7 Ways You Can Get Student Loan Forgiveness In The United States – Are you struggling to pay off student loans? You may be eligible for student loan forgiveness in the United States. Student loan forgiveness is a program that allows borrowers to have their loans completely or partially forgiven by the government. This can be a great relief for those who are struggling to keep up with their student loan payments. In this blog post, we’ll discuss 7 ways you can get student loan forgiveness in the United States.
1) Public Service Loan Forgiveness
If you work in public service, you may qualify for the Public Service Loan Forgiveness (PSLF) program, one of the most attractive ways to get student loan forgiveness in the United States.
The program eliminates all federal student loan debt remaining after 10 years of payments made while employed in full-time public service roles. To qualify, you must have made at least 120 monthly payments while working full-time for an eligible public service employer.
If you are unsure if your job qualifies, you can review the full list of eligible employers on the Federal Student Aid website. You must also be enrolled in an income-driven repayment plan and make sure all payments are current before submitting a request for loan forgiveness. Once approved, the loan balance is forgiven and no taxes are owed on the forgiven amount.
2) Teacher Loan Forgiveness
One of the ways to get student loan forgiveness in the United States is Teacher Loan Forgiveness. This program allows teachers who have been teaching full-time for five complete and consecutive academic years in a low-income elementary or secondary school, or educational service agency, to have up to $17,500 of their subsidized and/or unsubsidized Federal Direct Loans forgiven.
To qualify for the Teacher Loan Forgiveness Program, you must have been employed as a full-time teacher at a school that serves students from low-income families and must have taught for five complete and consecutive academic years. You must also have met other eligibility criteria. Additionally, the five years of qualifying teaching service do not have to be completed at one school.
In addition, if you are eligible for Teacher Loan Forgiveness, you must complete and submit an Employment Certification for Teacher Loan Forgiveness form to your loan servicer each year that you meet the program’s requirements. You can also choose to apply for Teacher Loan Forgiveness at any time.
If you don’t apply for Teacher Loan Forgiveness until after you complete your qualifying teaching service, then you must submit the Employment Certification for Teacher Loan Forgiveness form within 120 days after the end of those five years of teaching service.
If you are approved for Teacher Loan Forgiveness, your servicer will notify you and may give you an estimated date of when the forgiven amount will be reported to the Internal Revenue Service (IRS).
Whether you are a current teacher looking to take advantage of this program or a former teacher considering it, the Teacher Loan Forgiveness Program could help you reduce your student loan debt. Be sure to research the details and contact your loan servicer to determine if you are eligible for Teacher Loan Forgiveness.
3) Perkins Loan Cancellation and Discharge
If you have a Perkins Loan, you may qualify for full or partial cancellation or discharge depending on the ways to get student loan forgiveness in the United States. A Perkins Loan is a type of loan offered to undergraduate and graduate students who demonstrate financial need. The Perkins Loan is different from other loans because it’s subsidized by the federal government.
The most common way to get your Perkins Loan forgiven or discharged is to work in certain professions or public service roles. You can receive full or partial loan forgiveness for being a teacher, nurse, police officer, firefighter, public defender, military personnel, AmeriCorps volunteer, or librarian. You must serve in a qualifying role for a certain number of years in order to receive loan forgiveness.
In addition to working in certain professions, you may also qualify for Perkins Loan cancellation if you’ve made payments on your loan for at least five years, have become disabled, or are a victim of a crime.
If you think you may be eligible for Perkins Loan forgiveness, it’s important to contact your loan servicer to learn more about the process and determine what documents you need to provide in order to have your loan canceled or discharged.
4) Income-Driven Repayment Plans
One of the ways to get student loan forgiveness in the United States is through Income-Driven Repayment (IDR) Plans. IDR plans allow borrowers to pay a certain percentage of their monthly income toward their student loans, instead of a fixed amount.
The payment amount is usually determined based on the borrower’s discretionary income, family size, and state of residence. This type of plan is ideal for those who are low-income or have high levels of student loan debt.
Under an IDR plan, borrowers can choose from four options: Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR).
Depending on which plan you choose, your payments will be adjusted each year according to your income and family size. After making payments under an IDR plan for a certain number of years, your remaining balance may be forgiven. In most cases, the repayment period for IDR plans is 20-25 years.
5) Student Loan Repayment Assistance Programs
Student Loan Repayment Assistance Programs provide ways to get student loan forgiveness in the United States. These programs are designed to help students manage their educational debt and make it easier to pay back loans.
The U.S. Department of Education offers a variety of repayment assistance programs, including the William D. Ford Federal Direct Loan (Direct Loan) Program, Federal Family Education Loan (FFEL) Program, and Perkins Loan Program.
These programs offer different plans to make repayment more manageable, such as income-driven repayment plans and loan consolidation.
Income-driven repayment plans are based on the borrower’s income and family size, and the payments may be as low as $0 per month. Loan consolidation allows borrowers to combine all of their eligible federal student loans into one loan with a fixed interest rate, potentially lowering their monthly payments.
Additionally, some states offer student loan repayment assistance programs for state-specific loans. For example, Texas has the College Access Loan (CAL) Repayment Assistance Program, which provides loan repayment assistance for CAL borrowers who have exhausted all other repayment options.
For those who have difficulty making payments due to unemployment or other financial hardship, the U.S. Department of Education also offers temporary forbearance or deferment options. Forbearance allows borrowers to temporarily suspend payments, while deferment allows borrowers to postpone payments until they’re in a better financial position.
Ultimately, there are numerous ways to get student loan forgiveness in the United States by taking advantage of available programs and services. It’s important to explore all options and find the best plan that fits each individual’s needs.
6) Military Student Loan Forgiveness and Assistance
For those who have served or are serving in the United States military, there are several ways to get student loan forgiveness in the United States. The Department of Defense offers a number of programs that provide financial assistance and loan forgiveness for military service members.
One way to get student loan forgiveness is through the Servicemembers Civil Relief Act (SCRA). This act provides protection to service members on active duty, which includes a cap on interest rates for student loans taken out before entering active duty. Additionally, SCRA also provides a deferment period for the repayment of federal student loans.
The Veterans Education Assistance Program (VEAP) is another way for veterans to receive student loan forgiveness. VEAP is a program for eligible service members to help pay for college tuition and educational expenses. The program matches contributions from veterans with up to $2 for every $1 that veterans contribute, up to $2,700 per year.
Finally, the Military College Loan Repayment Program (CLRP) is a program that provides up to $65,000 in student loan forgiveness for qualified service members. This loan repayment program will repay 33.33% of the total amount of eligible student loan debt for up to three years of service.
These are just a few of the many ways to get student loan forgiveness in the United States for military service members. To learn more about these and other programs available, contact your local Department of Veterans Affairs office or visit their website.
Bankruptcy is one of the most drastic ways to get student loan forgiveness in the United States. This option should be carefully considered before pursuing it as it has a long-term impact on your credit score and future borrowing. When you file for bankruptcy, all of your debts including student loans can potentially be discharged.
However, it is not an easy process and there are specific requirements that must be met. You must prove that repaying your loans would cause an “undue hardship” on you or your dependents.
This can be difficult to prove and is decided by the courts on a case-by-case basis. Ultimately, bankruptcy is a last resort when it comes to ways to get student loan forgiveness in the United States.