![]() ![]() Forgiveness amount is taxable because this is a cancellation of debt (insolvency exemptions may be available for some borrowers).Cannot take out student loans again after utilizing this program.Acceptable proof: SSDI or SSA award (with a 5-7 year review), doctor certification, VA documentation.Total and Permanent Disability Discharge Summary: For more information, go to our Total and Permanent Disability Discharge page. Consider consolidating your loans to ensure you are making qualified paymentsĪ borrower may be eligible for Total and Permanent Disability Discharge on their federal student loans if they are unable to engage in any substantial, gainful activity because of a physical or mental impairment.Must be in the direct loan program and making income-based payments.Government or Nonprofit employment 501(c)(3).Full forgiveness of federal student loans after 10 years (120 qualified payments).For more information, go to our Public Service Loan Forgiveness page. Under these circumstances, after making 120 payments under certain repayment plans the balance of your federal student loan would be completely forgiven. You may be eligible for public service loan forgiveness if you work full-time in a public service job. Total forgiveness amount is NON-taxable!.Can have $5,000, $17,500, or 100% of your Perkins Loans forgiven (depending on your program).Two options available: Teacher Loan Forgiveness or Perkins Loan Forgiveness.Designed for teachers in Low Income (Title I) Schools.For more information, go to ourTeacher Loan Forgiveness page. Teachers are eligible for complete loan forgiveness after 10 years of repayment. The idea behind this principal reduction was to encourage young graduates to pursue a career in teaching. Teachers can be eligible for $5,000 to $17,500 in principal reduction on their loans under certain circumstances. Teachers not only qualify for early forgiveness, but principal reduction as well. The Teacher Loan Forgiveness program is probably the most beneficial of all the loan forgiveness plans available. Takes 20-25 years depending on the borrower’s program (10 years for Public Service Loan Forgiveness). ![]() Must be in the Direct Loan Program to be eligible.Student Loan Forgiveness (under the Direct Loan Program) Summary: These options include Standard Repayment, Graduated Repayment, Income-Contingent, Income-Based, PAYE, and REPAYE. There are a variety of repayment options in the direct loan program as well as provisions which allow for early forgiveness (or principal reduction) on your consolidated loan. At the end of your consolidated loan term, any unpaid balance will be forgiven by the Department of Education. Every direct loan in this program has forgiveness attached at the end of the term (usually 20-25 years). Ford Direct Loan Program (known in the media as Obama Student Loan Forgiveness). ![]() The most widely applicable student loan forgiveness option the William D. Ford Direct Loan Program (known in the media as Obama Student Loan Forgiveness) Summaries of the Individual Programs William D. These plans are an excellent way to provide both instant payment relief and a long-term solution to your student loan debts. Income-Driven Repayment Plans (such as IBR, PAYE, and REPAYE), for example, have the benefit of capping your monthly loan payments at 10-15% of your discretionary income during the timeframe required before your remaining loan balances can be forgiven. Luckily, many borrowers today are able to significantly lower their payments while working toward future loan forgiveness. While forgiveness is often the goal of many student loan borrowers, many are struggling with payments today while looking for the right program. Lowering Your Monthly Student Loan Payments ![]() Military College Loan Repayment Program (CLRP)įor those joining the military in an active duty or reserve role The most common student loan forgiveness programs and their timing: Total and Permanent Disability Dischargeįor teachers at qualifying low income schoolsĪnyone in the income-driven repayment programs This article will explain each of these programs in detail so you can see the differences and how they stack up to one another. Student loan forgiveness can vary widely in both timing and amount depending on the individual program. Student Loan Forgiveness: What You Need to Know ![]()
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