Student Loan Forgiveness
For far too many graduates, student loan debt is a very real and burdensome issue that hinders the process of laying the groundwork for a prosperous adult life. Fortunately, there are a number of student loan forgiveness programs that can help alleviate the stress that comes with high levels of student loan debt. This article will discuss the eligibility requirements and benefits of many of the more common federal student loan forgiveness programs that are presently available.
The Public Service Loan Forgiveness Program (PSLF)
The PSLF is available to full-time employees (30 hours per week minimum) of federal, state, and local government agencies, as well as employees of 501(c)(3) non-profit organizations, as well as non-profits that provide qualifying public services, and Peace Corps volunteers. Under the PSLF, loan forgiveness is available for student loans issued under the William D. Ford Federal Direct Loan program.
These include Direct Subsidized and Unsubsidized Student Loans, Direct PLUS loans and Direct Consolidation loans. There are currently no limits on the amount that can be forgiven, and the forgiven amount is not considered taxable income. However, do note that private student loans are not eligible for forgiveness under the PSLF.
Apply and Qualify for the PSLF
Requirements for PSLF loan forgiveness include a full ten years of on-time monthly payments (120 payments), aforementioned full-time public service employment at a qualified employer, and participation in a qualified income-based repayment plan. The four types of qualified repayment plans are: Income-based Repayment (IBR); Income-Contingent Repayment (ICR); Pay as You Earn Repayment (PAYE); and Revised Pay as You Earn Repayment (RPAYE).
Applicants must also complete a PSLF Employee Certification Form each year and maintain accurate employment documentation such as pay stubs and W-2 forms in the event that they are requested. For further information, please consult the following page: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
Student Loan Forgiveness under Income-Based Repayment Plans
The four qualified income-based repayment plans listed above also function independently of the PSLF as forms of student loan forgiveness that are based on repayment history but do not require qualified public service full-time employment. However, the time frame for these various repayment plans is considerably longer than that of the PSLF.
For example, under the PAYE and RPAYE, twenty years of on-time monthly payments (240 payments) are required, with PAYE allowing for the lowest monthly payment available, as it is calculated based upon the establishment of financial hardship. After twenty years, loan forgiveness will be granted, though the amount forgiven is considered taxable income. Under the IBR and ICR, a debtor can qualify for loan forgiveness only after twenty-five years of on-time monthly payments (300 payments). Again, forgiveness applies only to Federal student loans and not to private loans, and the amount forgiven will be considered taxable income.
Federal Perkins Loan Cancellation
This program is particularly useful for full-time educators including teachers, librarians, speech language pathologists and professionals within HeadStart programs. Additionally, full-time firefighters, nurses, members of law enforcement and the military also can qualify for Perkins Loan Cancellation.
Under this program, it is possible to have 100% of a remaining Perkins loan obligation forgiven within five years, with forgiveness granted at 15% in years one and two, 20% in years three and four, and the remaining 30% in year five. Since Perkins loans are administered by the school and not the federal government, applicants contact the student loan office of the issuing institution for proper application forms.
Are you in debt? we can help
Professional and focused on facts and truth not hype. Excellent. We want to know facts.
Great work very professional and great updates. Communication is excellent.
Excellent. Also each time i call there they treat me with respect even though they are probably thinking jerk . You sure have made mess of your life. but they have been taught to smile smile smile. this...
Scott W O'Neill
Thanks for all your help and negotiations.
Thanks for the update! I have faith in you guys and will continue my payments. Thanks for all your help and negotiations.
That A Settlement Was Entered.
I Absolutely Love You All At United Settlements. You All Have Saved My Credit Solutions. I Would Refer Everyone To You Services.
Mildred Yvonne Sherron
The results of the settlement attempts.
So far, I have found United Settlement more than satisfactory. Very conscientious and very efficient in providing a service in debt settlement. Thank you and all the members of your team who are assisting...
Tough Financial Hard Times During Covid-19
I signed up with United Debt Settlement because of large credit card debts, which had taken a financial toll on my credit. UDS has an outstanding reputation assisting clients like me achieve financial recovery...
