Tuesday, September 27, 2022

How Can I Apply For Loan Forgiveness

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National Defense Student Loan Discharge

Do I qualify for the new Public Service Loan Forgiveness (PSLF) waiver? PSLF 2021-2022 UPDATE!!

Federal law says that service in a location that qualifies a military member for hostile-fire or imminent-danger pay can qualify for up to 50% of their loan being canceled if their military service ended before Aug. 14, 2008.

For those whose service began on or after that date, up to 100% of their loan may be forgiven.


To receive an NDSLD discharge, you must first complete at least one full year of service in one of the branches of the United States Armed Forces, and that year of service must have included an entire year of being deployed to a hostile fire or imminent danger pay area.

Partial years do not count towards NDSLD.

Loans Eligible

NDSLD only applies to Federal Perkins Loans.

No new Perkins Loans have been issued since Sept. 30, 2017, but if you have old loans, it is worth pursuing NDSLD.

How it Works

In order to apply, you must fill out a DD 214 discharge form and explain why you think you qualify for the program. The form and your explanatory letter must be sent to the company servicing your loan.

Nurse Corps Loan Repayment Program

If you work in an underserved community, you might be eligible for the NURSE Corps Loan Repayment Program. You can get up to 60% of your student loans paid over two years of employment. If you work for a third year, you could qualify for forgiveness toward another 25%.

What are the requirements?

To qualify for the NURSE Corps Loan Repayment Program, you must be a registered nurse, nurse practitioner or nurse faculty member. Nurses must work in a critical shortage area and serve a high-need population. Nurse faculty members must be at an accredited school of nursing.

How do you apply?

Applications are accepted once a year, and guidelines are updated annually. Check the program requirements and guidelines ahead of time and make sure to turn in your application on time.

How To Apply For An Income

  • Apply Online You can apply online for an IDR plan at StudentLoans.gov
  • Apply On Paper You can submit this form to your lender.
  • When applying for an IDR, be aware that you will need to prove your income to your lender, and you may also need to show your spouses income if you are married and file your taxes jointly.

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    Student Loan Forgiveness For Veterans

    October 19, 2020 by Emma Woods

    If you are an active duty service member, Reserve, National Guard, or honorably discharged Veteran, you qualify for student loan forgiveness.

    All branches of the United States Armed Forces Army, Navy, Air Force, Marines, and Coast Guard can apply for loan forgiveness and repayment programs.

    In some cases, you may even qualify for discharge of your loans.

    There are a variety of programs available to service members and Veterans, and their criteria and award amounts vary considerably.

    Below we go through some of the options that may be available to you and how to apply for them.

    Calculating Your Maximum Loan Forgiveness Amount

    Completing Your PPP Loan Forgiveness Application

    While larger small businesses were eligible for larger PPP loans, the maximum a self-employed individual with no employees or payroll could get from the loan program was $20,833. That amount was calculated this way:

    • The maximum possible applicable self-employed income was $100,000 .
    • The average monthly income for someone making $100,000 is $8,333.
    • Self-employed loan amounts were based on 2.5 times average monthly income. So, for someone making $100,000 , the maximum PPP loan was $8,333 x 2.5, which is $20,833.

    This number is important as it turns out to also be the maximum amount you, the sole-proprietor, can get forgiven.

    To figure out how much of your loan can be forgiven, follow these steps:

  • Look at your 2019 or 2020 IRS 1040 Schedule C .
  • Look at Line 31 . If it is more than $100,000, as indicated above, use $100,000.
  • Divide that number by 12.
  • Multiply that number by 2.5.
  • That third step calculates your average monthly revenue and the fourth step gives you your maximum PPP loan forgiveness amountâ2.5x your monthly average. On $100,000, that number is $20,833.

    Note: The above number is also known in the lingo as âownerâs compensation share.â If you do not run payroll, your ownerâs compensation share would likely be that $20,833 number. However, if you do run payroll, the calculation is a bit more complicated. It looks like this:

    • Take your gross income .
    • Subtract payroll expenses / payroll costs .
    • Multiply that by .208.

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    How To Get Navient Student Loan Forgiveness In 4 Steps

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    Higher education costs and increasing student loan debt has led to things like loan discharges and student loan forgiveness. One of the oldest companies to understand that and offer a solution was the Navient Student Loan Forgiveness program.

    When Can I Apply For Forgiveness

    You must have reached the end of your covered period before applying for loan forgiveness. Your covered period must be a minimum of 8 weeks long .

