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Jan

2025

S&P 500 Companies Helping Clean the Oceans

By Laurel Tincher | invest, Investing | Comments Off

Spurred by concerns about the growth of ocean pollution worldwide, a few S&P 500 companies — among the largest U.S. companies by market cap — are contributing to ocean cleanup endeavors.

While most people know that the ocean is the world’s largest natural resource, covering nearly 70% of the surface of the earth, few understand what it would mean if “the blue economy” failed to thrive. The oceans not only are a vital food source, these vast bodies of water supply ingredients for pharmaceuticals and biofuel, and help absorb most of the world’s CO2.

Yet right now, pollutants ranging from chemicals to plastics are threatening the viability of oceans on every front.

Recognizing that maintaining healthy oceans is a pressing economic issue, corporate leaders are taking steps to help with ocean cleanup.

Key Points

• Oceans cover nearly 70% of the earth’s surface, and provide many of the world’s natural resources, including food and ingredients for medicine and biofuel.

• Scientific studies show that the buildup of pollutants continue to threaten the health of the seas and much of marine life, putting “the blue economy” at greater risk.

• Ocean pollution includes numerous industrial chemicals, such as byproducts from manufacturing and mining, but plastics comprise most of the debris in the oceans today.

• Corporate leaders recognize the potential long-term impact of not taking action to shore up the health of the world’s largest and most valuable natural resource.

• S&P 500 companies are developing technologies and systems that can help manage pollutants and clean up the oceans.

Why Cleaning the Ocean Is Important

Oceans represent an almost unfathomable source of global wealth, and are essential to life on this planet. They contain some 97% of the world’s water (fresh water is about 3% of the global supply), and comprise 99% of the living space on earth.

Understanding the Blue Economy

The seas and oceans also provide immense economic support to countries around the world, providing well over $1 trillion in revenue. Offshore oil and gas enterprises make up 65% of the ocean-based economy.

Other industries that depend on the oceans include:

• Tourism

• Fishing

• Ship building and maintenance

• Marine equipment

• Ports

• Container shipping

While a growing number of investors are increasingly interested in ESG or sustainable investing opportunities, these strategies are still evolving. Companies that are taking a more direct role in ocean cleanup are also needed.

Impact of Industry on the Oceans

Clearly, if the oceans aren’t healthy, it will have a huge impact on human health and economies as well. Yet the current level of ocean pollution is nothing short of alarming.

• Ocean acidification threatens essential coral reef ecosystems around the world, which is impacting biodiversity as well as natural sources of filtration.

• Overfishing is putting both fish populations and vital food supplies at risk of depletion.

• Oil spills and industrial byproducts have a toxic effect on both human and animal populations globally.

• Fertilizer runoff from industrial farming and agriculture ends up in the oceans.

The biggest source of ocean pollution by far comes from plastic. According to the UNESCO Intergovernmental Oceanographic Commission, plastic from bottles, utensils, fishing equipment (rope, nets), among other sources, make up 80% of the plastic debris found in the ocean today. And some 8 to 10 metric tons of plastic are dumped in the ocean each year.

Fortunately, work is being done to clean up and protect the oceans. Large corporations, startups, nonprofits, and governments are participating in the effort. Some companies are working on preventing ocean pollution and others are working to clean up existing pollution.

Which S&P 500 Companies Are Helping Clean Up the Ocean?

Cleaning up the oceans requires effort from multiple angles. Consumer education can help reduce the number of products people buy, and encourage individuals to buy more sustainable products. Green investing opportunities can inspire investors to support sustainable companies.

New materials, manufacturing and waste management processes can increase the percentage of products that get recycled or composted rather than ending up in waterways.

Cleanup projects are also needed to remove the waste and emissions that have already made their way into the oceans. Some of the S&P 500 companies participating in these efforts are included below.

Pollution Treatment

Ocean pollution includes chemicals, trash, oil, and other substances. Additionally, the oceans absorb greenhouse gases emitted from human activities, which leads to ocean warming and acidification.

Warming and acidification result in destruction of coral reefs and ocean ecosystems, and both fertilizer runoff and warming also contribute to other problems like invasive seaweed growth and algae blooms.

• Corporations such as Apple, Alphabet, Disney, Microsoft, and Meta are among the top companies selected by Sustainability Magazine for their efforts to reduce their carbon footprint. Helping reduce the amount of the greenhouse gas CO2 in the atmosphere and oceans may help mitigate global warming and acidification of waterways.

• Pollution and water treatment companies that help prevent ocean pollution through their products and services include American Water Works Company, Ecolab, Pentair plc, Xylem, and IDEX Corporation.

Recycling Products

Other ways that S&P 500 companies help clean the oceans are through the development of recycling and waste management programs and the production of goods that are either made from plastic gathered from the ocean or designed to reduce the use of virgin plastic.

The truth about recycling is that many items made from plastic and other materials can’t be recycled. About ¼ of items consumers place in recycling bins can’t be recycled by the recycling facilities they are taken to.

Only about 9% of the world’s plastic gets recycled. The rest ends up in the natural environment, gets incinerated, or goes to landfills where it produces greenhouse gases such as methane.

