Getting out of your federal student loan debt is made easier by the Loan Forgiveness Programs offered by the government. These programs offer a way to eliminate your student loan debt once you have made satisfactory repayments.
Public Service Loan Forgiveness
Whether you’ve been a public service worker for many years or you’re new to the field, you might be eligible for the Public Service Loan Forgiveness Program. A program that was created 15 years ago, it’s designed to help federal student loan borrowers get debt relief.
To qualify for the program, borrowers must work full-time for a qualifying employer, meet certain program requirements and make 120 qualifying payments. These payments can be in the form of a lump-sum payment, or several payments each year, as long as they are made on time and in full.
Applicants may also be eligible for the federal student loan forgiveness program if they work for a 501(c)(3) nonprofit organization. However, a nonprofit organization must provide qualifying public services, which include teaching hospitals, law enforcement and emergency management. A nonprofit must also complete an employer certification form.
The US Department of Education has a Public Service Loan Forgiveness Help Tool that can be used to find a qualifying employer and help with your application. You can also contact your elected representative if you want to learn more about the program.
Unlike standard repayment plans, income-driven repayment plans offer lower monthly loan payments. However, borrowers must recertify their income and family size every year, and they may also need to submit a new application.
There are many different types of income-driven repayment plans. Plans vary in terms of how much they pay each month, the length of repayment, and the types of loans eligible. Some plans cap monthly payments regardless of income, and others offer payments as low as zero. These options may be ideal for low-income borrowers, though the pros and cons vary from person to person.
To qualify for income-driven repayment plans, you must be making payments on your loans for at least 20 years or 25 years, and you must be making payments on a loan that is not delinquent. Some plans may be eligible for Public Service Loan Forgiveness (PSLF), and other plans may be eligible for forgiveness after a certain amount of time has passed.
Teacher Loan Forgiveness Program
Depending on the state, teachers may qualify for loan forgiveness. Many states offer multiple forgiveness programs. However, there are specific criteria that must be met in order to qualify for all these programs. Some of these programs may have a higher benefit than others. Despite this, you should always be aware of the various options available.
Teachers who qualify for the Teacher Loan Forgiveness Program must have been employed as a full-time teacher for at least five consecutive years. These years must have occurred after the 1997-98 academic year.
In addition, teachers in certain subject areas may also qualify for loan forgiveness. For example, Secondary Mathematics and Science Teachers may qualify for up to $5,000. Special Education Teachers may qualify for up to $17,500. These teachers must also have a bachelor’s degree and a full state certification.
Applicants must fill out the Teacher Loan Forgiveness Application PDF. They will also need to provide their employment details and personal information. The application will then be submitted to their loan servicer. The loan servicer will then determine if they qualify for the program. They will be notified of their approval or denial within 45 days. If their application is approved, they will receive a payment for the amount of the forgiveness. If they are denied, they will receive a formal explanation.
Discharge due to death
Having student loan debt is a financial burden that can be difficult to deal with. Luckily, there are many resources available to help you deal with the situation. However, you may also find it difficult to determine how to discharge your debt when you pass away.
Whether you are a parent with a PLUS loan or a student with a federal loan, you may qualify for a death discharge. The process of getting a discharge depends on the lender. You can check with your lender for specific information on what documentation you will need to submit.
If you are interested in learning more about how to discharge a student loan when you pass away, you should contact your lender. If you are considering refinancing, you may want to find out whether your current lender offers a death discharge. You can also ask about term life insurance to cover your student loan debt.
Discharge due to death is not automatically offered by all private lenders. However, many of them have special death forgiveness policies.