Student loans can be a considerable drag on your finances. There are multiple programs designed to ease the financial burden of the student loan on your budget.<\/p>\n\n\n\n
Student loan forgiveness gives you an opportunity to stop repaying some or all of your student loan balance, or what is left of your student debt, and it will be \u201cforgiven\u201d \u2014 or showed as paid in full.<\/p>\n\n\n\n
If you are one of the 45 million Americans who currently have a student loan, you are probably wondering how to get student loan forgiveness. Student debt in the U.S. has reached a whopping $1.6 trillion, which makes it the second-biggest consumer debt type in the country, topped only by mortgages. Yes, it\u2019s higher even than credit cards and auto loans.<\/p>\n\n\n\n
As tuition fees have been steadily increasing, so have the amount students need to borrow via student loans. For example, the average amount of student loans for the class of 2018 is $29,200, which is a 2% increase from the prior year, according to the\u00a0Institute for College Access and Success. That\u2019s why paying off your student loan student should be one of\u00a010 Financial Steps to Take After Graduating From College.<\/p>\n\n\n\n
There are three paths that can lead you to get your student debt relief. The first two options are available to federal loans only, while the last one applies both to federal and private loans.<\/p>\n\n\n\n
The first is based on the type of career you choose, such as the Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness programs. Also, medical professionals, certain types of lawyers and members of the military have their own student loan forgiveness programs.<\/p>\n\n\n\n
The second path is based on years of your timely payments under a qualifying repayment plan, such as income-driven repayment.<\/p>\n\n\n\n
The third requires a set of extraordinary circumstances such as bankruptcy, disability, death, etc.<\/p>\n\n\n\n
Tip:<\/strong> If you are no longer required to repay your loan due to your job, that\u2019s forgiveness; circumstances such as a disability or the closure of the school may also qualify you for discharge.<\/p>\n\n\n\n There are multiple programs available, each with its own sets of requirements. For example, the PSLF program forgives the remaining balance after you have made 120 monthly payments under an income-driven repayment plan while working full-time for a qualifying employer, such as the government agency or organization or tax-exempt not-for-profit organization. Make sure you check various\u00a0student loan forgiveness programs\u00a0offered for different types of career paths.<\/p>\n\n\n\n The terms forgiveness, cancellation and discharge mean almost the same thing, but they still differ in a number of important features.<\/p>\n\n\n\n With cancellation programs, your student debt is canceled. For example, Federal Perkins Loans, in which your school and not the federal government is the lender, have a separate, career-based cancellation program. To be eligible to have all or a part of your\u00a0Perkins Loan canceled\u00a0based on your employment or volunteer service, you\u2019ll need to be a full-time employee or a volunteer in a qualified career, such as a teacher in a high-need educational institution, nurse, law enforcement or corrections officer, member of the military or Vista or Peace Corps volunteer.<\/p>\n\n\n\n The discharge also means that you are no longer required to repay your student loan, but for reasons that are not related to your career choice. This type of student debt relief may be granted under certain extraordinary circumstances, such as bankruptcy, death, disability or school closure.<\/p>\n\n\n\n For example, in cases where your school closes while you\u2019re enrolled, you may qualify for so-called closed school discharge. Also, if you declared bankruptcy you may have your federal student loan discharged, but it\u2019s not a given. To be considered for a student loan discharge, you will need to file an \u201cadversary proceeding,\u201d which requests the bankruptcy court rule that repayment would cause undue hardship on you and your dependents.<\/p>\n\n\n\n There are several student loan forgiveness programs available and they are all related to the career that you\u2019ve chosen. The\u00a0PSLF\u00a0program allows not-for-profit and government employees to have their federal student loans forgiven after 10 years of timely payments. The\u00a0Teacher Loan Forgiveness Program\u00a0aims to encourage teachers to take jobs at schools that serve low-income families. You\u2019ll need to teach full-time at such a school for five consecutive years to be eligible to have from $5,000 to $17,500 in loans forgiven. There are also special loan forgiveness programs for doctors and nurses, lawyers practicing in public service, as well as each branch of the military.<\/p>\n\n\n\nDo I qualify to have my student loan forgiven?<\/strong><\/h2>\n\n\n\n
How to get your student loan forgiven <\/strong><\/h2>\n\n\n\n
Cancellation programs<\/strong><\/h3>\n\n\n\n
Discharge<\/strong><\/h3>\n\n\n\n
Student loan forgiveness programs<\/strong><\/h3>\n\n\n\n