Some companies are working on improved recycling methods and developing new materials, products, and packaging that can be recycled or are biodegradable.

If consumers don’t have access to local recycling programs, plastic items they use may still end up in the oceans.

Recommended: Green Bonds Explained

Ongoing Obstacles to Ocean Cleanup

Although the improvements and innovations in the area of ocean pollution management are a step in the right direction, they don’t solve the problem of overconsumption. In some cases, companies that appear to embrace sustainability may be employing greenwashing tactics to convince consumers that their products are eco-friendly when they’re not.

Companies are under increasing internal and external pressure to show strong Environmental, Social, Governance (ESG) metrics and improve their overall sustainability, and recycling and waste production are a big part of that effort.

When evaluating a company’s ESG metrics it’s important to do some research to see if they are really making improvements and progress towards goals, or simply putting out exaggerated or false claims.

💡 Quick Tip: It’s smart to invest in a range of assets so that you’re not overly reliant on any one company or market to do well. For example, by investing in different sectors you can add diversification to your portfolio, which may help mitigate some risk factors over time.

Startup Companies to Watch

In addition to S&P 500 companies, many startups are developing technologies to help clean the oceans. These five startups, highlighted by SustainableReview.com, are forming partnerships and selling their services to S&P 500 companies. Some of these include:

• Algenisis. A California-based company that has developed a durable new plastic substitute from algae.

• AquiPor Technologies. This Seattle-based startup has created a sustainable new type of material that prevents water pollution.

• Heliogen. Based in California, this company has developed an AI-powered thermal solution that supports companies in their decarbonization efforts.

• FuelGems. Offering an additive that helps reduce carbon emissions from traditional fuels like gas, oil, and diesel, this Austin, TX-based company relies on nanotechnology.

The Takeaway

When it comes to sustainability, everything is connected. To clean the oceans and prevent further damage to the world’s biggest natural resource, efforts are needed across the entire global supply chain. In addition to investing in individual stocks of companies working to help clean the oceans, investors can also find index funds and ETFs that include several companies, such as those focused on ESG, waste management, materials, or clean oceans.

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FAQ

What companies dump waste into the ocean?

Although companies may not be directly dumping waste into the ocean, studies have found that the majority of ocean waste is made up of plastic products from companies such as Coca-Cola, PepsiCo, Nestle, Procter & Gamble, and Danone.

Which industry pollutes the ocean most?

In terms of plastic waste, the beverage industry contributes the most to ocean pollution with its plastic bottles that are generally not recycled.

What companies are cleaning up the ocean?

Startups such as The Ocean Cleanup, Seabin project, and Recycling Technologies are working to clean up the ocean.

Photo credit: iStock/Philip Thurston

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Jan

2025

What Is a Nurse Residency Program?

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

A nurse residency program can offer nurses additional training and specialized skill enhancement that can benefit their career.

If you’re a recent nursing program graduate and you’d like to go into a specific nursing specialty, you may want to consider joining a nursing residency program. These programs allow nurses to transition more easily into the job, provide professional development, and help prepare them for the demands of nursing.

Here’s a deeper look at how nurse residency programs work, the pros and cons of these programs, and what to look for in a residency program if you decide it’s the right move for you.

Key Points

• Nurse residency programs support new graduates transitioning into professional nursing roles.

• Programs last up to a year, combining clinical training, specialized skills, and professional growth.

• Goals include enhancing clinical skills, improving patient care, and boosting job satisfaction.

• Participants are paid, though earnings may be lower than entry-level nursing positions.

• Programs generally require a commitment to work at the facility post-completion for at least one year.

What Is a Nurse Residency Program?

A nurse residency program helps nursing graduates transition into the workforce. It typically lasts up to a year and provides nurses with classes and instruction as well as specialized clinical experience. Nurses in nursing residency programs typically get paid, which is important for recent graduates living with student loan debt.

These programs aim to:

• Improve clinical judgment and patient outcomes

• Teach specialized skills

• Reduce errors

• Improve nurses’ job satisfaction and communication

• Reduce stress and job turnover

A nurse residency has two phases: the transition phase and integration phase.

Transition Phase

In the transition phase, which usually lasts one to three months, nurses do online learning. They listen to lectures and read case studies about their nursing specialty. They are also introduced to hospital policies, and learn nursing ethics. During this time, they can attend discussion groups with other nurses and go to instructor-led training sessions.

Integration Phase

After the transition phase is complete, nurses begin the integration phase, where they work regular shifts ranging from eight to 12 hours during the day, night, or a mix of days and nights. This phase can last for several weeks or months, depending on the program. Nurses care for patients, communicate with families, and work with the larger health care team. During the transition phase, nurses work under the supervision of an instructor and program director who provide feedback about their performance.

How Do Nurse Residency Programs Work?

Nursing residency programs are available in 47 states (Hawaii, Wyoming, and Utah do not have these programs), and hundreds of hospitals and health care systems participate.

The programs tend to vary in length, though most programs last six months to one year. They provide specialized training at hospitals or other medical settings. Nurses work in clinical settings with a mentor and other residents, and they also take nursing classes focused on leadership and professional development.

As mentioned, nurses are typically paid while participating in a residency program, which can help them repay their nursing student loans. Nurses are also often contractually required to work at the facility for a specific amount of time after completing residency training.

