Seeking student loan forgiveness for firefighters? People working in certain public service jobs may be eligible for student loan forgiveness, including full-time firefighters. 

Student loan payments are a huge financial burden for many people working in public service. The suspension of payment and interest accrual on student loans guaranteed by the federal government offered many firefighters relief from their student loan payments, but payments are set to resume at the end of January 2022.1

Here's what full-time firefighters with student loan debt need to know about how to get their loans forgiven. 

Student Loan Forgiveness for Full-Time Firefighters: Where to Start

Log into the Federal Student Aid (FSA) site and find out what types of federal loans you have. Note their monthly payments, interest rates and balances. 

A loan payment calculator can help you figure out how refinancing or consolidating your loans may help reduce your payments or reduce the number of years you have left on your loans. 

Full-time firefighters may have several options for student loan forgiveness, depending on the type of student loans they have. Not every firefighter will qualify for student loan forgiveness.

Federal Perkins Loans Forgiveness for Firefighters

Until 2017, individual schools and colleges could choose to distribute Perkins Loans. If you have an outstanding balance on a Perkins Loan, you may be able to get the balance forgiven over the course of five years, provided you meet certain criteria as a firefighter. 

Full-time firefighters can apply for Perkins Loan forgiveness by contacting the school that issued the loan. The financial aid office or billing office should be able to provide the necessary paperwork. 

The college will process your completed application. You must provide proof that you work for a qualifying employer as a full-time firefighter to be eligible for Perkins Loan forgiveness. 

If approved, you'll get your Perkins Loan balance, plus the interest on the loan, forgiven in five stages, provided you remain employed as a full-time firefighter. 

• 15% of the loan balance canceled during year one

• 15% of the loan balance canceled during year two

• 20% of the loan balance canceled during year three

• 20% of the loan balance canceled during year four

• 30% of the loan balance canceled during year five

While enrolled in the Perkins Loan forgiveness program, you don't have to make monthly loan payments. If you stop working for a qualified employer as a full-time firefighter, loan payments will resume immediately.² 

Firefighter Student Loan Forgiveness for Direct Federal Student Loans

Employees of government agencies working in public service can apply for Public Service Loan Forgiveness (PSLF) after making 120 (10 years' worth) of student loan payments. Missing even one payment by more than 15 days could disqualify you from the program. Firefighters who apply for PSLF must be employed by a qualifying government agency for the entire 10 years (or 120 payments) to be eligible for loan forgiveness. 

To get started, make sure your loans are Direct Federal loans. PSLF only works for Direct loans; not private or other types of federal loans. Participants in the program must be on an income-driven repayment program until they make 120 on-time student loan payments. 

PSLF has a lengthy list of requirements, and many applicants who believed they met the criteria for student loan forgiveness have received letters of denial when they applied. Only 2% of PSFL applicants were approved between November 9, 2020, and April 30, 2021. Between 2017 and 2020, only 1% of all PSLF applicants received loan forgiveness through the program. Currently, there is a huge backlog of applicants. Even if you believe you qualify, it could take six months or longer to get your application processed.³ 

Is PSLF Also a First Responder Loan Forgiveness Program?

Yes, firefighters, correctional officers, police officers, first responders and paramedics can all apply for loan forgiveness if they meet the criteria set forth by the PSLF program. There may be additional student loan forgiveness options for first responders as well.

Income-Driven Repayment Plan and Firefighter Loan Forgiveness

Firefighters who don't have the right types of student loans to participate in federal Perkins Loan forgiveness and aren't interested in trying to get loan forgiveness through PSLF, may find that an income-driven repayment plan helps reduce student loan payments so they more easily fit into a budget. 

With an income-driven repayment plan, you make regular payments based on your income and family size for 20 or 25 years. Then, the federal government forgives the balance left on your student loans. The following income-driven repayment plans may be eligible for forgiveness: 

• Income-based repayment (IBR)

• Pay As You Earn (PAYE)

•  Income-Contingent Repayment (ICR)

•  Revised Pay As You Earn (RPAYE)

The downside of income-based repayment loan forgiveness programs is that the amount of money forgiven at the end of the payment term counts as income for tax purposes. If your loan payment isn't enough to cover accruing interest on the loan, you could be left with a final balance larger than the original loan amount. Plus, you'll have a huge tax bill to deal with, even after making 20 or 25 years' worth of student loan payments. 

Depending on the tax rate and your tax bracket at the time of your last payment, your savings could take a big hit as you try to pay off the amount of money you owe the IRS. 

