Different discharge and forgiveness programs for federal student loans are offered by the U.S. Department of Education. You can be eligible to have all or some of your student loans discharged or forgiven in some situations. However, the terms for student loan cancellation, forgiveness, or discharge are implemented correspondingly. If you’re interested in applying for this loan forgiveness program, then this article is for you. In this article, we have compiled the best 10 student loan forgiveness programs to apply for. Read on to find out the best program for you.
How Does it Work?
How do student loan forgiveness programs work? First of all, you need to be qualified for this program before you can take any steps. Your qualifications depend on different circumstances. For instance, fraud by the college you attended, the type of work you do, and your disability status.
Meanwhile, the amount of student loan forgiveness programs for federal loans is higher than for private student loans. If you are experiencing challenges making private loan payments, there are loan modifications that you can make through your repayment assistance programs or lender. In addition to this, forgiveness programs perform differently depending on cancellation, forgiveness, or discharge programs.
For certain public service loan forgiveness, you must make monthly payments on time before applying for forgiveness. But in most cases, you will need to present proof of eligibility to meet some qualifying requirements.
10 Student Loan Forgiveness Programs
For students who would like loan forgiveness, discharge, or cancellation, here are the best 10 student loan forgiveness programs to apply for:
- Public service loan forgiveness.
- Perkins Loan Cancellation.
- State-sponsored repayment assistance programs.
- Total and permanent disability discharge.
- Military Student Loan Forgiveness and Assistance.
- Teacher Loan Forgiveness.
- Income-driven Repayment Forgiveness.
- Student Loan Forgiveness for Nurses.
- Closed School Discharge.
- Health Professional Loan Repayment.
Public Service Loan Forgiveness
Nonprofit and government employees are eligible for the public service loan forgiveness program. To qualify, after making 120 loan payments, you can have your loan balance forgiven and tax-free.
Perkins Loan Cancellation
The Perkins loan cancellation is one of the student loan forgiveness programs that I will recommend to you. As a borrower of this type of loan, you can have 100% of your loans canceled, especially if you have worked in public service for 5 years.
State-Sponsored Repayment Assistance Programs
To be qualified for the state-sponsored repayment assistance programs, you need to be a licensed doctor, lawyer, teacher, or nurse. Moreover, if you are in a qualified state, you can use this student loan forgiveness program positively. But if you want to find out if you are eligible, contact your higher education department in your state.
Total and Permanent Disability Discharge
This student loan forgiveness program is for people who cannot work because of a physical, mental, or permanent disability. You may be able to cancel your student loan debt if you meet the qualification criteria. More importantly, you need to provide proof of your disability to qualify for the total and permanent disability discharge.
Military Student Loan Forgiveness and Assistance
People who are military personnel in the Air Force, Coast Guard, Army, National Guard, and Navy can qualify for loan forgiveness programs. For instance, in the National Guard, qualified soldiers can get up to $50,000 to offset their student loans.
Teacher Loan Forgiveness
One of the top 10 student loan forgiveness programs is the teacher loan forgiveness program. But if you want to be eligible, you need to have taken out the loan after October 1, 1998, be employed in a low-income school and have worked for 5 years consecutively. If you are lucky, you can get $17,500 in loan forgiveness.
Income-Driven Repayment Forgiveness
Income-driven repayment forgiveness is another student loan forgiveness program that you may qualify for. Furthermore, the four main income-driven repayment plans offered enable borrowers to round off their loan amount to the percentage of their income monthly.
Student Loan Forgiveness for Nurses
As a nurse who has a record of student loan debt, there are different options available for you to get student loan forgiveness. For example, Perkins loan cancellation, public service loan forgiveness, and the Nurse Corps loan repayment program. These programs also cover at least 85% of your debt.
Closed School Discharge
The closed school discharge is one of the student loan discharge programs. So, to be eligible for this program, you must have been enrolled in a school and have left within 120 days. It would help if you had also left without a degree. If you meet the requirements, get in touch with your loan servicer or provider to begin the application procedure.
Health Professional Loan Repayment
One of the 10 student loan forgiveness programs is Health Professional Loan Repayment. For people working in a qualifying healthcare field, you can be eligible for student loan assistance through organizations like the National Institutes of Health or the National Health Service Corps. Besides, the National Institutes of Health offer up to $50,000 per year as loan assistance to healthcare professionals. While the National Health Service Corps offers $120,000,.
Before applying for federal forgiveness, discharge, or cancellation programs, remember that it is free when you use the Department of Education. But be sure to look out for scammers or suspicious activities before proceeding.