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 EducationData.org, 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.
