Loan Forgiveness for Internships
How it works
- Internship must be after 5/1/13, may be located in RI or out-of-state and may be paid or unpaid.
- Internship(s) can either be one, 3 credit internship or three, 1 credit internships and be on transcript, validated and certified by an institution of higher education.
- The borrower may not use an internship that was required to graduate.
- The student must graduate from their program of study and earn a degree or certificate in order to receive the loan forgiveness.
- Forgiveness will be awarded after graduation.
- Student must apply for loan forgiveness within one year of graduation date from college.
- Internship award may only be applied to one RISLA Student Loan, RISLA Graduate Student Loan, or RISLA Parent Loan.
- For the purpose of this program, internships, independent studies, and practicums which are graduation requirements for specific majors do not qualify for this loan forgiveness program.
- Student must be a Rhode Island resident or attend a RI institution of higher education.
- Internship award is only applicable once per student.
Tax ConsiderationsAt this time, the loan forgiveness is taxable income. A 1099 would be issued for the tax year in which the student becomes eligible.
NOTE: Certain loans may qualify for a loan forgiveness program. The FlexCredit education loan program is a state-based loan that does not qualify for any loan forgiveness programs at this time. It is not a federal student loan. As a non-federal loan, FlexCredit does not qualify for federal forgiveness programs. A complete list of RISLA’s loan forgiveness programs can be found here, and additional information about the different types of federal loan forgiveness programs can be found at studentaid.ed.gov.