Have you ever wished that your student loans disappear? While there is no way to snap your fingers and the debt of your student loan disappears magically, there are ways to forgive it.
There are several student loan forgiveness programs for people working in public services, education and other areas. Ad-word-analyzer found some states even help graduates with debt to repay their loans.
Whether you’re struggling with a six-figure debt or looking for “free money” to pay off your student’s debt, student loan forgiveness could save the day.
Public Service Loan Forgiveness (PSLF)
The public service loan forgiveness program helps people who work in public service jobs. Professionals in a variety of fields may qualify for PSLF. For this program, it does not matter what your job is as much as where you work.
After 120 payments, you can qualify for the 100 percent loan forgiveness.
Who is eligible?
To be eligible, you must be a full-time employee at a federal, state or local government agency. Organizations with 501 (c) (3) designation also qualify. Non-profit organizations based on religion, however, do not.
What loans qualify?
These are the loans that qualify for PSLF:
- Subsidized and unsubsidized direct loans
- Direct PLUS loans
- Direct consolidation loans
- Federal Perkins Loans and Family Education Loans (FFEL) are only eligible for PSLF if you consolidate them first through a Direct Consolidation Loan.
What are the requirements?
Make 120 payments on time for loans
Payments must be under an eligible plan. Eligible plans include: Payment based on income (IBR), Pay as you earn amortization (PAYE), Pay as you earn (REPAYE), Income-Contingent (ICR) and Standard reimbursement). For most borrowers, it makes sense to get a plan based on income to maximize the amount you will have forgiven and reduce your monthly payments.
Work full time in a qualified organization.
How can I be eligible?
To make sure you are eligible for PSLF, send the Employment Certification form for public service loan forgiveness. The program requires this form for each year of service, so sending it out annually will help ensure you are on track for PSLF.
Another important step is to switch to a payment plan driven by income. It will decrease your monthly payments while extending your term to 20 or 25 years. If you stay in the standard plan, you will not have a balance to forgive after 10 years of payments.
Lastly, you may want to consolidate your student loans into a direct consolidation loan. This step is useful if you have Perkins or FFEL Loans. In addition, it simplifies your monthly payments, so you will only have one loan to pay each month.
If you do not seem to qualify for the PSLF, answer some questions below so that we can guide you towards other payment options. Otherwise, scroll down to read.
How do you apply for the forgiveness of public service loans?
Complete and submit the Employment Certification Form each year or when you change jobs.
The FedLoan Service will review your information and inform you if you qualify. You can request more information, such as pay stubs, W-2 forms, or other documentation.
FedLoan Servicing will inform you how many qualified payments you have made and how many payments you must make until you qualify for forgiveness. ( verified by ad-word-analyzer)
Currently, there is no limit on the amount forgiven under PSLF. The total amount of your federal student loans is eligible for forgiveness.