Best Student Loan Forgiveness Programs

If you’re curious about discovering the array of programs available, let’s begin!

Many are aware that numerous individuals who have completed college are joining the workforce with a significant amount of student debt.

In 2019, data from the Federal Reserve showed that most adults burdened with college debt owed amounts ranging from $20,000 to $24,999.

Carrying such a heavy load can be overwhelming! However, rest assured, there are solutions that can assist in lightening this weight.

Dealing with considerable debt can feel like a lot to handle, but the good news is that while federal loans are eligible for loan forgiveness, private loans do not offer this option. However, meeting the necessary criteria is within reach.

Explore the different forgiveness programs offered and learn about the application procedure.

Federal Program for Loan Forgiveness (FPLF)

One of the most well-known federal student loan forgiveness programs is the Public Service Loan Forgiveness (PSLF) initiative.

In order to qualify, individuals must be employed on a full-time basis by an eligible employer, which can include:

Government bodies at any level, including military service;

Tax-exempt 501(c)(3) nonprofits;

Other nonprofits engaged in public services such as emergency management, law enforcement, or public health.

In order to qualify for the forgiveness of the outstanding loan balance, applicants must meet the following criteria:

Enrollment in the Direct Loan Program;

Making 120 qualifying payments under an income-driven repayment (IDR) plan;

Full-time employment with an eligible employer;

It is important to note that positions with for-profit entities, partisan political organizations, or labor unions do not qualify for PSLF.

Program for Educator Loan Forgiveness

Educators who have taken out student loans may be eligible for the Teacher Loan Forgiveness Program, which offers up to $17,500 in debt relief. To qualify, certain criteria must be met:

Teaching full-time for five consecutive years at a low-income school or educational agency;

Possession of a bachelor’s degree and state certification as a teacher;

Direct involvement in classroom teaching;

Tutors or instructors lacking state certification are ineligible for this program.

Program for Forgiving Nursing Loans

Nurses also have the chance to take advantage of forgiveness initiatives such as the Nurse Corps Loan Repayment Program, which can help with up to 85% of their nursing school debt.

To be eligible, applicants need to possess a valid RN license, be in an advanced practice registered nurse role, or work as a nurse faculty member in a facility experiencing a severe nursing shortage for at least two years.

Assistance with Debt Relief for Healthcare Workers

One way to ease the burden of medical school debt is by taking advantage of programs such as:

National Health Service Corps Loan Repayment Program;

Indian Health Service Loan Repayment Program;

State Student Loan Forgiveness Programs;

NHSC Rural Community Loan Repayment Program;

NHSC Students-to-Service Loan Repayment Program.

When individuals choose to serve in regions lacking sufficient healthcare professionals, they may be eligible to have a portion of their medical school debt, up to $50,000, forgiven. This not only benefits the individuals but also makes a meaningful contribution to these underserved communities.

Cancellation of Perkins Loan

Even though the Perkins Loan Program ended in 2017, individuals are still eligible to receive loan forgiveness by working in designated public service fields like education, law enforcement, nursing, medical technology, or the military.

Payment forgiveness happens gradually over a period of five years, instead of all at once.

The potential impact of these forgiveness programs is substantial, as they may greatly decrease, or even eliminate, student debt, especially for those working in public service or healthcare.

Debt Relief for Service Members

Members of the armed forces are provided with beneficial options for loan forgiveness, such as eligibility for the Public Service Loan Forgiveness (PSLF) initiative.

Moreover, there are alternative options available to ease the financial strain of student loans, including:

Reductions in student loan interest rates via the Servicemembers Civil Relief Act (SCRA);

Qualification for loan deferment, forbearance, or potential suspension or cancellation of interest during active duty;

Each military branch offers specific aid and forgiveness programs tailored for its members;

It is imperative to note that available options can vary based on individual status, circumstances, and military branch, with some benefits applicable retroactively.

Steps to Take if You are Ineligible for Loan Forgiveness

After investigating loan forgiveness programs and finding out that you are not eligible, there are still other options to explore. Here are some tips to consider:

Discover Options for Refinancing Your Loan

If you possess a strong credit history or have a relative willing to co-sign, refinancing might provide a game-changing solution.

Enhance the Frequency of Payments

If it fits within your budget, you may want to explore the option of making loan payments every two weeks instead of monthly. By making 13 payments per year instead of the usual 12, you can accelerate the process of paying off your debt.

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