Student loan forgiveness is a great program that can help you get out of debt. If you have student loans, you may be able to have part or all of your debt forgiven. There are several different types of student loan forgiveness programs, so it’s important to understand which one is best for you.
The government offers several student loan forgiveness programs, including the Public Service Loan Forgiveness Program and the Teacher Loan Forgiveness Program. If you work in a public service job or as a teacher, you may be eligible for these programs.
There are also private student loan forgiveness programs offered by some banks and lenders. These programs are usually offered to borrowers who have been approved for loan consolidation. If you have student loans, it’s important to research all of your options for forgiveness.
There are a few different types of student loan forgiveness, and each one has its own set of qualifications. Here are some of the most common types of student loan forgiveness:
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness is available to borrowers who work in qualifying public service jobs. To qualify for PSLF, you must make 120 qualifying monthly payments (10 years’ worth). After making those payments, you can apply for loan forgiveness.
Teacher Loan Forgiveness
Teacher Loan Forgiveness is available to teachers who work in qualifying schools. To qualify for teacher loan forgiveness, you must make five consecutive years of qualifying payments. After making those payments, you can apply for loan forgiveness.
Perkins Loan Cancellation and Discharge
Perkins Loan Cancellation and Discharge is available to borrowers who work in qualifying jobs. To qualify, you must make five consecutive years of qualifying payments. After making those payments, you can apply for loan forgiveness.
Income-Based Repayment (IBR)
Income-Based Repayment is available to all federal student loan borrowers. IBR plans cap your monthly payment at a percentage of your income, and after 25 years (or 20 years if you’re a public servant), any remaining balance on your loans will be forgiven.
Pay As You Earn (PAYE)
Pay As You Earn is similar to Income-Based Repayment, but with a lower monthly payment cap and a shorter repayment period. With PAYE, your monthly payments are capped at 10% of your discretionary income, and any remaining balance on your loans will be forgiven after 20 years.
Revised Pay As You Earn (REPAYE)
Revised Pay As You Earn is available to all federal student loan borrowers. REPAYE plans cap your monthly payment at 10% of your discretionary income, regardless of when you took out your loans. After 20 or 25 years (depending on whether you’re a public servant), any remaining balance on your loans will be forgiven.
Total and Permanent Disability Discharge
A Total and Permanent Disability Discharge is available to borrowers who can’t work due to a disability. To qualify, you must provide documentation from a doctor that states you’re totally and permanently disabled. After submitting documentation, your loans will be discharged.
Death Discharge
Student loan forgiveness can be a tricky topic, especially when it comes to death discharge. In general, student loans are not forgiven upon the death of the borrower. However, there are some exceptions to this rule.
If you have a private student loan, your lender may offer some type of death discharge option. This is typically offered as a hardship option and is not automatic. You will need to contact your lender and provide documentation of the death, such as a death certificate.
Conclusion
There are a variety of different student loan forgiveness programs available, so it’s important to research which ones you may qualify for. If you have federal student loans, IBR, PAYE, and REPAYE are all great options that offer loan forgiveness after 20 or 25 years.
If you work in public service or as a teacher, PSLF and Teacher Loan Forgiveness are great options that offer loan forgiveness after 10 years. Whatever your situation, there’s a student loan forgiveness program that can help you save money on your loans.