Student loan forgiveness is not a quick fix solution that can solve your student debt problems overnight. But they can help you get rid of all or some of your remaining balance over time.
The federal government designed most loan forgiveness programs for borrowers who work in public service, education, health care, and other fields for a specific period. Some states even help graduates with massive loans to pay off their debt.
If you’re finding it difficult to pay off your debt, follow this guide. We’ve outlined the top student loan forgiveness programs that can help you. Go through and find out which one suits your current situation.
Public Service Loan Forgiveness (PSLF)
If you’re a government or a qualifying non-profit employer with federal student loans, you can opt for Public Service Loan Forgiveness. This federal program encourages people to enroll in relatively low-paying careers such as teaching, nursing, firefighting, military, etc.
Before you become eligible, you must make 120 qualifying monthly payments (10 years) while working for a non-profit or the government to get the loan forgiveness. The PSLF comes with tax-free loan forgiveness, unlike other forgiveness programs.
To benefit from the Public Service Loan Forgiveness, you need to have an income-driven repayment plan while making payments. If not, you’ll pay off your student loans on a standard repayment plan before you can benefit from the program.
Income-Driven Repayment Forgiveness
The federal government has four main income-driven repayment plans: PAYE, ICR, IBR, and RePAYE plans. These repayment plans cap your student loan payments at a percentage of your income every month.
When you sign up for income-driven repayment plans, your outstanding balance will qualify for forgiveness after 20 or 25 years. The specific repayment plan will determine whether you are eligible after 20 or 25 years.
We recommend considering this option if you have massive student loan debts relative to your income.
Teacher Loan Forgiveness
To be eligible for the Teacher Loan Forgiveness, you must work in a low-income public elementary or secondary school full time. The required duration is five consecutive years, without which you will not qualify.
You can be forgiven up to $17,500 in Stafford loans or direct loans. To qualify, you must have gone for the student loan after October 1, 1998. The loans that are eligible for Teacher Loan Forgiveness include:
- Subsidized and unsubsidized federal Stafford loans
- Subsidized and unsubsidized direct loans
You don’t qualify for this student loan forgiveness program if you have PLUS loans.
Student Loan Forgiveness For Nurses
Nurses having serious student debts have numerous options for student loan forgiveness. You can opt for Perkins loan cancellation, Public Service Loan Forgiveness, and the NURSE Corps Loan Repayment Program, which offers qualified nurses up to 85% of unpaid student debt.
It’s best to go for Public Service Loan Forgiveness because it may be the one with the best chance of getting your loans forgiven. The NURSE Corps program is very competitive, and few people have Perkins loans.
Military Student Loan Forgiveness And Assistance Program
Military members in the Navy, Army, National Guard, Air Force, and Coast Guard can be eligible for their loan forgiveness programs. For example, qualified soldiers and officers can get up to $50,000 to clear off their loan debts in the National Guard. You can do so through the Student Loan Repayment Program.
Also, you can get up to $65,000 in the Army’s College Loan Repayment Program and the Navy program.
Other Student Loan Forgiveness Programs To Consider
Other student loan forgiveness programs you may be eligible for through the federal government or state programs. Qualifying for these programs depends on where you work and your profession.
State-Sponsored Repayment Assistance Programs
Licensed nurses, teachers, lawyers, and doctors in some states can take advantage of programs to help them repay their debts.
For example, the Mississippi Teacher Loan Repayment Program pays up to $3,000 each year for four years. This program is for teachers with undergraduate educational loans with a specific teaching license for every year. The teacher will also have to teach in a particular subject or geographical area.
Other Student Loan Repayment Assistance Programs (LRAPs)
There are other organizational or national student loan repayment assistance programs given to public service professions.
For example, the National Institutes of Health gives debt assistance of up to $35,000 every year to health professionals selected by the institutes to carry out research.
- Private Student Loan Forgiveness Programs
There are many Private Student Loan Debt Relief options to take advantage of. Not all of them have reliable relief options; it is best to do thorough research before choosing one.
Final Thoughts
Keep in mind that legitimate federal forgiveness programs, including discharge and cancellation programs, are free through the U.S. Education Department. So beware of scams that claim that they can get rid of your debt. Additionally, be aware some universities such as Globe University are being sued due to their unethical practices.
Forgiveness programs are not an alternative for defaulted loans. You’ll have to consolidate to get defaulted federal loans in good shape, for you can qualify for forgiveness programs.
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