Currently, taxation of all forgiven student loans is suspended under the stimulus bill. That tax relief expires January 1, 2026.⁴ 

Will the Government Forgive Student Loan Debt for Firefighters?

There are rumors that the government may wipe out student debt in certain amounts for everyone, or that they may forgive student loans for people who attended certain schools or provide certain services.

The CARES ACT froze collections, interest accrual and monthly payments on student loan debt for everyone, but only until the end of January 2022. Whether that suspension will be extended remains to be seen. 

Private loans and student loans not guaranteed by the federal government weren't included in the CARES ACT suspension. If the government forgives student loans in the future, they may limit the relief to federally guaranteed loans.⁵ 

Firefighters May Be Able to Consolidate Student Loans 

Firefighters and first responders with Family Federal Education Loans (FFEL) and Perkins Loans may be able to convert their student loans into a Direct Loan. Direct Loans may be more likely to be included in future student loan forgiveness initiatives. 

To learn more about your options for consolidating student loans into a Direct loan, log in to your HSLDS.ed.gov account to see a list of your loan types. You can consolidate loans held by different lenders into a single loan to streamline the process of making payments.⁶ 

Sign into your studentaid.gov account and complete the Federal Direct Consolidation Loan Application if you want to consolidate your loans. Simply choose a loan service and request that your loans be consolidated.

Refinance Private Student Loans

If you have privately-held student loan debt, you may be able to refinance it with another lender to get a lower interest rate and smaller monthly payments. Be cautious about extending your loan term to get lower payments, however. Longer loan terms could mean you'll pay more interest over time. 

Evaluate the total amount of money you'll pay over the entire life of the loan, and use your current and prospective lenders' APRs to compare the loan terms side-by-side. 

While your credit rating doesn't matter when you take out a federally-backed student loan or consolidate federal student loans, you'll need a decent credit score to qualify to refinance a private student loan with a new lender. 

Borrowers with good credit get lower interest rates and better loan terms. You'll also need a solid payment history and a record of stable employment to qualify for student loan refinance through a private lender. 

If you refinance a federally-held student loan with a private lender, you won't be eligible for the student loan interest tax deduction. If you count on this tax break, consider how losing this perk may affect your financial future.⁷ 

Your Employer May Offer Help With Student Loans

Firefighters, EMTs and paramedics may have access to resources through their employer to help them reduce student loan debt or manage student loan payments. 

A temporary relief measure offered to employers gives tax breaks to help employees pay down student loan debt. Until 2025, employers can contribute up to $5,250 per year toward student loan debt per employee for both federal student loans and private loans.⁸ 

If you are struggling with student loan debt, talk to someone in your human resources office about how you can get relief through one of their programs. 

There aren't a ton of options for student loan forgiveness, even if you are a full-time firefighter. If you want to reduce or eliminate your student loan debt, research the types and amounts of your current student loans. If you decide to pursue forgiveness for student loans, make sure you understand the terms of the program before moving forward.

¹ Federal Student Aid, 2021, Coronavirus Info for Students, Borrowers, and Parents, Accessed September 1, 2021, [StudentAid.gov]
² Legal Information Institute, 2009, 34 CFR § 674.57 - Cancellation for law enforcement or corrections officer service - Federal Perkins, NDSL, and Defense loans., Accessed September 1, 2021, [Law.Cornell.edu]
³ Adam S. Minsky, 2021, New Data Shows Most Who Apply To This Student Loan Forgiveness Program Are Denied, Accessed September 1, 2021, [Forbes.com]
⁴ Adam S. Minsky, 2021, Congress Makes Big Change To Income-Based Repayment: What Student Loan Borrowers Should Know, Accessed September 1, 2021, [Forbes.com]
⁵ Adam S. Minsky, 2021, Biden’s Student Loan Forgiveness Review: Should You Take Steps Now To Get Student Debt Cancelled Later?, Accessed September 1, 2021, [Forbes.com]
⁶ Columbus School of Law, 2021, Direct Loan Consolidation Process, Accessed September 1, 2021, [Law.edu]
⁷ Consumer Financial Protection Bureau, 2021, Should I refinance my private student loan into one with a lower rate?, Accessed September 3, 2021, [ConsumerFinance.gov]
⁸ Dave Strausfeld J.D., 2020, New tax incentive for employers to help with student loans, Accessed September 3, 2021, [Future.AICPA.org]