Librarian with a master's degree working in a Title I-eligible elementary or secondary school or in a public library serving Title I-eligible schoolsįull-time law enforcement or corrections officerįull-time attorney employed in a federal public or community defender organization (for service that began on or after Aug. 14, 2008)įull-time qualified professional provider of early intervention services for the disabledįull-time faculty member at a tribal college or universityįull-time speech pathologist with master's degree working in a Title I-eligible elementary or secondary school Up to 100% for five years of eligible serviceįull-time firefighter (for service that began on or after Aug. Depending on your position, you could have up to 100% of your loans forgiven within five years.īelow is the list of eligible career paths and the amount of debt that can be canceled. If you have Perkins loans-the last of which were issued in 2018-and work in public service, you may be eligible for partial or full loan forgiveness. You can apply for an IDR plan online or by contacting your loan servicer. To qualify for IDR plan forgiveness, you must be eligible for one of the following IDR plans and have a balance after making payments for the full repayment term: However, the canceled loan amount may be taxable as income. If you still have a balance at the end of your repayment period, the remaining amount is forgiven. Your repayment term may be 20 or 25 years, depending on what plan you choose. Depending on your situation, you could qualify for a much lower monthly payment than you’re making now. With this approach, you enter into an IDR plan, which bases your monthly payment on your family size and discretionary income. Income-driven repayment (IDR) plan forgiveness is a good option if you cannot afford your payments under a 10-year standard repayment plan. After you meet the forgiveness programs’ requirements, the remaining loan balance is canceled. With student loan forgiveness programs, you typically make payments for a set period of time. In most cases, you’ll have to provide proof of eligibility. Others, like Perkins loan cancellation, provide forgiveness on an ongoing basis based on years of qualifying service. Some, like Public Service Loan Forgiveness, require you to make a certain number of on-time monthly payments before applying for forgiveness. But if you’re having trouble making private loan payments, you can look into loan modification through your lender or repayment assistance programs.Įach federal forgiveness option works a little differently, depending on whether it’s a discharge, cancellation or forgiveness program. There are far fewer student loan forgiveness programs available for private student loans than federal loans. You can qualify for federal student loan forgiveness based on a range of circumstances, including the type of work you do, your disability status and whether the college you attended defrauded you. Related: Student Loan Forgiveness Calculator Or, you may be eligible for loan discharge based on circumstances beyond your control, such as becoming totally and permanently disabled. You may qualify for student loan forgiveness or cancellation based on your qualifications, such as your career path. While the terms student loan forgiveness or cancellation and loan discharge are often used interchangeably, they’re actually very different from one another. You may qualify to have some or all of your loans forgiven or discharged in certain situations. Department of Education offers several forgiveness and discharge programs for federal student loans. What Is Student Loan Forgiveness or Discharge? However, these programs are only available for federal student loans, not private ones, and the qualification requirements can be rigorous.īelow, learn about the different programs available and how to apply. According to the Federal Reserve, adults in 2019 who had college debt typically owed between $20,000 and $24,999.įor those struggling with student debt, loan forgiveness or loan discharge can sound like a dream come true. If you’re like most college graduates, you left school with a substantial amount of debt.
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