Student Loan Forgiveness Applications
Student loan forgiveness programs are designed to help students deal with the financial burden of repaying student loans. These programs are an option for students who cannot repay their loans or who have been unable to find a job after graduation that allows them to pay off their student loan debt. The following is an overview of some of the most popular student loan forgiveness programs available today:
Public Service Loan Forgiveness (PSLF)
The Public Service Loan Forgiveness Program is designed to encourage professionals in certain fields, such as education and healthcare, to continue their careers in public service. If you work full-time for a qualifying employer and make 120 on-time monthly payments (10 years), your remaining federal student loan balance may be waived.
To be eligible for PSLF you must:
- Be employed full-time by an eligible employer;
- Have been accepted into the program by FedLoan Servicing; and
- Have at least one Direct Loan that qualifies under the income driven repayment plan (usually this means you borrowed before July 1st 2014).
Teacher Loan Forgiveness
If you’re a teacher, then you may be able to qualify for teacher loan forgiveness.
Teachers who teach in low-income schools for five consecutive years can qualify for forgiveness. For example, if you work at a school that qualifies as a low-income school and teach there for at least five years, then your remaining student loans will be forgiven after 120 qualifying payments. If this sounds like it might apply to you, visit the Teacher Loan Forgiveness Page on StudentAid.gov or contact your student loan servicer directly to learn more about how to apply for help with your payment plans and loan forgiveness options
The Perkins Loan Cancellation and Discharge Program
You may be eligible to have your Perkins Loan Cancellation and Discharge Program (Perkins Loan CD) if:
- You were a member of the U.S. armed forces who served on active duty during a war or in support of a war during the periods of:
o September 8, 1939, through December 31, 1946;
o June 25, 1950 through July 1, 1955;
o February 28, 1961 through May 7, 1975;
or August 2, 1990 through April 30, 1991; or
Total and Permanent Disability Discharge (TPD)
Total and Permanent Disability Discharge (TPD)
If you become totally and permanently disabled, your loans may be discharged. The Department of Education will determine whether your disability is considered total and permanent based on the information provided by you and a doctor. To qualify for TPD, you must have:
- A physician’s certification that you are unable to work because of a physical or mental impairment(s) that can be expected to result in death; OR
- A physician’s certification stating that the borrower is unable to engage in any substantial gainful activity due to a medically determinable physical or mental impairment(s) that can be expected to result in death; AND
- Proof that this condition has lasted at least 12 months or is expected to last at least 12 months. The doctor must submit a completed SSA Certificate of Disability letter confirming his/her opinion on how long he/she expects the borrower will be disabled before they die (this letter should come from Social Security Administration).
Discharging Loans in Bankruptcy
If you’re considering filing for bankruptcy, it’s important to understand that student loan debt is not dischargeable. In fact, only in very rare cases can you apply for a discharge of student loans in bankruptcy.
You’ll need to file a separate lawsuit that argues undue hardship. This is a legal term used when someone cannot maintain a minimal standard of living if they have to repay their loans. You must prove that repaying your debts would cause an undue burden on your current financial situation and future prospects (i.e., losing your job). However, the courts do not take pity on all who file this type of suit—they consider each case individually and will weigh the pros and cons before granting relief from repayment obligations under federal student loan programs operated by ED or FFEL holders (but not state or private loans).
Closed School Discharge
You may be entitled to a Closed School Discharge if your school closed while you were enrolled. If this happens, students can apply for a discharge of their federal student loans, which will release them from the obligation of repaying any remaining balances on those loans. Closed schools are defined as institutions that have gone out of business or stopped providing educational programs and/or services for at least two years, and have not offered any title IV federal financial aid (federal grants or loans) during that timeframe.
To qualify for a closed school discharge:
- You must have been enrolled at the time your institution closed down (or was scheduled to close).
- The school must meet one of several criteria regarding its closure status—for example, it may have ceased operations before completing its program offerings; it may no longer be legally permitted to provide educational services; or it may have ceased operations due to bankruptcy proceedings; etcetera—and all other requirements related specifically to situations like yours must also apply before you can qualify as well! There’s also an additional requirement: If your institution shut down because of government action taken against it (like being investigated by state authorities), then this counts as well!
Student loan forgiveness programs are an option for students who cannot repay their loans.
Student loan forgiveness programs are an options for students who cannot repay their loans. If you find yourself unable to make payments on your student debt, there are options available to help you.
The first step is learning about the different types of student loan forgiveness programs that may be available to you. There are several different types of student loan forgiveness programs and each has its own eligibility requirements and application process.
Here’s what you need to know:
Student loan forgiveness programs are an option for students who cannot repay their loans. If you think that you qualify for any of these programs, contact us today and we can help guide you through the process so that it is stress-free.