You may have graduated from school already, but there is something else you need to graduate from: student loan debt. Your student loans may have been necessary for you to finance your post-secondary education tuition fees and related expenses. However, the reality of your debt is probably sinking in now that you need to start paying back what you borrowed.
Do you wish you could figure out how to get out of student loan debt? Read on to discover how to graduate from your student loan debts with flying colors.
Check If You Are Eligible for Student Loan Forgiveness or Discharge
One of the best ways to climb out of the pit of debt is to take advantage of student loan forgiveness or discharge. According to the Federal Student Aid office, you may potentially be eligible for loan forgiveness or discharge, based on your job and other special circumstances.
Take note that student loan forgiveness or discharge is only applicable for federal student loans, which are direct loans from the federal government. These are not applicable for your non-federal student loans, which are loans from private lenders.
What Is Student Loan Forgiveness?
Student loan forgiveness simply means that you do not need to pay a portion or the total of your debt because of the nature of your job. Find out if student loan forgiveness is a viable option for you.
Teacher Loan Forgiveness
You may possibly qualify for the Teacher Loan Forgiveness, in case you have been teaching in a full-time capacity for five straight academic years in an educational service agency or a low-income elementary school or secondary school. You can potentially receive loan forgiveness worth up to $17,500 for your FFEL Program loans and Direct Loans.
Public Service Loan Forgiveness
You can apply for loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, in case you are working for the government or a non-profit organization. This type of loan forgiveness is applicable for your Direct Loans.
What Is Student Loan Discharge?
Student loan discharge means that you do not need to pay your partial or total student loan debt because of special circumstances, including the closure of the school where you incurred your loans or your permanent, total disability. Discover if student loan discharge is a realistic option for you.
Closed School Discharge
You may potentially qualify for Closed School Discharge in case your school unexpectedly shuts down while you are currently enrolled as a student or soon after you leave school. This kind of discharge is applicable for Perkins Loans, Direct Loans, and FFEL Program loans.
Total and Permanent Disability Discharge
You may possibly be eligible for Total and Permanent Disability Discharge in case you become totally disabled on a permanent basis. This type of discharge is applicable to Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation. It is also pertinent to federal student loans, such as FFEL Program loans, Direct Loans, and Perkins Loans.
These are just some examples of student loan forgiveness and discharge. You can do more research to learn more about other kinds of forgiveness and discharge that may be relevant to your own particular situation.
Utilize Student Loan Forgiveness or Discharge to Get Out of Debt
If you are wondering how to get out of student loan debt, you can try to apply for student loan forgiveness or discharge if you are eligible for it. Prepare and submit all the necessary paperwork, requirements, and documents to the right government office.
Student loan forgiveness and discharge may not be easy or perfect, since both processes come with their own logistic and financial challenges. However, it’s certainly worth a shot since it can give you the chance to be free from partial or total student loan debts.