If you haven’t heard about student loan forgiveness programs, know that they do exist. These programs release you from your student loan contract and you are no longer responsible for the money you owed. Each program has different requirements that you must meet and not everyone will qualify to have their loan forgiven under each program. Here at LendEDU, we have put together an interactive map with each state’s student loan forgiveness programs.
Students who are able to have their loan forgiven will benefit from the opportunity, but it is important that you pay attention to the program you are applying under and that you make ALL of your payments on time, all of the time.
If you are unsure if there is a program for you, consider the following available ones that readily help students out.
Public Service Loan Forgiveness
The PSLF program is designed to help those students who work in a public service career. The student’s loan is typically forgiven once the student has made 120 qualifying payments. The payments must be made through a qualifying payment plan, otherwise, the payments will not count toward the 120 number.
Before a student’s loan is forgiven, the student must work in a position that is considered acceptable by the program.
Special Forgiveness Programs for Doctors and Lawyers
Doctors and lawyers have hefty student loan debt once they finally graduate with their degree. For this reason, there are special programs available to doctors and lawyers that will forgive their loans. Not all states offer special programs and it is important to find out whether or not yours does.
Often times, the loan programs will help doctors and lawyers pay off their loans when the student works in an underprivileged area for a number of years. This is a great benefit and can provide the student with a way to help the community while paying off his or her loans.
Teacher Loan Forgiveness
The teacher loan forgiveness program is available to students who received a teaching degree. Since educators are such an integral part of society, there is relief for them once they have graduated and moved into their career.
Under this program, students will need to work as a teacher in a low income school. In addition, the student will need to be a teacher for five consecutive years. You cannot be in poor standing and all of your loans must be current, which means you still need to pay on them while you are waiting to qualify for the forgiveness.
One thing to note about this program is that not all of the loan is forgiven and only a portion of it. Typically, teachers receive up to $17,500 under this program.
Income-Based Repayment Plan
The income-based repayment plan does have a forgiveness option attached to it as well. This program is not a typical forgiveness program, but after you make payments for anywhere between 20 to 25 years, you can have the remaining amount of your loan discharged.
It is vital that you do not miss any payments while paying under this program. If you are having trouble affording the payments due to a decrease in income, speak with your loan provider. Since the plan works off of the income you receive, you will find that it is quite affordable.
If you have a severe accident and you are permanently disabled, you may be able to have your loans forgiven and discharged. To qualify under this program, you must meet certain criteria. For instance, if your condition has lasted for a total of 60 months or is expected to last longer than that, you can apply to have your loans forgiven.
If you find that you are having trouble when it comes time to pay off your student loan, it is important to ask for help and seek out a program that works for you. You do not want your federal or private student loans to go into default as this will open a large can of worms including negative reports to credit companies and even wage garnishments.
There are a number of places that will forgive student loans and you should look into each program to see if you qualify for one of them. Remember, always make your payments to avoid default.
Author: Jeff Gitlen
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