    For application types that require supporting documentation, that documentation is required to be submitted with the forgiveness application. You may need to wait for statements to be issued in order to submit your application.

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    Help For Teachers And Medical Professionals

    Theres further assistance for teachers in the Teacher Loan Forgiveness Program, which targets teachers educating kids from low-income backgrounds and may be able to get you up to $17,500 to use toward loan repayment. And teachers can seek out loan repayment assistance for teachers offered by many states. You often need to have a state license and teach for at least two years.

    Additionally, theres student loan assistance for nurses from federal and state programs, like the Nurse Corps Loan Repayment Program, which foots the bill for up to 85% of unpaid nursing education debt. And the National Health Service Corps Loan Repayment Program gives out money to licensed health care providers. Also under NHSC, students in their last year of medical schooling may get loan repayment help through the Students to Services Loan Repayment Program. The Indian Health Services Loan Repayment Program encourages clinicians to work in American Indian and Alaska Native communities by providing repayment assistance on student loans, up to $40,000.

    The National Institutes of Health has its own program with aid to medical workers specifically involved in research. Known as NIH LRP, the program can repay up to $50,000 annually of a researchers educational debt.

    How To Apply For Student Loan Forgiveness

    When Can I Apply For PPP Loan Forgiveness | When to Send PPP Forgiveness Form to Lender

    There are many options for student loan forgiveness and discharge, but each has different eligibility restrictions and a different application process. Learn how to apply for student loan forgiveness.

    Borrowers want to know how to apply for student loan forgiveness.


    Student loan forgiveness and discharge options include:

    • Public Service Loan Forgiveness
    • Total and Permanent Disability Discharge
    • Death Discharge
    • Borrower Defense to Repayment Discharge
    • False Certification Discharge
    • Discharge after 20 or 25 years in an income-driven repayment plan

    Some student loan forgiveness is automatic. Other student loan forgiveness requires the borrower to submit an application form. Application forms can be obtained by contacting the loan servicer or by calling the U.S. Department of Educations Federal Student Aid Information Center at 1-800-4-FED-AID .

    There is no fee to apply for loan forgiveness. You do not need to pay anyone for help in applying for loan forgiveness.

    The American Rescue Plan Act of 2021 made all student loan forgiveness and student loan discharge tax-free through December 31, 2025. This legislation is likely to be extended or made permanent before it sunsets.

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    How To Apply For Relief Under Expanded Pslf

    The Department is characterizing the changes to the PSLF program as a Limited PSLF Waiver that is being implemented using emergency executive authority. As a result, there is a limited time window during which the relief can be offered: one year, and the deadline is October 31, 2022.

    The Department will be providing some of the relief automatically. For example, the Department indicated that it will be automatically adjusting payments that were rejected due to identifiable technicalities.

    For other borrowers, however, action may be required. Borrowers who have not consolidated their FFEL loans and Perkins loans, for instance, will need to consolidate their loans via the federal Direct consolidation program by October 31, 2022 to get prior payments on those loans to count towards PSLF. Before consolidating, borrowers should be absolutely certain that their employment during the requisite time period would qualify for PSLF.

    Borrowers who already have all Direct-program federal loans will either need to apply for student loan forgiveness under PSLF by October 31, 2022 , or they will need to certify their employment by that date to qualify for the PSLF waiver benefits.

    The Department indicated that it would release more information in the coming weeks to help guide borrowers.

    Exemptions On Rehiring Employees

    Employees who were employed as of February 15, 2020, and were laid off or put on furlough may not wish to be rehired onto payroll. If the employee rejects your re-employment offer, you may be allowed to exclude this employee when calculating forgiveness.

    To qualify for this exemption:

    • You must have made an written offer to rehire in good faith

    • You must have offered to rehire for the same salary/wage and number of hours as before they were laid off

    • You must have documentation of the employeeâs rejection of the offer

    If any of these conditions apply to an employee, you can also qualify for an exemption:

    • They were fired for cause

    • They voluntarily resigned

    • They voluntarily requested and received a reduction of their hours

    You may also be required to demonstrate you were unable to hire similarly qualified employees for unfilled positions, or document that due to safety requirements, you were unable to return to normal operating levels. Note that employees who reject offers for re-employment may no longer be eligible for continued unemployment benefits.

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    Which Student Loan Forgiveness Programs Are Legitimate And Are Not Scams

    Like I said earlier, that there are student loan Forgiveness scams doesnt mean that there are no legit Loan forgiveness programs for students.

