Having student loan debt piling up can be stressful, especially if you don’t have the income to pay off your debt. Unpaid debt allows you to be contacted by the borrower more often. Of course, it makes you confused and may try finding another loan to pay off your debt.
Before looking for another loan, of course there are other alternatives that you can choose to get rid of your student loan debt. However, opening a new loan to close an old loan is not recommended, as it will add to your burden even more. So, what can you do to get rid of your student loan debt?
Can You Get Rid of Your Student Loan Debt Without Paying?
You cannot really get rid of your student loan debt without paying, instead there are some forgiveness options to take if you are qualified. Through some forgiveness programs, you will get the best kind of student loan debt relief, but it’s so hard to get.
To get student loan debt forgiveness, there are a bunch of ways available, including:
- Total and permanent disability
- Income-driven repayment plans
- Borrower defense to repayment rule
- Public service loan forgiveness
- Teacher loan forgiveness
- State programs for student loan forgiveness
In order to get the student loan debt forgiveness, you typically need to complete some certain requirements or also meet qualifications. However, most student loan forgiveness is not automatic.
Requirements to Get Student Loan Forgiveness
Certainly, each student loan forgiveness program will have different requirements. If you think you’re qualified, you can contact your loan services to apply student loan forgiveness. Some loan programs may allow you to contact the school that made the loan or the loan servicer the school has designated.
Here are some requirements that you should meet depending on student loan forgiveness programs:
- Total and permanent disability
To be qualified for this forgiveness program, make sure you have total and permanent disability. To apply for this forgiveness program, you can apply for student loan cancellation, because of a total and permanent disability.
- Income-driven repayment plans
You will be qualified for income-driven repayment plans if you have Direct Loans. If you have Perkins Loans or FFEL Loans, you may have to consolidate student loans into Direct Consolidation Loans.
To get this loan forgiveness, make sure you are 20 years old or 25 years of monthly student loan payment. You can choose one of four income-driven repayment plans, including:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
To apply for an income-driven repayment plan forgiveness program, you just simply contact your student loan servicer.
- Borrower defense to repayment rule
To be qualified for this forgiveness program, you may have to demonstrate that your school violated state law related to your student loans or educational services provided. You will be able to get partial student loan cancellation or total student loan cancellation, with borrower defense to repayment forgiveness program. You can apply for this forgiveness program, because of borrower defense to repayment.
- Public service loan forgiveness
With a public service loan forgiveness program, you will get student loan cancellation to federal student loan borrowers who are enrolled in an income-driven repayment plan. To be eligible for this forgiveness program, make sure you work for a qualified public service or non-profit employer.
You also need to make 12 monthly student loan payments and ensure to meet other requirements. To apply for this forgiveness program, you need to complete the Public Service Loan Forgiveness. It’s important to note, you need to submit this form annually or when you change employers.
- Teacher loan forgiveness
You will be eligible to gain up to $17,000 of student loan forgiveness if you teach for five complete and consecutive academic years in a low-income school or educational service agency. Make sure to meet other requirements.
For example, you will gain total student loan cancellation with public service loan forgiveness if you plan to teach for at least 10 years. You can apply for student loan cancellation through teacher loan forgiveness.
- State program for student loan forgiveness
The requirement to get this student loan forgiveness will be different depending on your program and state. To apply for this student loan forgiveness, you can contact your state’s department of education.
How If Your Application Was Approved?
If you qualify for student loan cancellation, forgiveness or discharge of the full amount of your loan and your application was approved, you will no longer be obligated to make loan payments.
If you qualify for cancellation, forgiveness or discharge of only a portion of your loan, you will still be responsible for repaying the remaining balance. If you qualify for certain types of loan discharge, you will receive a refund of some or all of the payments that you made on the loan.
Then, if your loan was in default, the discharge probably removes the default status. Last, if you do not have other defaulted loans, you will regain eligibility for federal student aid.
How If Your Application Was Denied?
What you should do when your application is denied is the opposite when your application is approved. That means, you will still be responsible for repaying your student loan, according to the terms of the promissory note that you have signed.
If you have a Direct Loan or FFEL Program loan, you can speak with the loan servicer about repayment options. If your loan is in default, you can visit Getting Out of Default to find out the guide of how to start repaying your loan and your options for getting out of default.
If you trust that your application was denied because of any errors, you may need to contact your loan servicer for more information.
Okay, those are some programs that allow you to get student loan forgiveness, the requirements you should meet to apply and also what you should know when either your application was approved or your application was denied.
