Got Debt?
Public Service Loan Forgiveness
One Mission Society (OMS) knows that entering the mission field can be intimidating as you navigate many unknowns. If you begin ministry with student debt looming over your head, it can be even more overwhelming.
Starting a job in the traditional workforce with student debt is daunting enough; adding the need to raise financial support can make starting full-time vocational ministry even scarier.
If you are a student graduating soon or are already in the workforce but hoping to transition into full-time ministry, OMS wants to help in the process. Whatever stage you are in, we can provide beneficial resources as you trust God with your future.
As a 501(c)(3) nonprofit organization, OMS is an eligible employer for the Public Service Loan Forgiveness (PSLF) program. This program allows Federal student loans to be forgiven for individuals who have worked for 10 years or more with a qualifying employer.
What is PSLF?
The PSLF program has been in effect and available for employees of 501(c)(3)s since 2007 but initially did not include employees of Christian organizations. In July 2021, the government amended the PSLF program qualifications to include religious organizations among those qualified to offer their employees student loan forgiveness.
After 10 years of full-time employment at a 501(c)(3) and 120 payments toward federal student loans, the remaining balance of your loans, including interest and principal, will be forgiven. Even if you didn’t make any payments during the COVID forbearance period, these years can still count towards the PSLF program as long as you were employed by a non-profit.
To be eligible for PSLF, you must ...
- Be employed full time for 10 years at a 501(c)(3) nonprofit organization.
- Have federal student loans through the Direct Loan Program.
Steps to apply ...
- Submit the application by December 31 each year.
- Start submitting your annual PSLF forms now.
- Make 120 monthly payments toward your federal student loan while working full time for a qualifying employer.
As an additional employee benefit, OMS allows its missionaries to raise additional funds to help with making the payments that may still be due during the 10-year PSLF program. New OMS missionary candidates who qualify may be authorized to raise additional funds to repay loans for college and seminary education. The additional income received to make payment on student loans is considered taxable compensation. In order to raise additional funds and receive this extra compensation, monthly loan payments must be made to pay off loans that were obtained for key roles with specific degrees. For example, if your degree is in theology or an MBA, OMS could allow you to receive additional funding from your support account as a salary increase. The maximum allowed for this purpose is $1,200 a year or $25,000 total per missionary unit.
Additional information ...
- Private loans do not qualify for forgiveness. The loans must be federal student loans through the Direct Loan Program.
- Consolidation tools are available for ineligible loans.
- It takes less than an hour to apply for PSLF.
- Submit a PSLF application annually and any time you change employers.
- PSLF works with Income-Driven Repayment.
Resources ...
- Schedule a meeting with the OMS dedicated financial planner (Evan Avery) if you’d like to learn more. You can use this link to schedule a meeting directly, at no cost: https://go.oncehub.com/RPAFinancialWellness
- https://www.ecfa.org/Content/Workers-for-Religious-Nonprofits-May-Now-Qualify-for-Public-Service-Loan-Forgiveness
- https://studentaid.gov/articles/become-a-pslf-help-tool-ninja/
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-application
- https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service