am going for my phd right now and haven't paid a fucking dime thanks military!
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Post 9/11 GI Bill is still limited to 3 yrs of school, no? Or you are still active duty and using the 100% TA?

I really wish the GI Bill wasn't limited to 15 yrs after end of service. I am looking to make a career change and while I have made bank as a contractor the last 15 years, I never used my GI Bill as I have worked overseas my entire time. Now I am looking at going back stateside and footing the college bill 100% myself. Sucks!!
 
Harfle

Harfle

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Jysin said:
Post 9/11 GI Bill is still limited to 3 yrs of school, no? Or you are still active duty and using the 100% TA?

I really wish the GI Bill wasn't limited to 15 yrs after end of service. I am looking to make a career change and while I have made bank as a contractor the last 15 years, I never used my GI Bill as I have worked overseas my entire time. Now I am looking at going back stateside and footing the college bill 100% myself. Sucks!!
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Post 9-11 gi bill is limited to 36 months (4 years of school), summer months lol. Work with the va bro. All I can say.
 
Jysin

Jysin

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Harfle said:
Work with the va bro. All I can say.
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Is that even a thing? I highly doubt I could just ring up the VA and get them to change the rules for me. Benefit expires after 15 years once you are out of service. Have you heard otherwise?
 
alavaz

alavaz

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You have to be under a qualified re-payment plan for 10 years to qualify (along with the qualified job) and if you deferred or did any kind of interest only / income reduce payments plans none of it will count. Sounds like you have yet to even begin your 10 years of qualifying payments so I wouldn't even worry about it and get the best job that you can.
 
Harfle

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Jysin said:
Is that even a thing? I highly doubt I could just ring up the VA and get them to change the rules for me. Benefit expires after 15 years once you are out of service. Have you heard otherwise?
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They offer more than just the gi bill, VR&E.
 
Jysin

Jysin

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Harfle said:
They offer more than just the gi bill, VR&E.
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Eligibility:
  • Transitioning Servicemembers within six months prior to discharge from active duty
  • Veterans within one year following discharge from active duty
  • Any Servicemember/Veteran currently eligible for a VA education benefit
  • All current VA education beneficiaries

I am 15 years out of active duty and my VA education benefit expired too.
 
calhoonjugganaut

calhoonjugganaut

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I am on an income based repayment plan that I have to recertify every year, so since my income doesn't meet a certain threshold I will have had 48 months towards my PSLF in November of this year. I have also had to recertify my employment each year while on PSLF.

Also, the reason my loans are so high is because I joined the military after I went to college.
 
calhoonjugganaut

calhoonjugganaut

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I was talking about if Amtrak was considered a company that would qualify me to continue getting the PSLF. Turned out it wouldn't work with them.
 
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