4 Law Enforcement  Student Loan Forgiveness Programs to Know About

Law enforcement officers at the local, state, tribal and federal level commit to serving in capacities that most of the public will never fully comprehend. Considering the risk and trauma that most officers encounter, student loans shouldn’t be a factor to worry about, but it’s often high on the list. Fortunately, there are several routes to law enforcement student loan forgiveness.

Many officers earn degrees before joining the force or pursue higher education to advance their career. According to a National Police Foundation study, more than half of sworn officers in the country have at least a two-year degree. Roughly 30% hold a bachelor’s degree and 5% have a graduate-level degree.

For officers who have accrued a large amount of student loans, managing that debt can be challenging on a public servant’s salary. Many turn to working extra jobs or regularly working overtime to make ends meet, which compounds the physical, mental and emotional stress officers experience during normal hours.

Here’s some of the best ways to benefit from law enforcement student loan forgiveness.

4 Law enforcement student loan forgiveness programs

Student loan forgiveness for police officers and other law enforcement personnel aren’t necessarily unique to the profession. But, depending on your employer and your student loan type, you might qualify to have your debt wiped away.

1. Public Service Loan Forgiveness: Tax-free forgiveness

Most law enforcement personnel work for a government entity, meaning they are a prime candidate for the Public Service Loan Forgiveness (PSLF) program.

The PSLF program is available to anyone who works in the public sector or for a 501(c)3 nonprofit organization. This includes professionals who work for employers that engage in crime prevention, control or reduction of crime or the enforcement of criminal law.

For example, city police and county sheriff departments qualify, as well as public college campus police. It also includes federal government organizations like the CIA, DEA, FBI, NSA, CBP and ICE.

Basically, if you work for a government agency, you’re golden. Things can get a little more complicated if you work for a nonprofit or other organization that still provides public service.

If you provide law enforcement services for a for-profit organization or private employer, you’ll be boxed out of PSLF benefits. For example, a correctional officer who works at a for-profit prison won’t be eligible. Extra jobs that are contracted through private employers (e.g. providing security at a local business on the weekends) are also ineligible for PSLF.

To qualify for PSLF, you must:

• Work full-time for a PSLF–qualifying employer. There’s some wiggle room for what qualifies as full-time employment. But generally, it’s considered 30 hours or more, and you can combine hours for qualifying part-time gigs.
• Have federal Direct Loans. If your federal direct subsidized and unsubsidized loans don’t currently qualify, you might benefit from a Direct Consolidation Loan.
• Make 120 qualifying student loan payments. These must be full, on-time payments under an income-driven repayment (IDR) plan. There’s also the option to make a lump sum payment for up to 12 months of credit at a time.

If you haven’t previously been eligible for the Public Service Loan Forgiveness program, it’s worth reconsidering. The U.S. Department of Education recently announced a PSLF Waiver opportunity that only lasts until October 21, 2022.

Previously ineligible loans (e.g. Federal Family Education Loans, or “FFEL”), repayment plans, and active-duty deployment deferment or forbearance periods are now on the table — among other repayment scenarios.

This PSLF waiver could provide millions of student loan borrowers with PSLF forgiveness. So, don’t sleep on this opportunity to get law enforcement student loan forgiveness with PSLF.

2. Federal Perkins loan cancellation

The Federal Perkins Loan program ended in 2017. But if you still have lingering Perkins Loans, it’s time to get them canceled.

Law enforcement officers and other first responders can qualify for partial or full loan cancellation.

To be eligible, you must be employed full-time as a law enforcement officer or correctional officer for five years to receive 100% forgiveness of your Perkins loan balance. Otherwise, each year of qualifying service will receive:

• 15% cancellation for the first and second years.
• 20% cancellation for the third and fourth years.
• 30% cancellation for the fifth year.

To apply, contact your school that issued your eligible loans or the school’s Perkins student loan servicer.

3. Forgiveness via income-driven repayment plans

If you don’t qualify for PSLF or Perkins cancellation, IDR forgiveness can be beneficial — especially for law enforcement with large federal student debt amounts.

There are currently four IDR plans to choose from: Revised Pay As You Earn, Pay As You Earn, Income-Based Repayment and Income-Contingent Repayment.

Each qualifying repayment plan’s eligibility requirements and benefits vary. But they all function the same in that your monthly payment will be based on a percentage of your discretionary income (e.g. 10% to 20%). After 20 to 25 years of qualifying payments, any remaining balance is forgiven.

The downside of IDR forgiveness is that it isn’t tax-free, meaning you’ll pay taxes on any forgiven amount when the time comes. That tax bill could come as a shock for many.

However, a provision of the American Rescue Plan waives taxes on student loan forgiveness through 2025. This perk could potentially be extended, but only time will tell. So, prepare for the tax bomb if IDR forgiveness is your overall goal.

4. State or employer loan repayment assistance

More employers and law enforcement departments are exploring student loan repayment assistance programs as part of their overall recruitment and retention strategy. But after the past two years of a pandemic, civil unrest and increasing crime rates, departments may really begin to leverage this incentive to attract more talent. So, be sure to check with your department to see if a student loan repayment program is available.

Additionally, your state may offer its own law enforcement student loan forgiveness program.

For example, Texas currently has the Peace Officer Loan Repayment Assistance Program that provides up to $20,000 in loan forgiveness over a five-year period. However, only relatively new officers (initial appointment must have begun on or after September 1, 2019) may qualify.

More states may turn to this type of program to help boost law enforcement efforts statewide, so do some research on programs in your area.

Get Our Full PSLF Calculator

Other student loan repayment options for law enforcement

My husband serves for a city with one of the highest crime rates in the United States. So, my family understands the risk, sacrifice and emotional toll that comes with serving and protecting your community. Please don’t let student loans add to the stress that you constantly carry.

You have a variety of strategies to make your student loan debt more manageable if loan forgiveness isn’t an option.

• You can refinance your student loans with a private lender to get a lower interest rate and score a cash-back bonus.
• You have the option to lower your federal student loan payment by enrolling in an IDR plan (even if forgiveness isn’t your ultimate goal).
• There are legal ways to lower your adjusted gross income and, in turn, lower your IDR payments even more.
• Your loans might qualify for cancellation under a special circumstance, like school closure or fraud.
• If you have prior military service with a 100% VA disability rating, you can qualify for Total and Permanent Disability Discharge (TPD). If you have a slightly lower rating, this might be worth appealing your rating to hopefully reach 100%. You’ll also access a variety of other financial benefits, so please fight for the rating you deserve if you believe it should be higher.

A lot of law enforcement personnel are on the wrong student loan repayment plans or have the wrong type of loans to qualify for loan forgiveness. Our student debt experts can help you navigate the complicated student loan system to ensure you’re maximizing your finances overall.

We’d also love to help you take advantage of the PSLF Waiver if you have 10 years of service and loan payments under your belt.

In some cases, you might realize that you can cut back on hours or extra jobs that provide you with more family time, while optimizing your student loan payment and other financial strategies. Book a one-hour consultation to receive a custom repayment plan.