How To Get Student Loan Forgiveness

Student loan forgiveness programs offer a lifeline to borrowers struggling with the burden of crippling student debt. Understanding the various programs and eligibility criteria is key for those seeking relief from their financial obligations. Here’s a comprehensive guide on how to navigate the path to student loan forgiveness. In this guide, we’ll provide a breakdown of how people still paying off student loans can cancel their debt and get student loan forgiveness. Here are the following ways you can qualify:

Check if You Qualify for Forgiveness

To be eligible for student loan forgiveness programs, you must have a federal student loan, such as a Direct Loan, a Perkins loan, or a Federal Family Education Loan (FFEL) program. Please note that private student loans unfortunately do not qualify for cancellation. To check whether you have federal loans, go to StudentAid.gov and log in or recover your account. Determine what type of federal student loans you have and what you still owe. If you have a Perkins loan or an FFELP, you may need to consolidate them first before you apply for forgiveness.

Income-Driven Repayment (IDR) Plan Forgiveness

The most recent repayment plan is available through the income-driven repayment plan, such as the Saving on a Valuable Education (SAVE) program. Anyone with a federal Direct Loan is eligible to apply. This plan allows you to cancel your student debt in as soon as 10 years if you have an outstanding balance of under $12,000, or 20 to 25 years if your outstanding balance is higher than that. If you earn less than $32,800, your monthly fees could be $0, otherwise they’ll be capped at 5-10% of your monthly income.

Public Service Loan Forgiveness (PSLF)

The PSLF forgiveness program is available for anyone with a Direct Loan who is working for a qualifying public service provider, such as a government or non-profit employer. This includes teaching, medical professionals, or being in the military.

The PSLF plan will cancel your debt after you’ve made qualifying repayments for 10 years or more (i.e. 120 qualifying monthly payments) under a recognized repayment plan. Income-driven repayment plans are typically required. To apply, make sure that your employer qualifies for this forgiveness program using the PSLF Help Tool on the Federal Student Aid website. If you have a FFEL or Perkins Loan, consolidate them into a Direct Consolidation Loan before you submit your application. 

Teacher Loan Forgiveness

If you’re a teacher, you may be eligible for teacher student loan forgiveness up to $17,500 if you have a Direct Loan or FFEL Program loan. To qualify, you need to have taught full-time for at least five consecutive years in a low-income school or an educational service agency. If you don’t meet this criteria, you will receive $5,000.

To check if you can apply for this program, first make sure the school you work for is listed in the Teacher Cancellation Low Income Directory. Note that you can’t receive credit for towards Teacher Loan Forgiveness and PSLF for the same period of teaching. If you want to apply for both, you will need to meet the criteria in separate years.

Federal Perkins Loan Cancellation

You may be able to cancel your Perkins Loans debt if you work in certain public service jobs, such as teaching, law enforcement, nursing, or the military. To check if you’re eligible for this plan, make sure that your job qualifies for Perkins Loan Cancellation. Contact the school that issued the loan to you or the loan servicer for the application process and then submit the necessary documentation every year.

Military Forgiveness Programs

If you work in the military or have completed a term of national service, you may be eligible for other student loan forgiveness programs. The United States Department of Education and Department of Defense have special benefits for members of the military who hold federal student loans. They offer benefits such as interest rate caps under the Servicemembers Civil Relief Act and Department of Defense student loan repayment programs. Your military service can also count toward PSLF.

Total and Permanent Disability Discharge

If you have a permanent disability, you may qualify for a discharge of your federal student loans, such as a Direct Loan, Perkins Loan, or Federal Family Education Loan (FFEL) Program loan. TEACH Grant service obligations can also be forgiven if the person dies or is subject to extended periods of qualifying military service.

National Service Forgiveness Programs

If you have completed a term of national service in a recognized AmeriCorps program, you may receive the Segal AmeriCorps Education Award. You can use this award to repay qualified student loans. AmeriCorps service can also count towards PSLF.

Other Methods

There are several other ways you can qualify for student loan forgiveness for a Direct Loan, Federal Perkins Loan, or FFEL Program loan, such as:

  • If your school closes down or misleads you while you’re enrolled or soon after you withdraw.
  • If you’ve completed eligible volunteer service or employment (such as in firefighting, education, the military, or the Peace Corps).
  • If you have a parent PLUS loan and you die or become permanently disabled.
  • If you’re a victim of fraud or forgery.
  • If you’ve declared bankruptcy.

Stay Informed About Your Options

Understanding and navigating student loan forgiveness programs can significantly ease the financial burden for many borrowers. By exploring various options like Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Income-Driven Repayment plans, you can find pathways to reduce or eliminate your student debt. Staying informed about the eligibility criteria, and application processes, and maintaining timely payments are important for securing forgiveness benefits. 

Contact Pasquesi Sheppard

For more information on student loan forgiveness programs or how to handle your finances responsibly, contact Pasquesi Sheppard for specialized accounting services. We can provide personalized guidance to help you make informed financial decisions and achieve your long-term financial goals. Visit Pasquesi Sheppard today to take the first step toward financial freedom.

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