Pros and Cons of Nurse Residency Programs

Nurse residency programs give recent graduates some distinct advantages, but there are drawbacks as well. Here’s what to know about these programs.

Pros

Nursing residency programs offer several benefits:

• Better patient outcomes: Nurses gain deeper knowledge, confidence, and critical competencies through these programs, which can help them treat patients.

• Job satisfaction: Nurses who participate in these programs report less stress than other nurses, and they are more likely to stay in the nursing field.

• Support system: Specialized training from a team of experienced nurses and instructors can strengthen a nurse’s skillset, especially those going into nursing specialties.

• Financial benefits: Nurses who participate in nurse residency programs are paid. That can be very helpful when you’re budgeting as a new nurse. However, nurse residents typically earn less than nurses who go directly into a nursing job after graduation.

Cons

Nurse residency programs require a significant time commitment. In addition, there are the following downsides to consider:

• Competitive with limited availability: Many programs admit only a small number of nurses, and it can be difficult to secure a spot.

• Constant supervision: Nurses are always under supervision during a nursing residency — more so than if they go straight into a job after graduation.

• Less control: In a nurse residency program, the hospital or program director picks a nurse’s unit, the types of shifts worked, and the length of the shifts. Nurses must attend mandatory training sessions.

• Required service: After completion of the program, nurses must commit to a year or more of service at the health care facility. If they break the contract, they may need to pay back the hospital for the training and education they received.

Recommended: Student Loan Refinancing Guide

What to Expect in a Nurse Residency Program

During the first two weeks of a nurse residency program, nurses undergo orientation and learn about the health care facility’s mission, values, and rules.

They also learn about the equipment they’ll be using and the practices of the hospital or unit they are working in.

By the end of the first month of a nurse residency program, nurses typically begin working shifts of 8 to 12 hours. During this time, under the supervision of instructors, they start taking on patients. Over the next six months, they continue working with patients, develop their patient care strategy, and attend classes to develop their professional skills.

During the final six months of the program, nurses typically receive more autonomy in patient care, finish up their formal coursework, and take a final evaluation and competency test.

What to Look for in a Nurse Residency Program

If you’re interested in a nurse residency program, you’ll want to find one that’s the best fit for you. First, look for an accredited program, which means an accrediting body has deemed that the program meets industry and educational standards. For example, the Commission on Collegiate Nursing Education (CCNE) and American Association of Critical-Care Nurses (AACN) require accredited programs to last at least six months to a year.

In nurse residency programs, the hospital or health care system you work for will control the department you’re in, the work you do, and your specific duties. So be sure to find out about the program’s curriculum; how long it lasts; what areas you might be able to specialize in; information on the instructors, program director and other leadership; and what the culture of the program is like.

Also, consider how a residency program might affect your lifestyle. As a new nurse, you are likely dealing with a number of financial obligations, including student loans you took out to help afford the cost of nursing school. Find out about the pay and benefits of the nurse residency program to make sure you can pay your debts.

Nurses looking to lower their federal monthly student loan payments may want to explore income-driven repayment (IDR) plans. These plans base your payments on your discretionary income and family size.

Under an IDR plan, you may also be able to work toward federal student loan forgiveness, such as the Public Service Forgiveness (PSLF) program for those working in public service jobs for a qualified employer like a government organization or nonprofit.

You might also want to consider the option of student loan refinancing to help manage your student loans. With refinancing, you replace your current loan with a new loan from a private lender. Ideally, the new loan has a lower interest rate and more favorable terms, which you could make your payments easier to meet.

Our student loan refinancing calculator can help you determine if refinancing makes sense for you.

Just be aware that refinancing federal student loans into private loans makes them ineligible for federal benefits like IDR plans and federal forgiveness programs.

Recommended: Refinancing Student Loans to Save Money

Is a Nurse Residency Program Right for Me?

If you are hoping to go into a specific nursing specialty after graduation from nursing school, you may want to apply for a nurse residency program. These programs offer a number of perks, including additional training and learning opportunities, mentorship, and deeper knowledge and hands-on experience. A nurse residency program can also help give you the clinical training you’ll need for your specialty.

However, nurse residency programs can be competitive and difficult to get into. Weigh the pros and cons carefully to make an informed decision.

The Takeaway

For many nursing graduates, a nurse residency program can be beneficial, offering a chance to learn, get on-the-job training, and work with experienced instructors — while getting paid. Nurses who participate in the programs tend to report less stress, and there is less job turnover. Patient outcomes also tend to be improved, and nurses can learn specialized training which can help them go into a specialty field.

But these programs typically accept only a small number of nurses each year, and they generally require at least a year of service afterward. Plus, nurses in these programs tend to earn less than nurses who go directly into a job, which can be an issue for those worried about repaying their nursing school student loans.

Remember, though, that you have options to potentially lower your payments — including income-driven repayment plans and student loan refinancing — which could help make it possible to participate in a residency program that will teach you special skills and help you achieve your career goals.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQs

Do nurse residency programs lead to a full-time job?

Nurse residency programs do usually lead to a full-time job. Nurses are typically contractually required to work for at least a year at the hospital or health care system after completing their residency.

