How do I get student loan forgiveness? More importantly, how do you know if you qualify? In this guide, we’ll discuss the best ways to get student loan forgiveness and avoid scams that make it look like you can get forgiven, but don’t help you at all.
What is the Federal Student Loan Forgiveness?
Many student borrowers wonder what exactly Federal Student Loan Forgiveness is and whether they qualify for it. Federal student loan forgiveness is an option for those who have had careers in public service, including teachers, nurses, law enforcement officers, and more. The program can help many borrowers save money over time and ease some of their financial burdens. Read on to learn more about federal student loan relief for students working in certain fields.
Overview of the 3 main types of repayment plans
Income-Based Repayment Plans, sometimes referred to as Income-Based Repayment Plans, are specifically designed for borrowers who want or need their monthly payments to be lower than they would be under a standard plan. . These three main types of income-based reimbursement plans – Income-Based Reimbursement (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE) – base all of your monthly payments on 20% of your income Discretionary Income or 10% of your Discretionary Income. Under IBR and PAYE, if you experience partial financial hardship, your monthly payment is further reduced. The REPAYE plan has an even more generous structure where you pay 10% of your discretionary income AND get loan forgiveness after 20 years.
The Direct Consolidation Loan Program
If you have multiple student loans, consolidate them into one direct consolidation loan through your lender or through FederalStudentAid.gov. Having just one loan means you will only have one payment per month, which can make your life easier when paying off these loans. You’ll also get an extended repayment period, up to 10 years for all loans except Parent PLUS taken out before October 7, 1998. Depending on how much you owe and your repayment plan, it might be worth it just for that. only.
Eligibility Requirements for Civil Service Loan Cancellation
If you want to be eligible for Civil Service Loan Forgiveness, you will need to prove that your student loans are eligible. Civil service loan forgiveness is only available for federal student loans taken out after October 1, 2007 and before October 1, 2017; moreover, it can only be used for eligible reimbursement plans. If you repay your loans through income-based repayment (IBR), income-contingent repayment (ICR), pay-as-you-earn (PAYE), or pay-as-you-go As You Earn Revised (RPAYE), or any other income-based repayment plan, you are eligible for loan forgiveness.
Accreditation, Certification and Licensing Requirements
Federal authorities – both federal and state – have set out certain conditions that you will need to meet in order to qualify for loan forgiveness. The first is accreditation. Your school must be regionally or nationally accredited, not just state accredited. This means that you are attending an institution of higher education that has been approved by an organization whose job it is to ensure that its member schools produce graduates who can compete in today’s marketplace.
The Teacher Loan Forgiveness Program
If you are a teacher or have been in the past, you may be eligible for student loan forgiveness. Only direct federal loans are eligible, but they account for nearly 90% of all student loans issued. To be eligible, teachers must have been employed full-time by an elementary or secondary school (middle and high schools) that serves low-income families for at least five consecutive years. Teachers must also be current on their federal loan payments when filing a claim with their servicer; up to $17,500 will be forgiven each year of service through 2019. This only applies to new borrowers after 2007 – it will not apply retroactively to anyone who borrowed before that date.
State Requirements for Civil Service Loan Cancellation
PSLF offers federal student loan forgiveness to public servants who have made 120 monthly payments on time while working full-time in a nonprofit or government organization. Individuals on Perkins Loans may be eligible if they hold an eligible position in public office after October 1, 2007. Repayment plans must be taken under one of these five repayment plans: Revised Repayment Plan Pay As You Earn (REPAYE), income-based repayment plan (IBR), pay-as-you-go repayment plan (PAYE), income-based repayment plan (ICR) and standard repayment plan (10 years).