How To Get Your Student Loans Forgiven:
There are three ways to have student loans forgiven and none of them are easily attainable. The first is based on the type of career you choose. The second is based on you how many years you make on-time payments while enrolled in a qualifying repayment plan. The last one requires a set of extraordinary circumstances that rarely come into play, but nonetheless could result in loan forgiveness. The first two are available for federal student loans only and the last one is achievable for federal or private student loans.
Be aware that there is an important difference between having a loan “discharged” and having one “forgiven.” Loan forgiveness typically is given to someone who performs works at a qualified job, such as teaching in a high-need area, for a specific length of time and has the amount left on their student loan forgiven. Loan discharge is rare, but can be granted to borrowers who can’t repay the loan for a variety of reasons such as death, disability, fraud, identity theft and in very scarce circumstances, bankruptcy.
Public Service Loan Forgiveness Program (PSLF) was created by the College Cost Reduction and Access Act of 2007 to lessen the burden of student loans for highly-qualified graduates and encourage them to pursue careers in the public service sector.
This forgiveness option is available for Direct Federal Student Loans; Direct Plus loans and Direct Consolidation loans. Private student loans are not eligible for Public Service Loan Forgiveness. To receive loan forgiveness under this program, you must be a full-time employee (at least 30 hours per week) in public service job and make 10 years of on-time monthly payments (120) after consolidating your federal loans in a qualified repayment program.
This forgiveness option applies solely to Direct Federal Student Loans. Private student loans are not eligible for Public Service Loan Forgiveness. To receive loan forgiveness under this program, you must be a full-time employee (at least 30 hours per week) in public service job and make 10 years of on-time monthly payments (120) after consolidating your federal loans in a qualified repayment program.
Public Service Jobs Qualifying for Public Service Loan Forgiveness:
Repayment Plans Qualifying for Public Service Loan Forgiveness
To apply for PSLF, you must fill out a Employment Certification Form every year and make pay stubs, W-2 forms or other documentation available as requested.
The first wave of student loan borrowers eligible for loan forgiveness met their final required payment in October of 2017. News stories say that many of the people who thought they had qualified, were denied loan forgiveness because they didn’t meet the prescribed requirements.
According to a 2017 report from the Consumer Financial Protection Bureau, more than 550,000 borrowers are expecting to have their loans forgiven. If you are enrolled in the program, you should track your progress at least once-a-year to be certain you are meeting all requirements.
However, President Donald Trump has proposed eliminating the program to anyone who hasn’t enrolled by July 1, 2018. Congress hasn’t voted on that proposal as of the Spring of 2018.
There are three ways to have student loans forgiven and none of them are easily attainable. The first is based on the type of career you choose. The second is based on you how many years you make on-time payments while enrolled in a qualifying repayment plan. The last one requires a set of extraordinary circumstances that rarely come into play, but nonetheless could result in loan forgiveness. The first two are available for federal student loans only and the last one is achievable for federal or private student loans.
Be aware that there is an important difference between having a loan “discharged” and having one “forgiven.” Loan forgiveness typically is given to someone who performs works at a qualified job, such as teaching in a high-need area, for a specific length of time and has the amount left on their student loan forgiven. Loan discharge is rare, but can be granted to borrowers who can’t repay the loan for a variety of reasons such as death, disability, fraud, identity theft and in very scarce circumstances, bankruptcy.
Public Service Loan Forgiveness Program (PSLF) was created by the College Cost Reduction and Access Act of 2007 to lessen the burden of student loans for highly-qualified graduates and encourage them to pursue careers in the public service sector.
This forgiveness option is available for Direct Federal Student Loans; Direct Plus loans and Direct Consolidation loans. Private student loans are not eligible for Public Service Loan Forgiveness. To receive loan forgiveness under this program, you must be a full-time employee (at least 30 hours per week) in public service job and make 10 years of on-time monthly payments (120) after consolidating your federal loans in a qualified repayment program.
This forgiveness option applies solely to Direct Federal Student Loans. Private student loans are not eligible for Public Service Loan Forgiveness. To receive loan forgiveness under this program, you must be a full-time employee (at least 30 hours per week) in public service job and make 10 years of on-time monthly payments (120) after consolidating your federal loans in a qualified repayment program.
Public Service Jobs Qualifying for Public Service Loan Forgiveness:
- Any job in a government organization at the federal, state, local or tribal level
- Not-for-profit organizations that are designated tax-exempt under Section 501(c)(3)
- Other not-for-profit organizations that are not tax-exempt but provide a qualifying public service
- Full-time AmeriCorps and Peace Corps volunteers
Repayment Plans Qualifying for Public Service Loan Forgiveness
- Income-Based Repayment Plan (IBR)
- Income-Contingent Repayment Plan (ICR)
- Pay As You Earn Repayment Plan (PAYE)
- Revised Pay As You Earn Repayment Plan (REPAYE)
To apply for PSLF, you must fill out a Employment Certification Form every year and make pay stubs, W-2 forms or other documentation available as requested.
The first wave of student loan borrowers eligible for loan forgiveness met their final required payment in October of 2017. News stories say that many of the people who thought they had qualified, were denied loan forgiveness because they didn’t meet the prescribed requirements.
According to a 2017 report from the Consumer Financial Protection Bureau, more than 550,000 borrowers are expecting to have their loans forgiven. If you are enrolled in the program, you should track your progress at least once-a-year to be certain you are meeting all requirements.
However, President Donald Trump has proposed eliminating the program to anyone who hasn’t enrolled by July 1, 2018. Congress hasn’t voted on that proposal as of the Spring of 2018.