Are nurse residency programs hard to get into?

Nursing residency programs are competitive, and it can be very challenging to get into them. Many programs accept only a small number of nurse residents per year. Having some clinical experience, such as doing clinical rotations in the specialty you’re interested in while you’re still in nursing school, may help you stand out from the crowd.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/FatCamera

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Jan

2025

ITT Tech Loan Forgiveness: Things to Know

By Marcy Lovitch | Debt Payoff, Fresh Out of School, student_loan | Comments Off

Students who attended the now-defunct ITT Tech are entitled to federal student loan forgiveness. If you attended an ITT Tech institution between 2005 and 2016, you should be able to get your federal student loan debt discharged.

Learn the details about what happened at ITT Technical Institute, how it affected more than 200,000 students, and what you need to know about ITT Tech student loan forgiveness if you attended the school during the specified time period.

Key Points

• ITT Tech loan forgiveness cancels federal student loan debt for students who attended ITT Technical Institute between 2005 and 2016, when the school closed its doors.

• The Department of Education discharged $3.9 billion in federal loans for 208,000 ITT student borrowers.

• The forgiveness program applies automatically, without students having to apply for loan discharge.

• The Consumer Financial Protection Bureau forgave hundreds of millions in private student loans to ITT borrowers.

• Students with private loans whose debt was not forgiven can contact their lender to explore their options, find out about any state assistance programs, or consider student loan refinancing.

What Is ITT Tech?

ITT Technical Institute, also known as ITT Tech, was a private, for-profit technical school that had approximately 130 campuses in 38 states. Owned by ITT Educational Services, ITT Tech schools had associate and bachelor’s degree programs in various areas of technology, including software, electrical engineering, and cybersecurity, as well as criminal justice and business management.

The institution, which was founded in 1969, offered students a chance to get their undergraduate degree without going the traditional college route.

Recommended: Why College Is Not for Everyone

What Happened to ITT Tech?

On September 6, 2016, ITT Tech ceased operations, closing all of its campuses. After years of investigations and lawsuits from federal agencies and some state attorneys general, the U.S. Department of Education (DOE) cut off ITT’s federal aid.

According to a report from the Project of Predatory School Lending at Harvard Law School, ITT made false promises to prospective students, such as offering a valuable education, flexible schedule, the ability to easily transfer credits to other schools, and a high likelihood of job placement after graduation. ITT also engaged in unethical, predatory practices, the report found, which included recruiting and taking advantage of low-income students.

Without the billions of dollars ITT Tech had received from federal student loan aid, it could no longer remain open. ITT filed for bankruptcy 10 days after closing its doors.

ITT Tech’s closing left more than 35,000 students in limbo, without a viable path to obtain their degree. And hundreds of thousands of students were on the hook for the federal student loans they had taken out to attend ITT.

Who Will Get Their ITT Tech Loans Forgiven?

On August 16, 2022, the DOE announced the cancellation of all remaining federal student loan debt to students who attended ITT Tech from January 1, 2005 through its September 2016 closure.

According to the latest information, a grand total of $3.9 billion of federal student loan discharges have been given to 208,000 borrowers who attended an ITT Tech school during the time period.

The DOE’s ITT Tech student loan forgiveness only applies to federal loans, not private student loans. However, the Consumer Financial Protection Bureau (CFPB), which investigated ITT and brought a lawsuit against the institution, eventually reached settlements with ITT that forgave hundreds of millions of dollars in private student loan debt.

Students who borrowed private loans to attend the institution and didn’t receive ITT Tech loan forgiveness may want to consider options to make repaying their student loans easier, such as checking whether their state has a program to help students after a college closure, or exploring student loan refinancing. When you refinance student loans, you replace your current loans with a new private loan.

Ideally, the new loan will have a lower interest rate, if you’re eligible, or more favorable terms, in which case refinancing could save you money.

Use SoFi’s student loan refinancing calculator to see if refinancing makes sense for you.

What ITT Tech Student Loan Debt Relief Is Available?

With the federal government’s ITT student loan forgiveness decision, anyone who took out a federal student loan should be eligible to have their debt erased. What’s more, the DOE made ITT Tech loan forgiveness easy by not requiring former students to apply for a borrower defense to repayment discharge. Instead, students who attended ITT Tech automatically had their loans discharged without having to take any action.

In addition, hundreds of thousands of dollars in private student loans were forgiven through the efforts of the CFPB.

If you were a student at an ITT Tech school during the specified time period, and you haven’t had your federal student loan amount waived, the DOE advises you to contact your loan servicer. If you’re not sure who your servicer is, you can find out by logging into your account on StudentAid.gov.

Recommended: Student Loan Refinancing Guide

The Takeaway

The 2016 closure of ITT Tech campuses nationwide left tens of thousands of students with no opportunity to finish earning their degree. It also resulted in hundreds of thousands of students being left with private and federal student loan debt.

The Department of Education has canceled federal loans borrowed by students who attended ITT Tech between 2005 and 2016. And separately, hundreds of millions of dollars in private student loans were forgiven through the efforts of the Consumer Financial Protection Bureau.

