For the students wanting to work in specific jobs or meet other requirements for some years, Student Loan Forgiveness can be a big relief, and it leads to tons of thousands of dollars in savings. The key to use Student Loan Forgiveness is understanding how your program operates and also following the directions closely.
What is Student Loan Forgiveness?
Usually, Student Loan Forgiveness refers to a variety of programs which can eventually remove some or all of your student loan debt. Those programs have their own unique requirements and approval standards. Some of them are available only for specific professions, such as teachers and military. Not all forgiveness programs are going to work for every student, but most borrowers are able to discover a program to help them get some of their student loan debt wiped away.
How to get Student Loan Forgiveness?
Despite the rules vary, qualifying for Student Loan Forgiveness usually needs you to:
- Have a specific type of the student loan (most programs accept only federal student loan borrowers).
- Work in a specific job, or a low income area.
- Agree to work for a specific length of the time.
- Make payments on-time on your student loans while you are working toward forgiveness.
In order to qualify for loan forgiveness with your selected plan, you have to ensure that you understand the ins and outs of your plan and what it takes to qualify. You are able to contact the administrator of your student loan plan if you have any questions.
Some things to consider before applying Student Loan Forgiveness
There are some things that you need to consider when applying for Student Loan Forgiveness. Student loan forgiveness programs are able to help you save money on student loan repayment in the long run, however there are some pitfalls to watch out for.
Here are some factors to consider before applying to one of these programs.
- Scams are out there.
Almost every industry has its share of scammers, and the student loan industry is no exception. You have to be careful of debt relief companies which promise to make your loans disappear. They cannot do anything that you would not be able to do on your own, however they are going to charge you money anyway.
- Loan Forgiveness usually does not apply to private student loans.
You have to know that most forgiveness programs are for student loans backed by the federal government. For those who have mostly private student loans, then these forgiveness programs may be harder to discover.
- Several forgiveness programs take a decade or longer to complete.
You should consider whether participating in a forgiveness program is worth it in the long run. With some programs, you will need to make payments for 10 to 25 years. If you have a good income, so you will be better off paying off your loans as quickly as possible on your own.
- The Student Loan Forgiveness is not a choice if you have already defaulted on your loans.
After you default on your loans, you will lose all federal protections and benefits.
Student Loan Forgiveness programs
Usually, programs of Student Loan Forgiveness are depending on the service in a particular job, like a job in the nonprofit sector or a qualified public service position. The programs need a time commitment before your debt is discharged. For note: You will be able to see your debt after 5 to 25 years.
Here are some Student loan forgiveness programs:
- Public Service Loan Forgiveness (PSLF)
- Teacher Loan Forgiveness
- Nurse Corps Loan Repayment Program
- Income-driven repayment plans
- Student loan forgiveness for military members
- Forgiveness programs for doctors
- Loan forgiveness programs for lawyers
- Loan forgiveness programs for AmeriCorps
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) refers to graduates who want to work in a qualified public service position for a period of 10 years. This program needs full-time employment with a United States federal, state, local or tribal government, or a not-for-profit organization, even though your time does not have to be spent working for the same employer.
You have to create 120 on-time payments on an income-driven repayment plan to qualify. Also, you must have Direct Loans or a Direct Consolidation Loan for your monthly payments to count. If you are able to meet all the requirements for this program, then you are able to have your remaining loan balance forgiven after 120 qualifying payments.
Whom do you contact with the questions about Public Service Loan Forgiveness (PSLF)?
You are able to check out the Public Service Loan Forgiveness (PSLF) page for answers to questions about the program. To learn more about the application process, simply you are able to read information related to the PSLF Form page. When you are ready to apply, we are going to suggest you use the PSLF Help Tool to start your form. If you still have any questions, please contact FedLoan Servicing by calling at 1-855-265-4038.
How do you apply for Public Service Loan Forgiveness (PSLF)?
If you are working toward Public Service Loan Forgiveness (PSLF), you have to complete and submit the Public Service Loan Forgiveness (PSLF) & Temporary Expanded PSLF (TEPSLF) Certification & Application (PSLF form) annually or when you change the employers. If you have created 120 qualifying payments, you have to fill out and submit this same PSLF form. We highly suggest you to use the PSLF Help Tool to start your form.
To qualify for PSLF:
- You have to be employed by a United States federal, state, local, or tribal government or not for-profit organization (federal service includes United States military service).
- You have to work full-time for that agency or organization.
- You must have Direct Loans (or consolidate other federal student loans into a Direct Loan).
- You have to repay your own loans under an income-driven repayment plan.
- You have to create 120 qualifying payments.