In terms of college, all sources of financial aid should be considered by students. Scholarships and grants are always the most popular type of financial help because they don't have to be repaid and are considered "free money." Even with federal grants and scholarships, most students will have a gap in their college funds that would necessitate a student loan in some form or another.
To cover the cost of higher education, the majority of college students take out student loans. According to the Student Loan Debt Statistics conducted by educationdata.org, approximately 42.9 million Americans owe an average of $37,105 on their federal student loans.
Fortunately, the Student Loan Forgiveness Programs were established by the federal government as a reaction to the ongoing student loan repayment crisis that affected millions of borrowers. If the criteria are matched and requirements are met, qualified borrowers who receive student loan forgiveness are freed from the responsibility to repay a portion or even all of their federal student loan debt.
What Are the Common Student Loan Forgiveness Programs?
Student loan forgiveness programs aren't a quick fix for your debt problems, but they can help you pay down some or all of your debt over time. There are a variety of options for student loan forgiveness but each has its own set of requirements and application process.
Here are a few of the most popular types of student loan forgiveness programs:
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Temporary Expanded Public Service Loan Forgiveness
- Closed School Discharge
- Military Student Loan Forgiveness and Assistance
- Total and Permanent Disability Discharge
How Many Times Can I Apply for a Student Loan Forgiveness Program?
Even though there are numerous student loan forgiveness programs accessible to borrowers, you are only allowed to apply for one forgiveness program at a time. In other words, you can't be enrolled in more than one forgiveness program at the same time.
Can I Apply for a Student Loan Forgiveness Program Twice?
All student loan forgiveness programs only offer a one-time reward. After a student loan forgiveness program has ended, you can't apply for the same forgiveness program again to pay off your debt, even if you've met the conditions for that program.
Whatever benefit you get from that specific program, even if it is only a portion of your debt that was paid off, you can’t reapply for the same program to get the same benefit again.
Can I Apply For Another Student Loan Forgiveness Program If I Have Already Received Forgiveness?
If you've received forgiveness from a certain student loan forgiveness program, you won't be able to apply for the same one again. However, with meeting certain criteria, there are other forgiveness programs for which you can apply even if you have already received forgiveness.
For example, the Teacher Loan Forgiveness Program provides financial assistance to qualified teachers who serve in low-income schools or educational institutions. However, the Teacher Loan Forgiveness Program only forgives a portion of your student loan.
If you’re a teacher for a non-profit organization or government agency, you may be eligible for the Public Service Loan Forgiveness (PSLF). Therefore, even after receiving the Teacher Loan Forgiveness, you can apply for the PSLF program to pay off the remaining balance of your student loan.