If you attended ITT and your federal loans haven’t been forgiven, contact your loan servicer. Those individuals still dealing with private loan debt may want to consider other methods to help manage it. For example, they could speak with their lender about any repayment options the lender might offer given the circumstances, check to see if their state has any programs to help students after a college closure, or explore student loan refinancing to see if they qualify for more favorable rates and terms.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

Photo credit: iStock/T-studios2

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This article is not intended to be legal advice. Please consult an attorney for advice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Jan

2025

Title IV Financial Aid

By Kevin Brouillard | Going to College, Student Loans, student_loan | Comments Off

If you’re going to college or graduate school, there are multiple forms of financial aid you can apply for, including scholarships, grants, and student loans. As you research your options, you might come across the “Title IV” financial aid.

What is Title IV financial aid, and what does it mean for students? Title IV financial aid refers to several federal financial aid programs authorized by the Higher Education Act of 1965.

Here’s what students need to know about Title IV aid, including which financial aid qualifies and the limits on how much you can receive.

Key Points

• Title IV financial aid consists of several financial assistance programs for students, including federal student loans, grants, and work-study programs.

• Eligibility requires attending an accredited institution and, for many types of Title IV aid, demonstrating financial need.

• Applying involves submitting the FAFSA to determine aid types and amounts.

• Types of Title IV aid include Direct Loans, Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and federal work-study.

• Limits on aid vary by type, with specific caps on Pell Grants, FSEOG, and federal loans.

What Is Title IV Aid?

Title IV financial aid refers to several federal student financial assistance programs available to students attending a higher education institution that has Title IV status. Title IV status is granted by the U.S. Department of Education to a range of institutions, including public and private colleges, as well as trade and technical schools.

Title IV aid is intended to help cover the cost of college for students who can’t afford to pay out of pocket. For that reason, most Title IV aid requires that students demonstrate financial need to qualify.

Which Types of Financial Aid Are Considered Title IV Aid?

Wondering what is Title IV financial aid vs. other forms of financial aid? All Title IV aid involves federal programs that are administered by the Department of Education.

To apply for federal Title IV financial aid, students need to submit the Free Application for Federal Student Aid, better known as the FAFSA.

Here’s a list of the types of federal financial aid that are considered Title IV.

Direct Subsidized and Unsubsidized Loans

Nearly 29% of undergraduate students received federal student loans for the 2022-2023 academic year, according to the latest data from the National Center for Education Statistics.

Direct Subsidized Loans and Direct Unsubsidized Loans are two federal student loans offered by the Department of Education to help students pay for higher education, including four-year college, community college, and trade and technical schools.

The amount of financial aid you can get is determined by your school. The amount you can borrow in federal loans is the cost of attendance minus any other financial aid you receive. Like all student loans, these Title IV loans need to be repaid, but there are some key differences between the two loan options.

With a Direct Subsidized Loan, borrowers aren’t responsible for paying interest on the loan while they’re in school, for the six-month grace period after leaving school, and during student loan deferment. These loans are awarded based on a student’s financial need.

In comparison, Direct Unsubsidized Loans are not based on financial need — they are available to all undergraduate and graduate students. However, interest on these loans accrues while students are in school and during the grace period afterward, and that interest is added to the total principal amount of the loan.

Direct PLUS Loans

The Department of Education offers Direct PLUS loans to grad or professional students (referred to as a Grad Plus loan) and parents of dependent undergraduate students (these are known as Parent PLUS loans). A Direct PLUS loan is an unsubsidized loan with a fixed interest rate that can help borrowers cover the full cost of attendance, minus other financial aid, such as grants and scholarships.

Direct PLUS loans have higher interest rates than other types of federal student loans, so it’s generally recommended that students exhaust all their other Direct Loan options before considering this type of Title IV aid.

Federal Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is a type of Title IV aid for students with exceptional financial need. Unlike student loans, grants for college don’t need to be repaid.

Students can be awarded between $100 and $4,000 a year in FSEOG grants. The exact amount depends on the other forms of financial aid received and a school’s availability of funds. Applying early can help increase your chance of accessing funds, but keep in mind that participation in the FSEOG program varies by school.

Federal Work-Study

The federal work-study program is a type of Title IV aid that’s available to students based on their financial need. It allows students to earn money through part-time employment, often related to community service or a student’s field of study.

Work-study jobs may be on or off campus, and schools may help find positions or require that students find, apply, and interview for positions on their own. Students are paid at least the minimum wage in their state, and the amount you earn can’t exceed the federal work-study award.

Pell Grants

As mentioned, grants are a type of financial aid that don’t need to be repaid, making them a desirable form of Title IV federal financial aid.

Pell Grants are awarded based on financial need to students who have not yet earned a bachelor’s degree. Aside from demonstrated financial need, students need to maintain satisfactory academic progress toward their degree to keep Pell Grants.

For those eligible for Pell Grants, the maximum award is $7,395 for the 2024-2025 academic year. The amount is subject to change each year.

Are Scholarships Considered Title IV Aid?

Scholarships can come from a range of sources, and like grants, do not need to be repaid. Scholarships are not considered Title IV Aid. However, both merit- and need-based scholarships often require that students complete the FAFSA to be eligible to apply.

