If you’re a librarian, you’re used to people coming to you for information and resources.
But when it comes to discharging student loans, you might be the one left with questions. You could be wondering whether loan forgiveness is even legit, for example.
Here are a few paths to student loan forgiveness for librarians.
Student loan forgiveness for librarians: Are you eligible?
If your librarian degree put you in the red financially, you’re not alone. Master’s of science graduates left school with an average $50,400 in debt, according to our 2017 student debt statistics.
Combine that with the fact that the average librarian pulls in an annual salary of $51,155, according to PayScale, and it’s no wonder you might be looking for student loan forgiveness for librarians.
The bad news is that only your federal loans are eligible for forgiveness. You might try other options to deal with private loans, such as talking to your lender and learning about refinancing.
2 ways to achieve loan forgiveness for librarians
The better news is that there are two governmental programs to help get your federal loans forgiven. They work whether you’re a librarian or have one of the other great jobs offering loan forgiveness.
Here are the two programs and how you might qualify for them.
1. Perkins Loan cancellation and discharge
Thanks to the Higher Education Opportunity Act of 2008, librarians were added to a list of eligible professionals for Federal Perkins Loan forgiveness.
Although the Perkins Loan program expired, anyone who took out a Perkins Loan before Sept. 30, 2017, would be eligible. You could have as much as 100 percent of your debt canceled over a four-to-five-year period.
Here’s how the gradual payout would work:
|1||15 percent, plus interest|
|2||15 percent, plus interest|
|3||20 percent, plus interest|
|4||20 percent, plus interest|
|5||30 percent, plus interest|
Achieving total loan forgiveness — that is, erasing 100 percent of your remaining debt, including interest — would take five years through this federal program.
Eligibility: Being a librarian isn’t enough. To qualify, your librarian degree must have been earned at the master’s level. You also have to work for a Title I school or a public library serving Title I schools.
Requirements: Having a year of professional experience under your belt is the first requirement. Your work as a librarian before August 2008 won’t be included for consideration. You must also make timely loan payments as long as you have a balance.
Application: You request loan forgiveness annually, using a form provided by your school (or your school’s servicer). On the form, you’ll be asked to state your job type and include a certification from your employer.
If you’re a newer graduate and short of the professional experience requirement, you could apply for a precancellation deferment. This would halt your monthly payments until you can start claiming forgiveness.
2. Public Service Loan Forgiveness
Established in 2007, the Public Service Loan Forgiveness (PSLF) program started accepting applications in 2017. This is because you must make timely payments on your Direct Loans for 10 years (or 120 months) to apply to have your remaining balance wiped away.
You must also have made those payments under a qualifying income-driven repayment plan, which could be:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
You wouldn’t benefit from PSLF using the standard repayment plan you were assigned after leaving school. That’s because the standard plan calls for your loans to be repaid in 10 years, which would leave a zero balance by the time you’d be eligible for forgiveness.
Income-driven repayment plans, on the other hand, allow you to make smaller payments over a longer period. They would cost you additional interest, unless you qualify for PSLF and avoid having to pay off the balance.
Although PSLF might not last forever, you remain eligible to participate even if you’re a current borrower. Here’s what else to know about the finer details of this type of student loan forgiveness for librarians.
Eligibility: Beyond being a librarian (or archivist), you must be working full time for a public school, a nonprofit private school, or a public or nonprofit organization. You can verify your eligibility by filling out the PSLF employment certification form.
Requirements: Only Direct Loans are eligible for PSLF. You could opt to group your other federal loans into a Direct Consolidation Loan. But be advised that you would reset the clock on your 120 monthly payments going forward.
All payments must be made during your tenure as a librarian. You must also maintain your employment while applying for and accepting loan forgiveness.
Application: In addition to filing an employment certification form to account for each of your 10 years of experience in the field, you must complete the PSLF application. As it’s being considered, your loans will enter forbearance. You’ll receive your application results in writing.
Other ways to find help paying off your librarian degree
Aside from loan forgiveness for librarians, the federal government also discharges debt in extreme circumstances. Regardless of your profession, your debt could be wiped away for one of these reasons:
- Your school closed before you could complete your degree.
- You enter bankruptcy, and the court rules you shouldn’t have to pay off your loans, which is rare.
- You suffer from a total and permanent disability.
You could also explore loan forgiveness for librarians offered by your state. Many programs catering to educators are specific to teachers, but there are exceptions. The Educators for Maine Program, for example, offers forgiveness to librarian-media specialists working in the state. It includes a year of forgiveness for each year of service.
Research your state’s offerings via our list of over 120 loan repayment assistance programs. If your state’s program is unclear about its eligibility requirements for school employees, for example, don’t leave the stone unturned. Ask if you might be eligible to receive help paying off your librarian degree.
Be just as inquisitive about your federal loans. If you have Perkins Loans or Direct Loans and are looking into forgiveness, you could be in luck. But the government’s requirements for wiping away some or all of your debt can be stiff. They can also take years to qualify for.
Still, if you start today, you’ll be that much closer to ending your debt and getting back to the books.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.46% – 6.97%1||Undergrad & Graduate|
|2.57% – 8.44%4||Undergrad & Graduate|
|3.05% – 6.47%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|