No hassle service
Quick fast and no hassle
Time and again, I did not know how to handle my debt
Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement...
Business debt relief is what I needed when I contacted the United Settlement crew
Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out...
Student loan debt was the reason that I reached out to United Settlement
Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make...
There is nothing worse than falling ill and then having to deal with super expensive medical bills
There is nothing worse than falling ill and then having to deal with super expensive medical bills that you really do not have the patience or experience to handle. I was pleased with my experience with...
I took out a few personal credit cards to open my boutique
I took out a few personal credit cards to open my boutique. When than money ran out, I went on to take out more loans for my business. However, this quickly turned into a disaster. Today, I now have a mountain...
Who knew that auto loans were so negative for your credit lines
Who knew that auto loans were so negative for your credit lines? Especially, if they are not paid off right away. As a married couple, we had vowed to keep auto loan debt at bay. But, we found ourselves...
I didn’t have a ton of debt when I contacted United Settlement
I didn’t have a ton of debt when I contacted United Settlement, but what I wanted from them was some information about how to handle my debt management. I knew that I needed some more information to get...
Federal student loans were the reason I ended up at United Settlement
Federal student loans were the reason I ended up at United Settlement. I had about $200K to pay back and I was not quite sure where to tackle that debt once I got out of school. But I reached out to that...
Everyone knows how horrible student loans are
Everyone knows how horrible student loans are. For me and my family, they had become more than just an annoying monthly bill. They had taken over our lives. That’s why I decided to take action and find...
I wanted to be more informed about my own personal and business debt
The number one reason I chose to contact United Settlement was I wanted to be more informed about my own personal and business debt. When you have credit card debt, it can be extremely frustrating. Especially...
I cannot believe I was finally able to find a company to actually help me pay off my debt
I cannot believe I was finally able to find a company to actually help me pay off my debt! I thought I would forever be chained to debt. But United Settlement offered me multiple solutions for paying off...
What your money can do for you.
The great reviews that you have thanks.
Dealing with high interest auto loan debt was difficult for me and my wife
Dealing with high interest auto loan debt was difficult for me and my wife. We thought we got a good deal, but it actually was a horrible loan. So, we reached out to United Settlement, and they got to work...
Related to: Student Debt
Student Loan Forgiveness for Teachers
The Teacher Loan Forgiveness (TLF) program awards qualifying teachers a tax-exempt reduction ranging from $5,000 to $17,500 in principal owed on student loan debt. To qualify, a teacher must have worked full-time for five consecutive years at a certified low-income elementary or secondary school included on a list published annually by the U.S. Department of Education.
Applicants apply for the TLF by completing the Teacher Loan Forgiveness application, with only Direct subsidized and unsubsidized loans qualifying for forgiveness under the program – PLUS loans do not qualify. However, some teachers can successfully qualify for the TLF after five years, and then again qualify for the PSLF in a subsequent five years. For a complete guide, please consult the following page: https://studentloanhero.com/featured/student-loan-forgiveness-for-teachers/
Student Loan Forgiveness for Nurses, Doctors, Lawyers and Military Personnel
Under the NURSE Corps Loan Repayment program, qualified nurses, nurse practitioners and nursing faculty can have 60% of loan principal forgiven following two years of full-time employment in under served areas, and 85% of principal forgiven after three years. There are also state loan forgiveness programs available to nursing professionals employed in over thirty states.
Meantime, doctors and other health care professionals can avail themselves of National Health Service Corps (NHSC) awards of up to $50,000 following two years of employment at an approved site within an under served population area. Additionally, the Students to Service program awards up to $120,000 of loan forgiveness to primary health care providers who commit to three years of work at an approved site.
Within the legal profession, lawyers who work for the Department of Justice for at least three years can qualify for up to $60,000 of loan forgiveness , while the John R. Justice Student Loan Repayment program awards public defenders $10,000 of loan forgiveness per year for as many as six years.
Finally, the Army, Navy, Air Force and National Guard all have loan forgiveness programs that extend beyond those offered to Army and Navy medical personnel. For a complete guide, please consult the following page: