Every student who wishes to pursue higher studies always tries to secure their future with student loans. As they are a huge investment, students often miss out on the benefits of student loan forgiveness programs. Thorough knowledge of the student loan forgiveness program will help you take the burden off your shoulders. You might be unaware that more than 50% of students are eligible for student loan forgiveness programs. Remember, if you have availed private loan, you won’t be eligible for the forgiveness program. Let’s have a look at the list of student loan forgiveness programs for which you can apply and clear off your pending debt.
Income-driven repayment forgiveness
The federal government gives the student loan benefit with around four income-driven repayment plans. According to this plan, your loan payments are capped according to your monthly income. Once you’ve enrolled in any of these plans, you can rest easy knowing that your loan will be eligible for forgiveness after 20-25 years. If you’ve availed of high loans, this repayment plan can be quite beneficial for your needs. The National Consumer Law Centersaid that there are around 32 loan borrowers who have received immense benefit from the income-driven repayment forgiveness. However, one thing to keep in mind is that until 2030, loan borrowers won’t be eligible for the income-driven repayment plan.
Public service loan forgiveness
Another loan forgiveness program that you can receive benefits from is public service loan forgiveness. This program is available for government employees as well as nonprofit employees that qualify for it. When a loan borrower makes 120 loan payments, they can benefit from the public service loan forgiveness.
Student loan forgiveness for nurses
According to this program, qualified nurses can reap the benefits of student loan forgiveness for nurses. Around 85% of qualified nurses’ unpaid college debt can be cleared by the student loan forgiveness for nurses. Some of the programs that they can use to forgive debt include Perkins loan cancellation, Public Service Loan Forgiveness, and the NURSE Corps Loan Repayment Program. Most of the nurses usually opt for Public Service Loan Forgiveness, whereas some of them choose the NURSE Corps Loan Repayment Program.
The state-sponsored repayment assistance program
This is another famous debt assistant program that can be used by nurses, teachers, doctors, and lawyers. They can freely avail themselves of this program to repay their pending college debt. However, the specific amount of loan repayment will entirely depend on your state laws. For instance, teachers can get $3,000 for four years as per the state laws of Mississippi. This is known as the Teacher Loan Repayment Program of Mississippi. For more information, you can check the laws of your state and ensure whether or not you qualify for the student loan forgiveness program.
Military student loan forgiveness and assistance
This assistance program is specially designed to help military officers. Qualifying people for the military student loan forgivenessand assistance program include Air Force, Army, Navy, National Guard, and Coast Guard. Qualifying soldiers can receive up to $50,000 assistance according to the military student loan forgiveness programs.
Additional student loan repayment assistance program
Aside from the aforementioned assistance and loan forgiveness programs, there are plenty of others offered by the federal or state government. For instance, if we talk about the National Institutes of Health, you can get around $35,000 per year. This assistance is offered to the health professionals only that are solely appointed by the major institutions for research.
Perkins student loan cancellation program
If you’ve borrowed a Federal Perkins student loan, you’re eligible to get 100% of loan cancellation. The condition is that you must have worked in the public sector for at least five years. Teachers can also qualify for the loan program. However, the condition is that the teachers must have worked in a low-income public school full time. Other teachers that can apply for the program include those who teach important subjects like math, science, special education, or a foreign language.
A few student loan discharge programs
Now that you’ve got an idea about multiple loan forgiveness assistance and programs, it’s time to have a look at a few student loan discharge programs too.
Closed loan discharge
If you’ve enrolled in a school that closed due to any reason, you can apply for a closed loan discharge program. However, there is one major condition that needs to be satisfied. When your school closes, you must have either enrolled within 120 days, or you haven’t yet received a degree. Make sure you start the application process as soon as possible after the closure but be sure you keep on paying your monthly payments until you’re approved. Once you’re approved for the program, you will receive a refund of a few or all loan payments for your loan.
Total and permanent disability discharge
Another way by which you can receive a loan cancellation is if you’ve got a total or permanent disability. In a case when you get mental or physical disability permanently, you can qualify for a total and permanent disability discharge loan. However, in this type of student loan forgiveness program, your finances will be monitored thoroughly for at least three years. In case you don’t meet the needs and requirements, your loan will be activated in the near future. Moreover, veterans can also reap the benefits of total and permanent disability discharge if they meet the necessary conditions.
Final Words
There are many programs and student loan forgiveness assistance that can help you get rid of debts and expenses. The only thing is that you’ve to meet the necessary conditions offered by the federal or state government. While you are trying to lower your debt, you also try to refinance other loans that have high interest, you can refinance your personal loans, refinance your title loans. Remember, there are many fraudsters and scammers that may charge you extra money for applying for the aforementioned tips. Beware of such scammers and other companies that claim to help you through the process. We hope that this article will help you gain a complete insight into different student loan forgiveness programs available today. Before applying to any of the student loan forgiveness programs, be sure you check out the latest laws of your state.