September 7, 2021

How Does Student Loan Forgiveness Work?


When you’re released from having to repay some or all of your federal student loan it is referred to as student loan forgiveness. When you receive student loan forgiveness, you’ll be able to use these as payment towards your post-secondary education. You can get forgiveness on various kinds of loans, which include Perkins and direct loans.

The kinds of loan forgiveness programs you can receive are teacher loans or public service loans. If you want your loan to be forgiven, it is essential that you continue to make payments while you apply and wait for approval. In this blog post, we provide the essential details regarding student loan forgiveness.

How Does Student Loan Forgiveness Work?

According to a report from, student debt in the U.S. has reached an all-time high. This consists of $1.73 trillion in student loan debt, where more than $1.56 trillion is made up of the Federal Loan Portfolio. It goes on to say that as many as 43 million Americans owe as much as $40,000 on average.

However, there are cases when a borrower might be able to have their loans canceled or forgiven. If eligible, a student loan forgiveness will effectively release you from the obligation of having to repay some or all of your federal student loan. While the prospect of having your debt written off can seem like a great deal, getting it isn’t as easy as it sounds.

Unfortunately, not everyone can qualify for student loan forgiveness. The requirements needed of you will vary depending on the kind of loan. The chance for student loan forgiveness is offered mostly for those employed under a few public service jobs. This includes AmeriCorps, military service, government service, and teachers. Here are the several loan programs that may qualify you for student loan forgiveness:

  • Direct Loan program
  • Perkins Loan program
  • Federal Family Education Loan program

How To Qualify for Student Loan Forgiveness

There may be a few variations in the rules, but the typical requirements for student loan forgiveness include:

  • Working in a specific job, in a low-income area, or in a field of high-demand
  • Have a certain kind of student loan (most programs will only accept those who borrowed a federal student loan)
  • Make payments on time with your student loans as you wait for your approval
  • Agree to work for a certain amount of time

In order to qualify for loan forgiveness, you need to make sure that you understand everything from your plan and know what it takes to qualify. Be sure to read the fine print and contact the administrator for your student loan debt relief plan should you have any questions.

If you do qualify for a discharge or student loan forgiveness, remember to do your research and ensure that all the approved documentation is with you to further assist. Moreover, the application process will vary based on your situation, so be sure to contact your loan servicer for any questions.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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