Any luck getting student loan forgiveness w/ a for profit benefit corp?
October 16, 2018 9:20 AM Subscribe
I am working for a non-profit that is becoming a for profit, public benefit corporation, servicing other non-profits. Has anyone had any luck with student loan forgiveness and a benefit corp? I recall finding some info that you can still utilize it with a B corp, but now cannot find anything.
This NY Times article might be illuminating.
posted by thegreatfleecircus at 11:42 AM on October 16, 2018 [1 favorite]
posted by thegreatfleecircus at 11:42 AM on October 16, 2018 [1 favorite]
Seems unlikely--the PSLF page on the Federal Student Aid site says the following about what qualifies as PSLF eligible employment:
"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"
So, basically, non-profits can qualify even if they are not tax-exempt, but for-profits do not qualify even if they provide services.
On the bright side, your 120 payments do not need to be continuous, so if you have already been making payments toward PSLF, you will keep those and if you work for another nonprofit in the future, you will start accruing payments again from the point you left off.
The NYT article mostly drove home to me how important it is to get your employer certified and re-certified annually if you are planning on PSLF--and to transfer your loans to a FedLoan servicer, who are the only ones who can really tell you if your payments are qualifiying toward your 120 PSLF payments.
posted by assenav at 12:18 PM on October 16, 2018
"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"
So, basically, non-profits can qualify even if they are not tax-exempt, but for-profits do not qualify even if they provide services.
On the bright side, your 120 payments do not need to be continuous, so if you have already been making payments toward PSLF, you will keep those and if you work for another nonprofit in the future, you will start accruing payments again from the point you left off.
The NYT article mostly drove home to me how important it is to get your employer certified and re-certified annually if you are planning on PSLF--and to transfer your loans to a FedLoan servicer, who are the only ones who can really tell you if your payments are qualifiying toward your 120 PSLF payments.
posted by assenav at 12:18 PM on October 16, 2018
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posted by praemunire at 9:52 AM on October 16, 2018 [1 favorite]