Are you swimming in debt because of student loans? If so, you’re probably wondering how to qualify for student loan forgiveness. But, are student loans forgiven?
The good news is, there are ways to qualify for student loan forgiveness. The not so great news is that there are strict stipulations according to how and why these loans may be forgiven.
Let’s take a closer look at some of the programs that exist so you can get out from underneath this burden that is student debt.
How to Qualify for Student Loan Forgiveness
Student debt forgiveness is more common than you may think. The secret lies in what you do with your degree after graduation and/or your personal situation according to your ability to repay the debt.
Here are some of the options available :
Student Loan Discharge for a Closed School
It’s definitely not fair to be forced to repay student loan debt if the school you attended no longer exists. That’s why you may qualify to have your debt forgiven as long as you were enrolled when your school closed or shortly after you withdrew.
Student Loan Discharge for Total and Permanent Disability
If you are deemed totally and permanently disabled and you’re receiving disability income and benefits, you are eligible to qualify for student loan forgiveness. There is a long trail of paperwork to fill out but it is possible.
Specific Jobs – Forgiveness Programs Are Available
Student loan forgiveness for doctors is just one profession that allows for individuals to have their debt erased. Teachers may also be eligible depending on the type of loan you have and the State regulations surrounding your debt.
Income-Driven Repayment Plan Student Loan Forgiveness
While not immediate forgiveness, you may be eligible to have your debt forgiven after 10, 20, or 25 years of qualifying payments made on the debt. This forgiveness is based on your income over that period of time.
Public Service Loan Forgiveness (PSLF)
Another way to forgive student loans is one of the more common methods known as PSLF. To qualify, you must make at least 120 payments and be actively employed with a qualifying employer such as a government organization or non-profit entity.
State-Based Student Loan Forgiveness Programs
While most debt forgiveness is federally mandated, there are some state programs that allow you to quit making those pesky student loan payments. Eligibility often includes one of the aforementioned types of programs at the state level such as PSLF.
Your Student Loans May Be Eligible for Student Loan Forgiveness!
Now that you know how to qualify for student loan forgiveness you can start saving money and get out of debt faster! Take into consideration that your student loan forgiveness may be taxable so it’s important to pay close attention to all of the fine print in your negotiations.
If you liked this article and you want to know more about a healthy work/life balance, check out the rest of our blog for some helpful tips.