Student Loan Forgiveness Program | Easy Ways to Qualify

student loan forgiveness program

The most significant advancements in student loan forgiveness in the previous month have been the most significant news in the student loan industry. President Joe Biden and the US Department of Education announced significant improvements to the troubled Public Service Loan Forgiveness program, which could result in total loan forgiveness for hundreds of thousands of students. There is, however, a deadline for applying for student loan forgiveness. Check out how to enter below. And also, see how it will affect your student loans.

President Biden Student Loan Forgiveness

Since taking office, Biden has canceled $11.5 billion in student loans. Check out the $11.5 billion loan forgiveness detailed below.

  • Student loans totaling $4.5 billion were canceled as a result of public service loan forgiveness.
  • Student loan forgiveness totaling $5.8 billion for people who are totally and permanently disabled.
  • Through the borrower defense to repayment process, about 92,000 student loan borrowers obtained $1.5 billion in loan cancellations.

Student Loan Forgiveness Program 

See the criteria to qualify for the student loan forgiveness program. 

Public Service Loan Forgiveness

You may be eligible to have a portion of your federal student loan debt canceled if you work in public service. Government service, military duty, law enforcement, public health, and certain educational roles all qualify as public-interest jobs.

Loan forgiveness for government employees is not automatic. Once you’ve made 120 qualifying payments, you can request loan forgiveness.

Public service debt forgiveness is not available for Perkins and FFEL loans. To take advantage of public service loan forgiveness, you can convert these loans into a Direct Consolidation Loan. Before consolidation, payments are not counted toward the 120 qualifying payments.

Tip: Under the public service debt forgiveness program, any sum forgiven is not taxable as income.

To apply for the public service loan forgiveness you need to:

  1. Pay 120 monthly installments
  2. During the 120-day period in which you make each of the 120 installments, work full-time in public-sector employment.
  3. Pay according to the IBR, ICR, standard (10-year), or other qualified plans.
  4. Have a non-defaulted Direct Subsidized or Unsubsidized, Direct PLUS, or Direct Consolidation Loan.

Teacher loan forgiveness

If you teach for five complete and consecutive academic years in a low-income school or educational support organization and meet additional requirements, you may be eligible for up to $17,500 in student loan forgiveness. In contrast, if you plan to teach for at least ten years, you may be eligible for entire student loan forgiveness through public service loan forgiveness.

To apply for teacher loan cancelation, you need to apply for student loan forgiveness through the Teach Loan Forgiveness program.

Borrower defense to repayment rule

Your institution or university lied to you or did something else wrong. You may need to show that your school broke state law on your student loans or educational services. Borrower defense against repayment allows you to secure a partial or entire cancellation of your student loans.

To apply for this loan forgiveness, you need to request a cancellation of a student loan due to a borrower’s refusal to pay.

Other student loan forgiveness programs include:

  1. Income-based repayment plans
  2. Total and permanent disability
  3. Discharge due to death
  4. Discharge due to bankruptcy

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