What Is The Student Loan Forgiveness

What Is The Student Loan Forgiveness

The federal government offers several student loan forgiveness programs, under a variety of names, which provide options for borrowers to have their student loans discharged. The most popular program is Public Service Loan Forgiveness (PSLF), in which borrowers who work in public service can have their remaining debt discharged after 120 qualifying payments (on-time and in-full). However, there are other forgiveness options available that may be more suitable for your situation.

The federal government offers several student loan forgiveness programs, under a variety of names, which provide options to have your student loans discharged.

The federal government offers several student loan forgiveness programs, under a variety of names, which provide options to have your student loans discharged. These programs are often referred to as the Student Loan Forgiveness Programs or Student Loan Cancellation Programs.

Here is a list of all the current federal student loan forgiveness programs:

  • Loan Forgiveness for Public Service Employees (PSLF)
  • Teacher Loan Forgiveness Program (TLFP)
  • Loan Forgiveness for AmeriCorps Volunteers (AmeriCorps VISTA/NCCC/CCVI)
  • Student Loan Discharge Assurance – National Guard & Reserve Under 10 U.S.C 685(b)(1)(A), Section 16662(d)(1), Section 16668(a)(2), Section 16669(a)(1).

Public Service Loan Forgiveness (PSLF) is the most popular student loan forgiveness program. Under PSLF, borrowers are able to discharge their federal loans after working 10 years in public service while making 120 qualifying payments (on-time and in-full).

PSLF is the most popular student loan forgiveness program. Under PSLF, borrowers are able to discharge their federal loans after working 10 years in public service while making 120 qualifying payments (on-time and in-full).

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The amount of debt you can have forgiven depends on the type of loan: undergraduate or graduate, Direct or FFEL/Federal Family Education Loan Program (FFELP), and whether you borrowed before or after July 1st 2007. In order to qualify for PSLF, you must have federal direct loans from an eligible lender that were issued between July 1st 2007 and June 30th 2012; these loans must be in repayment status and not currently grace period. You also need to make 120 monthly payments on those eligible loans that are made under a qualifying repayment plan – usually an income-driven repayment plan – while working full time at a qualified employer as defined by the U.S Department of Education (DOE).

Other forgiveness options include Teacher Loan Forgiveness, a Perkins Loan Cancellation, and an Income-Based Repayment Forgiveness.

  • Teacher Loan Forgiveness: If you’ve been working as a teacher for a certain amount of time, you may be eligible for this type of forgiveness. The United States Department of Education accepts applications each year in the summer and fall. To qualify, you must work full-time as an elementary school teacher or secondary school instructor. If your student loan is forgiven after 120 qualifying payments (10 years), it will be tax-free.

Check out our full list of student loan forgiveness options!

If you’re thinking about applying for student loan forgiveness, it’s important to research all of your options first. There are a few different types of student loan forgiveness programs. The ones that are available depend on the type of loans you have and whether or not you have paid them off in full already.

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Here is our list of the most common types:

  • Public Service Loan Forgiveness (PSLF)
  • Teacher Loan Forgiveness Program (TLFP)
  • Federal Perkins Loan Cancellation Program (PLCP)

We hope that this post has cleared up some of the confusion around student loan forgiveness. If you still have questions, feel free to reach out to us at hello@studentloans.com!

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