Student Loan Forgiveness Guide

Student loan forgiveness is available to several full-time employees who are working in various fields. Some forgiveness or discharge programs work based on the type of loans that an individual has, such as the Perkins loan program discussed later in this guide. If you’re struggling to keep up with student loan payments and you want to find a better way, this guide is for you.

Read on to learn all that you need to know about what student loan forgiveness programs entail, who qualifies (or how to qualify), and more. There are different types of programs available, including some based on career, circumstances, and other factors. In the event of death, many lenders also provide the family with full forgiveness on loans of the deceased.

What Are Student Loan Forgiveness Programs?

Forgiveness is a process by which federal student loans can be canceled, forgiven, or discharged. That means that the student no longer has to repay the loans or at least the portion that was forgiven.

· Forgiveness/Cancellation: When someone no longer has to make loan payments because of their job (such as in the case of teachers or public officials).

·  Discharge: When loans are forgiven or discharged, due to circumstances like a closed school, disability, bankruptcy, etc.

How much forgiveness you can get depends on your background, profession, and other factors. For example, there are programs in place for teachers, public service officials, etc. You can find more information about these programs on the U.S. Department of Education’s website on Federal Student Aid.

Who Is Eligible for Forgiveness?

There are several programs available to offer opportunities for all kinds of people to receive student loan forgiveness, cancellation, or discharge. In addition to the link above, here is some more information on how that works.

·  The Public Service Loan Forgiveness (PSLF) program allows forgiveness on loans held by government employees and nonprofit workers. Once the employee has worked full-time for a qualifying employer and made 120 monthly payments on their qualified repayment plan, they can apply for forgiveness from this program.

·  The Teacher Loan Forgiveness program offers a flat-rate $17,500 forgiveness for student loans for eligible teachers. To qualify, teachers must teach full-time in low-income elementary schools or other low-income schools for five consecutive years.

·  Perkins loans holders may be able to use their employment or volunteer service to have Perkins student loans canceled or discharged. This includes teachers and others.

·  Permanent disability discharge is available to anyone who has a total or permanent disability. If a person becomes disabled after receiving their education, they can qualify for forgiveness based on this program, in many cases.

·  Closed school discharge is offered to students who are attending a school that closes during their attendance or shortly thereafter.

· Parent PLUS loans can be discharged if:

o A parent dies

o A student doesn’t finish school because of a closure

o A loan is falsely certified

o It’s related to a case of identity theft

o The child passes away

o   The school did not pay appropriate refunds

There are also forgiveness and discharge programs available for bankruptcy, false certification, and other repayment issues. It’s best to do your research to find out how you can get your student loans forgiven in the best way, and for the maximum amount.

How Can I Get Started?

Check out the Federal Student Aid website to learn more about your options for student loan forgiveness. Then, contact the loan servicer or the school regarding forgiveness programs. They will tell you how to apply and assist you with the following steps. If you put in a little work, it’s safe to say that you can probably get a decent amount of your student loan debt forgiven.