Recommended: Student Loan Refinancing Guide

How Do I Find Out If I Qualify for Title IV Aid?

To recap, Title IV aid is awarded based on financial need, with the exception of Direct Unsubsidized Loans. Students also must meet other eligibility criteria to qualify, including citizenship requirements and being enrolled in or accepted at an accredited higher education institution with Title IV status.

Students need to fill out and submit the FAFSA to determine what Title IV financial aid they qualify for. Pell Grants and FSEOG awards are issued on a first-come, first-served basis, so applying early is recommended. Note that students can list multiple institutions on their FAFSA application if they’re still undecided about what school to attend.

Are There Limits to the Title IV Aid I Can Receive?

Some types of Title IV aid, such as Pell Grants and FSEOG awards, have set limits of $7,395 and $4,000 per year, respectively, for all students.

For federal student loans, the total amount you can borrow depends on your academic year, the type of loan, and your dependency status. If you are a dependent student, you can borrow up to $31,000 in federal loans for your undergraduate studies, with a cap of $23,000 for Direct Subsidized Loans.

The amount of Title IV aid you can receive is also limited by the cost of attendance at your school.

If you don’t receive enough financial aid to pay for school, you may want to consider private student loans to help cover the gap. With private loans, you receive a loan from a private lender, such as a bank, credit union, or online lender. The interest rate and terms you get are based on your credit, and borrowers must pass a credit check to qualify. For college students who typically don’t have enough of a credit history, a cosigner on the loan may be required.

Keep in mind that you could always choose to refinance student loans later on when you have a stronger credit history. Ideally, you may be able to get a lower interest rate or more favorable terms. (Just be aware that if you opt to refinance federal loans, that makes them ineligible for federal benefits such as income-driven repayment plans and student loan forgiveness.)

If you can qualify for better rates and terms, refinancing student loans to save money may make sense for you.

Using a student loan refinancing calculator can help you see what your payments might be.

The Takeaway

Title IV aid refers to several federal assistance programs that are intended to help make higher education more affordable. Many of these programs are based on financial need, and students need to complete the FAFSA to find out what federal financial aid they qualify for.

There are limits to how much students can receive in financial aid, however, and students may consider taking out private student loans to fill any funding gaps. Later on, they might consider student loan refinancing to reduce their payments.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

Photo credit: iStock/fizkes

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q424-020

Jan

2025

Managing Your Public Service Student Loan Forgiveness

By Kim Franke-Folstad | Going to College, Student Loans, student_loan | Comments Off

If you’re employed in the public sector or working for a nonprofit, and you have federal student loans to repay, you may be wondering if you can successfully navigate the Public Service Loan Forgiveness (PSLF) program.

Whether you’re just starting out on the PSLF path, or you’ve been working toward it for a few years and you’re getting closer to qualifying for forgiveness, it’s important to get the different stages of the process right.

Read on for information on how PSLF works, how to check PSLF progress, and ways to manage your progress moving forward.

Key Points

• Only federal Direct loans, including Subsidized, Unsubsidized, and Direct PLUS loans for graduate students, qualify for PSLF.

• Federal Family Education Loans, Parent PLUS, and Perkins loans must be consolidated into a Direct Consolidation Loan to qualify.

• Eligible repayment plans for PSLF include income-driven repayment plans, such as IBR, PAYE, and ICR. The SAVE plan has been blocked in court and is on hold.

• Track your PSLF progress regularly with the PSLF Help Tool. Use it to confirm employer eligibility and payments.

• After 120 qualifying payments, submit the PSLF application form for forgiveness. But continue making payments until you receive PSLF approval.

Understanding PSLF Basics

The Public Service Loan Forgiveness (PSLF) program was created by the Department of Education (DOE) in 2007 to encourage college graduates to consider public service careers.

As an incentive, the program allows individuals who choose to work for the government, nonprofits, and qualifying religious organizations to apply for public service loan forgiveness. That means that after making 120 qualifying monthly loan payments, their remaining federal loan balance may be erased. Those working toward PSLF can use an income-driven repayment (IDR) plan to help lower the amount they owe on their student loans each month.

Another perk of PSLF: The leftover loan balance that’s forgiven isn’t subject to federal income taxes. So if you work in public service and you’re struggling with how to get out of student loan debt, the PSLF program may well be worth considering.

Eligibility Requirements for PSLF

PSLF applicants must meet several requirements to be eligible for forgiveness, including having the right types of loans and being on the right repayment plan.

Qualifying Loan Types

Only loans that are part of the federal Direct loan program, such as federal Direct Subsidized loans and federal Direct Unsubsidized loans are eligible for PSLF. Federal loans that are not Direct loans (such as Federal Family Education Loans (FFEL), Parent Plus loans, and Perkins loans) must be consolidated into a Direct Consolidation Loan to become eligible.

When it comes to undergraduate vs graduate student loans, only graduate loans that are part of the federal Direct program, such as Direct PLUS loans for graduate students, are eligible for PSLF.

Private student loans don’t qualify for federal forgiveness.

If you’re not sure what type of loans you have, log onto the Federal Student Aid (FSA) website StudentAid.gov. Click on the “My Loan Servicers Section” on your dashboard, and view the federal student loans in your name.

