The latest statistics show that 45 million Americans owe an estimated $1.7 trillion in student loans as of 2022. In these challenging times where recession is looming, so many people are struggling to repay their student loans, causing student loan forgiveness programs to become so popular as of late.
Some people had to rely on online lending programs from institutions like MoneyAsap.com to sustain themselves. You can request a payday loan or installment loan, depending on how soon you can repay the loan amount in full.
However, its growing popularity got so many people wondering: what is student loan forgiveness, and how do you Qualify for Student Loan? This article will discuss the numerous student loan forgiveness programs and the eligibility for each.
What Is Student Loan Forgiveness?
Student loan forgiveness may seem like an urban legend for many college graduates, but it is real and can be a lifesaver for those struggling to repay their loans. Student loan forgiveness programs can help borrowers who struggle to make monthly payments.
The most prominent type of program is the Public Service Loan Forgiveness Program. Other programs are also available for teachers, nurses, and military members. If you struggle to repay your student loans, look into these programs to see if you qualify.
How Do You Qualify for Student Loan Forgiveness?
There are a few ways to qualify for student loan forgiveness. If you might be eligible for student loan forgiveness, contact your lender or servicer to get more information.
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Income-driven repayment plans make your monthly student loan payments more affordable. There are four different types of income-driven repayment plans: Income-Based Repayment Plan (IBR), Pay As You Earn Repayment Plan (PAYE), Revised Pay As You Earn Repayment Plan (REPAYE), and Income-Contingent Repayment Plan (ICR). Your monthly payments will be based on family size and income if you qualify for this repayment plan.
You need to be in partial financial hardship to qualify for an income-driven repayment plan. This means that the monthly amount you would be required to pay on your student loans is lower if you’re under an income-driven repayment plan than the Standard Repayment Plan.
Borrower Defense to Repayment
This student loan forgiveness program is for borrowers whose schools have misled or misconducted them. If you qualify for this program, your student loan will be forgiven, and you will not be required to make any more payments.
To qualify for the borrower defense to repayment program, you must prove that your school misled you, misrepresented the nature of their program, or engaged in other deceptive practices.
Total and Permanent Disability
This discharge program is for borrowers who cannot work anymore because of an illness or injury. To qualify, you must submit a filled-out TPD discharge application. You’ll also be required to submit documentation showing your total and permanent disability from one of the following sources: the VA, the SSA, or a physician. You can contact the TPD servicer, Nelnet, via email or phone.
Public Service Loan Forgiveness
This student loan forgiveness program is for borrowers who work in public service. To qualify for this program, you must have Direct Loans, work in a qualifying company, and have made 120 qualifying monthly payments. Qualifying public service jobs include teachers, lawyers, librarians, social workers, doctors, nurses, military personnel, and more. Contact your loan service to get started if you’re eligible for this student loan forgiveness program.
Applying for student loan forgiveness can seem daunting, but it is worth it if you think you might qualify. Be sure to research and contact your loan servicer if you have any questions. These programs were created to help borrowers struggling to make their monthly payments, so don’t be afraid to reach out for help.