Many college students take out student loans to help defray the high cost of tuition, student fees, housing and books. Unlike scholarships and grants, student loans must be repaid with interest. This can create financial hardship for recent college graduates trying to pay rent, car insurance and other living expenses on salaries from entry-level jobs. If you're wondering whether a government job can repay your student loans, the short answer is yes. Learn more about government jobs offering student loan repayment to determine whether this is the right choice for you.
Purpose
The federal government has repaid more than $132 million in student loans for new hires and current employees since 2002, according to Federal Jobs.net. Government agencies offer repayment program incentives to attract applicants for hard-to-fill jobs. The federal government usually links student loan repayment amounts with years of service completed. This makes such programs a way to retain workers in those jobs to cut down on time and money spent in hiring processes. Not all government agencies participate in student loan repayment programs, and programs typically work to recruit highly qualified students -- so expect a competitive job market.
Amounts
Repayment plans vary depending on the job type and hours worked. In some cases, certain government jobs can reward students with as much as $10,000 per calendar year in student loan payments, with a maximum cap set at $60,000, according to Federal Jobs.net.The government may make payments spread throughout the calendar year rather than making a lump sum payment, according to the U.S. Office of Personnel Management.
Conditions
To accept government repayment of student loans, students must sign a contract committing to working three years in a specified job position. Breaking contracts can result in a loss of funds used toward student loan repayment, or a requirement to repay all benefits received. Not all loans qualify for student loan repayment through the government. Examples of eligible government loans include subsidized Federal Stafford loans, unsubsidized Federal Stafford loans, Federal PLUS loans and Federal Consolidation loans.
Types
Examples of jobs that may offer student loan repayment include civil service government jobs, such as the Peace Corps. Some teachers, including educators working in less-desirable inner-city or rural schools, also qualify for student loan repayment through the government. Individuals who join the military may be eligible for government student loan repayment.
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