If your loans don’t qualify for PSLF, student loan refinancing is another option you may want to consider. When you refinance student loans, you replace your current loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate or more favorable terms, which could help make your payments more manageable. However, it’s important to be aware that refinancing federal loans makes them ineligible for federal benefits such as income-driven repayment and federal forgiveness plans.

Eligible Repayment Plans

To qualify for PSLF, you must make your monthly loan payments under an eligible income-driven repayment (IDR) plan or the standard 10-year-repayment plan. FSA advises using an IDR plan to repay your loans if you are working toward PSLF. Under these plans, your payments are based on your discretionary income and your family size, which can lower your payments.

Currently, the income-driven repayment options for federal Direct loans are the Income Based Repayment (IBR) plan, the Pay As You Earn (PAYE) plan, and the Income Contingent Repayment (ICR) plan. The Saving on a Valuable Education (SAVE) plan has been blocked in court and is on hold.

If you aren’t sure what loan repayment plan you’re on currently, you can check your FSA dashboard.

Qualifying Employment for PSLF

Another requirement for PSLF is that you work full-time — meaning at least 30 hours a week — for a qualifying employer. However, if you work part-time for two qualifying employers and your time averages out to at least 30 hours weekly, you may also be eligible.

Qualifying employers include:

• Government organizations

• 501c3 nonprofit organizations

• Nonprofit organizations that don’t have 501c3 status but whose primary purpose is to provide a qualifying public service

• AmeriCorps or the Peace Corps

• Religious organizations

You can use the Employer Search tool on the StudentAid.gov site to see if your employer qualifies. But you must submit a PSLF employment certification form — online or using a paper form — to confirm an employer’s eligibility status.

Make sure to submit a new employment certification form every time you change jobs to make sure your new employer qualifies. You may even want to do it annually. That way, your own records will remain up to date. And if you’re wondering where to find qualifying payments on your student loans, the number of qualifying PSLF payments you’ve made will be updated every time you file a new form, which can help you stay on top of your progress.

It’s important to note that the 120 monthly PSLF qualifying payments don’t have to be consecutive. For example, if you have a period of employment with a nonqualifying employer, you won’t lose the counts for prior qualifying payments. But you must be employed full-time by a qualifying employer when you apply for forgiveness.

Tracking Your Progress Toward Forgiveness

Managing your PSLF status has gotten a little easier in recent years, thanks to the PSLF Help Tool and other updates to the program.

The PSLF Help Tool helps make the StudentAid.gov site a one-stop shop for just about anything you might need to do while you’re working toward forgiveness, including checking your PSLF progress. You can use the site to:

• Verify your employer’s PSLF eligibility status. As noted, you can do this by using the Employer Search tool. You’ll need your employer’s EIN (employer identification number) to search the database.

• Submit a PSLF form to confirm your employer’s eligibility. You and your employer can use the PSLF Help Tool to digitally sign and submit the form.

• Confirm your PSLF signatures using the Status Tracker. That way you can get credit for qualified PSLF payments. You can also use the site to email your employer a reminder to sign the form. If your employer is unable to digitally sign the form, you can manually upload the signed PDF.

• Check the status of forms you’ve submitted. You can find out if there are any actions you must take to move the process along.

• Review your qualified payment count. Make sure it’s been updated and that all your qualifying payments have been included.

Submitting the PSLF Application

Once you’ve made 120 payments and all other PSLF requirements have been met, you can request forgiveness of your remaining loan balance using the PSLF certification and application form.

You can use the PSLF Help Tool to digitally complete, sign, and submit your form. Or you can download a PDF of the form and manually sign and submit it.

After reviewing your application, the Department of Education will let you know if your request has been approved or denied. In the meantime, the FSA advises that you continue making payments on your loans, just in case there are any problems with your application. (Payments you make after your 120th qualifying payment will be refunded or applied to any other outstanding federal student loan debt you may have.)

Common PSLF Pitfalls and How to Avoid Them

The PSLF process takes years — think of it as a marathon, not a sprint. Here’s how to avoid some common mistakes along the way:

• Don’t assume anything about the program will happen automatically. It’s up to you to make sure that you meet all the PSLF requirements and your paperwork is filed accurately and on time. If you have any questions, you can check the StudentAid.gov site and use the PSLF Help Tool to get the information you need. It may also be useful to set up news alerts for student loan forgiveness news updates so you’re always in the know about changes to the program.

• Make sure your student loans are eligible for forgiveness and that you have the right repayment plan. Only federal Direct loans are eligible for PSLF. FFEL program loans and Federal Perkins loans don’t qualify unless they’ve been consolidated into a Direct Consolidation loan.

• Certify your employment regularly. The employment certification form confirms that your employment is eligible for the PSLF program. It can also help you track how many qualifying payments you’ve made as you work toward the 120-payment threshold. That way, you can avoid any surprises when you apply for forgiveness.

• Don’t make payments if your loan is in deferment or forbearance. You can only make a qualifying monthly loan payment during periods when you have a payment due. If you’re in loan deferment or forbearance (except under specific circumstances), payments are not due. But if you want to make qualifying payments, you can contact your federal student loan servicer to waive the deferment or forbearance.

