Who Gets Student Loan Forgiveness?

Get the answers you need about the Student Loan Forgiveness Program. Find out who is eligible and how to apply.

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Student Loan Forgiveness

Student loan forgiveness is a process by which you can have your student loans forgiven. There are several ways to qualify for student loan forgiveness, but the most common way is through public service. If you work in a public service job, you may be eligible for student loan forgiveness after 10 years of making payments on your loans.

What is student loan forgiveness?

Student loan forgiveness is when you are no longer required to repay some or all of your student loans. There are several ways this can happen:

-If you work for a government or non-profit organization, you may be eligible for the Public Service Loan Forgiveness Program.
-If you are unable to repay your loans because of a disability, you may be eligible for loan discharge through the Total and Permanent Disability Discharge program.
-If your school closes while you are enrolled, you may be eligible for loan discharge through the Closed School Loan Discharge program.
-If you believe you have been the victim of certain types of fraud or other illegal activities related to your loan, you may be eligible for loan discharge through the Borrower Defense to Repayment program.
-There are other reasons why you may be eligible for student loan forgiveness, such as repayment plans that forgive remaining debt after a certain number of payments, or conditions related to your job.

It’s important to remember that student loan forgiveness is not automatic – in most cases, you will need to apply for it and meet specific requirements. And even if you do qualify, there may be tax consequences associated with having your debt forgiven. So be sure to do your research and understand all the potential implications before counting on student loan forgiveness as part of your repayment strategy.

Who is eligible for student loan forgiveness?

The Public Service Loan Forgiveness Program is available to government employees and nonprofit employees. To qualify, you must have made 120 qualifying monthly payments on your Direct Loans after Oct. 1, 2007.

Meanwhile, the Teacher Loan Forgiveness Program is available to teachers who have taught full-time for five complete and consecutive academic years in a low-income elementary school, secondary school or educational service agency. Teachers may also qualify if they’ve taught special education, taught mathematics or science to low-income students, or served as a highly qualified teacher in a subject area that has been identified as having a shortage of teachers.

There are also several loan repayment assistance programs (LRAPs) that are specifically designed for lawyers. To be eligible for LRAPs, you usually have to work at a qualified non-profit organization. Some LRAPs will forgive all of your student debt if you work for a certain number of years, while other LRAPs will make monthly payments on your behalf.

Student Loan Forgiveness Programs

Many people who have student loans are looking for ways to get student loan forgiveness. There are several student loan forgiveness programs available, but not everyone qualifies for them. In this article, we’ll discuss who gets student loan forgiveness and how you can apply for it.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness Program (PSLF) is a federal program that forgiveness for borrowers who work in public service. To qualify, you must make 120 qualifying monthly payments while working full-time for a qualifying employer. Qualifying payments are made after October 1, 2007, under a qualifying repayment plan, and while employed full-time by a qualifying employer. You can learn more about this program on the Federal Student Aid website or by contacting your loan servicer.

The following employers typically qualify:
-Government organizations at any level (federal, state, local, or tribal)
-Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
-Other types of not-for-profit organizations that provide certain public services
-AmeriCorps or Peace Corps

Teacher Loan Forgiveness

The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans.

Perkins Loan Cancellation and Discharge

The Perkins Loan Cancellation and Discharge program offers forgiveness to certain groups of people who have made significant contributions to our country. If you are a teacher, nurse, or public servant, you may be eligible for this program.

To qualify, you must have been employed in your qualifying profession for at least five years. You must also be working full-time in a low-income school or organization. If you are interested in this program, you should contact your loan servicer to see if you qualify.

Other Student Loan Forgiveness Options

Student loan forgiveness might seem like a pipe dream, but there are actually several options out there for those who qualify. You might be able to get your loans forgiven through public service, teaching, or even through income-driven repayment plans. Let’s take a look at some of these options in more detail.

Loan Repayment Assistance Programs

Loan Repayment Assistance Programs (LRAPs) are programs that help make student loan payments more affordable for public service employees. Typically, these programs will forgive a portion of your student loans if you agree to work full-time in an eligible public service job for a certain period of time.

LRAPs can be need-based or work-based. Need-based LRAPs are typically available to legal aid attorneys and public defenders who earn low incomes. Work-based LRAPs are typically available to teachers, doctors, nurses, and other public service employees.

Some LRAPs will forgive your entire student loan balance if you meet the program’s requirements. Other LRAPs will make monthly payments on your behalf for a certain period of time. After that, you’ll be responsible for repaying the remaining balance of your student loans.

To find out if you’re eligible for an LRAP, contact your state’s higher education agency or the agency that administers the program.

Income-Driven Repayment Plans

There are four different income-driven repayment plans available, each with its own terms and conditions.

-The Income-Based Repayment Plan (IBR) is available to borrowers with a significant financial hardship. Your monthly payments are capped at 15% of your discretionary income, and any remaining debt is forgiven after 25 years of repayment.
-The Pay As You Earn Repayment Plan (PAYE) is similar to IBR, but your monthly payments are capped at 10% of your discretionary income and any remaining debt is forgiven after 20 years of repayment.
-The Revised Pay As You Earn Repayment Plan (REPAYE) was created in 2015 and is available to all federal student loan borrowers regardless of when they took out their loans. Your monthly payments are capped at 10% of your discretionary income, and any remaining debt is forgiven after 20 or 25 years, depending on whether you took out undergraduate or graduate loans.
-The Income Contingent Repayment Plan (ICR) is available to all federal student loan borrowers regardless of when they took out their loans. Your monthly payments are capped at the lesser of 20% of your discretionary income or the amount you would pay on a fixed 12-year repayment plan adjusted according to your income. Any remaining debt is forgiven after 25 years of repayment.

If you’re struggling to make your monthly student loan payments, an income-driven repayment plan could help make them more affordable. You’ll need to submit an application to your loan servicer to see if you qualify for one of these repayment plans.

Student Loan Refinancing

If you’re not able to qualify for any of the above programs, you may want to consider student loan refinancing. Student loan refinancing is when you get a new loan with a lower interest rate to replace your current student loans. This can help you save money on interest and potentially lower your monthly payments. Student loan refinancing is available through private lenders, so it’s important to compare rates and terms before you choose a lender.