What is student loan forgiveness

What Is Student Loan Forgiveness?

Katie Bentley Blog Posts 30 Comments

Student loan debt is increasing every year across all age groups.
As graduates head out into the workforce, many find that they cannot find jobs which will allow them to pay off their loan via the borrowing terms.

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More and more people are turning to student loan forgiveness measures.
There are many different cases, and while everyone’s situation is different,  most people can find a solution that works for them.
These tips will help you ease the burden of student debt if you are experiencing financial hardship.

What is Student Loan Forgiveness?
Student loan forgiveness is a circumstance where a loan backed by the federal government is partially canceled.
They can be discharged or forgiven.
Government-backed loans include Federal Perkins Loans or Direct Subsidized Loans.

Especially if you are in a public service sector job, some industries may be considered more likely to get their loans forgiven.

Almost every loan from the federal government requires repayment with interest, even though the interest rates are usually more reasonable than those from private lenders.
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Who can qualify for student loan forgiveness?
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Federal Direct Loans can also be waived if the student enters the public service sector, something called Public Service Loan Forgiveness.
If you borrowed through the Perkins Loan or through the FFEL program, it is possible to consolidate the loans into one Direct Consolidation Loan. Then, the loan can be forgiven if you qualify for the Public Service Loan Forgiveness.

What Jobs Qualify Me for Public Service Loan Forgiveness?
According to the federal government, in order to qualify for the PSLF program, you must enter a qualifying public service sector job.
This means that you must be employed with a local, federal and state organization which qualifies as a tax-exempt nonprofit or other government agency under the 501(c) section of the tax code.

However, this is an extremely under-utilized law, and it is estimated that almost a fourth of all Americans who attended college qualify for this, yet hardly anyone knows to try this approach.

What about if I don’t work for a non-profit? There are still other possibilities.
You don’t have to work for the government of a nonprofit to qualify for loan forgiveness.
You can go into military service in any branch of the U.S. military as well.
You can use other strategies, including applying to switch your loans over to an Income-Based Repayment Plan.
This will redo the terms of your loan to fit your current income.
You can get interest rates which are proportional to your income, less monthly payments, and possible loan forgiveness for parts of your loan.
This is because, depending on how little you make, some students may qualify for $0 for their monthly payments.

The forgiveness comes in once you have made these proportional payments regularly for many years.
If your loan is not paid off via the established monthly payments which are proportional to your income after 25 full years, the loan is forgiven in full. Depending on how much you initially borrowed, this may not be useful, but if you borrowed a lot, you may not have to pay back half of it!
It just depends on your initial loan amount and how much your monthly income is over the years.

Becoming a Public School Teacher
If you choose to become a public school teacher, even though it is not a nonprofit or a government agency, you still qualify for loan forgiveness if you work in a public school.
Under the Teacher Forgiveness Program, if you work in public school employment for five consecutive years, you can get your full Perkins loan paid off, and up to $17,500 worth of Stafford Loans.

However, it is worth noting that this does not apply as a blanket statement to all public schools.
It is particularly aimed at low-income public schools who are in need of teachers.
There are many of these schools (usually elementary or secondary) scattered throughout each state, and they often change. 

Comments 30

    1. Hi Angie! Thank you for your message. The best way to get you signed up for the program (**if you qualify**) is by calling on of our student loan counselors today! Call 877.433.7501 and tell them you are interested in public service loan forgiveness. They will be happy to assist you!

    1. Good afternoon Clara!
      thank you for your message. Please give us a call at 877.433.7501 at your earliest convenience. You will be able to speak to an experienced student loan counselor about your situation, and they will ask you a few several questions to get to know more about you and which possible repayment programs you could qualify for (if any…) but the best way is to talking to us on the phone.

      Hopefully we will be able to provide some assistance. Thank you

    1. Hi Enjoli, please contact one of our experienced student loan counselors today. Call us at your earliest convenience at 877.433.7501 and say that you are calling about public service loan forgiveness, one of our reps will be asking you a few personal questions to get to know more about you, your loans, your career and about your current employer. Based on your answers they will be able to tell you if you qualify to receive forgiveness, and if you are not eligible they may still be able to help you enroll in an income based repayment program… We do our best to help people lower their monthly payments. So call us! 🙂 you will be happy to get to know your options.