• Check out your other options. PSLF only makes sense if you have a remaining loan balance to erase after you’ve made 120 qualifying payments. If you aren’t sure whether that timeline makes sense for you, you can use the loan simulator at StudentAid.gov to get a personalized PSLF projection and compare it to other loan payment strategies.

Strategies to Maximize PSLF Benefits

Because student loan forgiveness is evolving and the rules can be complex, it can be challenging to make the most of all the benefits available. Here are two strategies that may help maximize PSLF.

• Lowering income-driven loan payments by saving more for retirement. When you’re on an IDR plan, your monthly payments are based on your discretionary income each year. Contributing more to your employer’s retirement savings plan like a 401(k) could help reduce your taxable income and lower your payment. (You may want to discuss this strategy with a financial or tax professional to be sure it makes sense for you.)

• Using other programs to boost your benefits. You don’t necessarily have to put all your eggs in the PSLF basket. There may be multiple student loan forgiveness programs you can use to help pay off your loans, based on the type of work you do and other factors. You might even be able to combine some of these benefits with PSLF.

The Takeaway

Working toward Public Service Loan Forgiveness can be a slow process, and at times, it may seem like more effort than it’s worth. But the program’s processes have improved over time, and if you qualify and you stick with it, PSLF can provide significant savings on your student debt.
If you don’t qualify for PSLF or you’re looking for other options to help manage your payments, you can explore IDR plans to see if one of them is right for you. You may also want to consider student loan refinancing if it could help you lower your monthly loan payments. Explore the different avenues available to see what works best for your situation.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What types of loans are eligible for PSLF?

Only loans that are part of the federal Direct loan program are eligible for PSLF. Private student loans don’t qualify for federal forgiveness. And federal loans that are not Direct loans, such as Federal Family Education Loan Program loans, Parent Plus loans, Perkins loans, must be consolidated to a Direct Consolidation Loan to become eligible.

How many payments do I need to make before qualifying for forgiveness?

You must make 120 qualifying payments (meaning using an eligible repayment plan such as an income-driven repayment plan and working for a qualifying employer) to successfully apply for Public Service Loan Forgiveness (PSLF).

Can I make lump-sum payments to reach forgiveness faster?

No. Waivers that temporarily allowed borrowers to make a lump-sum payment to reach forgiveness faster have expired.

What happens if I change jobs during the 10-year period?

It’s important to submit a PSLF employment certification form any time you change jobs. That way you can make sure your new employer is eligible.

Are there any tax implications when my loans are forgiven under PSLF?

The amount that’s eventually forgiven under the PSLF program is not subject to federal income taxes. However, you may have to pay state taxes. Check the tax rules in your state or consult a tax professional.

Photo credit: iStock/:Frazao Studio Latino

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOSLR-Q424-024

S&P 500 Companies Helping Clean the Oceans

Why Cleaning the Ocean Is Important

Understanding the Blue Economy

Impact of Industry on the Oceans

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Which S&P 500 Companies Are Helping Clean Up the Ocean?

Pollution Treatment

Recycling Products

Ongoing Obstacles to Ocean Cleanup

Startup Companies to Watch

The Takeaway

FAQ

What companies dump waste into the ocean?

Which industry pollutes the ocean most?

What companies are cleaning up the ocean?

What Is a Nurse Residency Program?

What Is a Nurse Residency Program?

Transition Phase

Integration Phase

How Do Nurse Residency Programs Work?

Pros and Cons of Nurse Residency Programs

Pros

Cons

What to Expect in a Nurse Residency Program

What to Look for in a Nurse Residency Program

Is a Nurse Residency Program Right for Me?

The Takeaway

FAQs

Do nurse residency programs lead to a full-time job?

Are nurse residency programs hard to get into?

ITT Tech Loan Forgiveness: Things to Know

What Is ITT Tech?

What Happened to ITT Tech?

Who Will Get Their ITT Tech Loans Forgiven?

What ITT Tech Student Loan Debt Relief Is Available?

The Takeaway

Title IV Financial Aid

What Is Title IV Aid?

Which Types of Financial Aid Are Considered Title IV Aid?

Direct Subsidized and Unsubsidized Loans

Direct PLUS Loans

Federal Supplemental Educational Opportunity Grants

Federal Work-Study

Pell Grants

Are Scholarships Considered Title IV Aid?

How Do I Find Out If I Qualify for Title IV Aid?

Are There Limits to the Title IV Aid I Can Receive?

The Takeaway

Managing Your Public Service Student Loan Forgiveness

Understanding PSLF Basics

Eligibility Requirements for PSLF

Qualifying Loan Types

Eligible Repayment Plans

Qualifying Employment for PSLF

Tracking Your Progress Toward Forgiveness

Submitting the PSLF Application

Common PSLF Pitfalls and How to Avoid Them

Strategies to Maximize PSLF Benefits

The Takeaway

FAQ

What types of loans are eligible for PSLF?

How many payments do I need to make before qualifying for forgiveness?

Can I make lump-sum payments to reach forgiveness faster?

What happens if I change jobs during the 10-year period?

Are there any tax implications when my loans are forgiven under PSLF?

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