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Student Loan Forgiven After 25 Years

Student Loan Forgiven After 25 Years

If you have a Direct Loan or FFEL Program loan, you may qualify for loan forgiveness after you make qualified payments each month for 25 years.

If you have a Direct Loan or FFEL Program loan, you may qualify for loan forgiveness after you make qualified payments each month for 25 years.

If you have a Direct Loan or FFEL Program loan, you may qualify for loan forgiveness after you make qualified payments each month for 25 years.

To be eligible, your loans must have been made before Oct. 1, 2007 and they can’t be in default (if they are in default, contact your lender). You also must have had direct loans on or after Oct. 1, 2017.

If there’s no penalty for not repaying your debt under the income-driven repayment plans—or if that penalty is less than $50—you won’t pay anything until April 2020. If the penalty is more than $50 but less than $600 when it’s due through 2021, then it will be deducted directly from each monthly payment until it’s paid off completely; otherwise, any remaining balance will be forgiven by 2022 and 2023 respectively .

Teacher Loan Forgiveness

If you are a teacher and have taken out a loan to pay for school, there may be some good news on the horizon. The Teacher Loan Forgiveness program is available if you have worked full-time as a teacher for five consecutive years in an elementary school, secondary school or educational service agency that serves low-income families or children with disabilities. Teachers who teach full-time for five consecutive years in high-need fields like special education and math, science and bilingual education can also be eligible for this benefit.

Perkins Loan Cancellation and Discharge

If you received a Perkins loan, you may be eligible for cancellation and discharge of your student loans. To qualify, you must:

  • Have received a Pell Grant (or been selected to receive one) while attending your undergraduate or graduate program at least half-time (at least 6 hours per week). This applies to both bachelor’s and master’s degrees.
  • Be a qualified borrower who began repayment on or after October 1, 1998; or
  • Be the recipient of an FFEL Program Loan or Federal Direct Parent PLUS Loan made on or after October 1, 2006; OR
  • Be the borrower of an FFEL Program Consolidation Loan whose consolidation application was completed on or before July 1, 2014; OR
  • Be the borrower of any other type of consolidation loan that includes at least one FFEL Program Loan; AND

Public Service Loan Forgiveness

The Public Service Loan Forgiveness program is available to borrowers who have made 120 qualifying payments on their loans. It’s important to note that there are many different types of student loan debt, each with its own unique regulations and requirements.

These include:

  • Federal Direct Loans (Stafford, Perkins, PLUS)
  • Federal Family Education Loan Program (FFELP) Loans
  • Federal Perkins Loans

If you’re unsure about whether or not your loans qualify for PSLF forgiveness or would like more information about how this works, please contact us today.

If your time to pay back student loans has passed 25 years, you are free from having to pay them back.

If you’ve had any of the following loans, you’re eligible:

  • Direct Loan or FFEL Program loans
  • Perkins Loans
  • Public Service Loan Forgiveness

It’s important to take the time to understand all of your repayment options, including the possibility of loan forgiveness. You can find more information on these programs and others through the Department of Education’s website. The bottom line is that you should never ignore your student loans because they will always come back to haunt you!