  1. I need to have my loans forgiven. Have a permanent disability and am retired and my income is very low. Do I qualify for loan forgiveness?

    Thank you

    Madeline Larson

    1. Hi Madeline, the best way to find out if you qualify for forgiveness is by calling us and speaking to an expert student loan counselor about your case. They will ask you a few simple quick questions and depending on your answers they will be able to tell you if you qualify for forgiveness or not, and they would even be able to enroll you and take care of all the paperwork and application process for you. Please call us at your earliest convenience at 877.433.7501

      Thank you!

    1. Good morning Ramon, thank you for your message. From what you have told us, you may be able to qualify for public service loan forgiveness, but the best way to know if you can apply for these benefits it is by calling and speaking to a loan counselor directly. They will ask you a few questions about your work, loans, income, etc… Then they will be able to better assist you and let you know in what kind of program you qualify, and will even be able to process your application for you and get you enrolled and all set.
      Please call us at 877.433.7501 and tell one of our reps you’re calling about public service loan forgiveness.

      Thank you

    1. Post
      Author

      Hey Sandra… it sounds like there definitely could be help for you just based on that information alone. Have you checked it out at all? Teacher Forgiveness programs are becoming more and more popular and there’s a good chance you could take advantage of them.

      Check them out here: http://usstudentloancenter.org/loan-forgiveness-program/teacher-loan-forgiveness/

      or give us a to speak to a consultant for a few minutes to see how you could utilize the programs to your benefit. Reach us at 877.433.7501 or visit http://usstudentloancenter.org/free-consultation

      Cheers!

  2. I was attached through a loan from a college that was rename several times and was not accredited by a lot of other school loan balloon from $8,000 to now $43,000 and still no degree that’s accredited this student loan has plagued me since 1988

    1. Post
      Author

      Wow, Gloria… I’m so sorry to hear that. Unfortunately, that’s a common situation among college students from all across the nation.

      I’d love to see how we can help you find relief from the student loan debt you’ve accumulated. Whether that mean student loan forgiveness programs or just a way to reverse the ever-growing amount you’ve accumulated, I encourage you to check it out.

      Feel free to give us a call at 877.433.7501 to speak to a consultant or visit http://usstudentloancenter.org/free-consultation

      Cheers!

  3. Hi. Need help on that. Im dont have a Job at the moment.
    Need someone that speaks spanish
    My Phone number is 7872180855

    1. Post
      Author

      Hey Richard!

      I’ve sent your information to our Consulting Manager and a member of our Spanish team will reach out to you about your situation. We’re looking forward to helping you!

      Cheers!

  4. Been spinning my wheels for years with this stuff.
    My loans were spousal consolidated and even though I am a teacher and my ex lost her job 3 years ago, nothing!
    We have deferred for 3 years. We are in a dead black hole.

    1. Post
      Author

      Sorry to hear you’ve been dealing with this, Lee … You have to be careful with deferments as they run out eventually plus interest continues to accrue- which can make things worse. With teachers there are several options for forgiveness aside from the most popular PSLF depending on the type of school you work for.

      I know the feeling of being trapped in a “black hole” as you say… it sucks!! So I encourage you to find out your options.

      You can go here: http://usstudentloancenter.org/loan-forgiveness-program/teacher-loan-forgiveness/

      or here: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher#teacher-cancellation

      Or you can just give us a call at 877.433.7501 option 3 to speak to a consultant for a few minutes and see how you may be able to get out of this black hole.

      Hope this helps. Cheers!

    1. Post
      Author

      Sure thing, Michael! I’ve forwarded your information to our Consulting Manager and you should be hearing from a member of our team to discuss your student loans with you.

      Cheers!

    1. Post
      Author

      Hey Admar,

      Based on the information you just gave me, there could be several options that you can take advantage of. Please give our offices a call at 877.433.7501 option 3 to speak to one of our Student Loan Counselors. We would love to speak with you more about it. Hablamos Espanol!

      Cheers!

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