    Student loan forgiveness programs do exist just that its process is cumbersome and its only applicable to federal loans alone, not a private student loan. So whenever someone promises to erase your debt with a private lender, its most probably a student loan forgiveness scam.

    Seeking forgiveness for your federal loans might involve opting for an income-driven repayment plan. For these plans, you just have to pay a small percentage from your income toward your student loans.

    You can also go for Public Service Loan Forgiveness Depending on your profession or your repayment plan.

    There are student loan forgiveness programs that are legitimate and are not scams. Some of them count the following

    Filling Out The Ppp Forgiveness Application

    How I Paid Off $130,000+ In Student Loans (and how you can ...

    Filling out your PPP forgiveness application will be very different depending on whether you have employees or not.

    NOTE: If you are self employed and do not have W-2 employees read our article: Self Employed: How to Fill Out the PPP Loan Forgiveness Application Form

    The most complicated part of filling out the forgiveness application is filling out the payroll sections. Well provide general information here but you may have questions unique to your situation. You may find answers in the SBA guidance, so be sure to review it. Also keep in mind this information does not replace professional accounting or legal advice. In fact, we strongly encourage you to work with your accountant before you submit your application for forgiveness.

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    Special Pslf Changes For Those In The Military

    The Department also announced sweeping PSLF changes for military service members. The Biden administration will allow months spent on active duty to count toward PSLF, even if the service members loans were on a deferment or forbearance rather than in active repayment, which is typically a requirement for PSLF. This change ensures that members of the military will not need to focus on their student loans while serving our country.

    The Department will also take steps to automate enrollment in PSLF for military service members and federal government employees.

    What Is The Difference Between Payroll Costs Being Paid Vs Incurred

    Payroll costs are considered paid on the day that paychecks are distributed, or you originate an ACH credit transaction. Payroll costs are considered incurred on the day that the employeeâs pay is earned. Payroll costs incurred but not paid during the last pay period of your covered period are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the covered period.

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    You’ve Got Options If You Were Denied Pslf

    If your application for Public Service Loan Forgiveness was denied, you may be able to receive loan forgiveness under the Temporary Expanded Public Service Loan Forgiveness opportunity.

    As part of this opportunity, the Department of Education reconsiders your eligibility using an expanded list of qualifying repayment plans.

    This TEPSLF opportunity is temporary, has limited funding, and will be provided on a first come, first served basis. Once all of the funds are used, the TEPSLF opportunity will end.

    Visit StudentAid.gov for detailed information on how to be reconsidered for loan forgiveness.

    Are There Caps On The Amount Of Loan Forgiveness Available For Owner

    How to apply for the Public Service Loan Forgiveness (PSLF) Waiver

    Yes. Forgiveness is capped at 2.5 months worth of an owner-employee or self-employed individuals 2019 or 2020 compensation . The individuals total compensation may not exceed $100,000 on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred.

    For example, for borrowers that elect to use an eight-week covered period, the amount of loan forgiveness requested for owner-employees and self-employed individuals payroll compensation is capped at eight weeks worth of 2019 or 2020 compensation or $15,385 per individual, whichever is less, in total across all businesses. For borrowers that elect to use a ten-week covered period, the cap is ten weeks worth of 2019 or 2020 compensation or $19,231 per individual, whichever is less, in total across all businesses. For a covered period longer than 2.5 months, the amount of loan forgiveness requested for owner-employees and self-employed individuals payroll compensation is capped at 2.5 months worth of 2019 or 2020 compensation in total across all businesses.

    Owner-employees with less than a 5 percent ownership stake in a C- or Scorporation are not subject to the owner-employee compensation rule.

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    What If I Dont Respond In Time

    If you do not complete the Confirmation of Interest process by the deadline, we may withdraw your application from consideration.

    If you still wish to participate in the program, you will need to submit a new application. You will need to do this during a future NHSC LRP application cycle for first-time participants. You will compete with other providers based on that cycles program requirements.

    Can I Get The Employee Retention Credit And Ppp

    Under section 206 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, an employer that is eligible for the employee retention credit can claim the ERC even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program . The eligible employer can claim the ERC on any qualified wages that are not counted as payroll costs in obtaining PPP loan forgiveness. Any wages that could count toward eligibility for the ERC or PPP loan forgiveness can be applied to either of these two programs, but not both.

    In other words, no double dipping. This means youll want to be extra careful choosing your covered period if you plan to take advantage of both programs. Be sure to talk with your tax professional as soon as possible.

    This article was originally written on May 21, 2020 and updated on July 28, 2021.

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    Are There Exceptions To Fte Reductions

    Yes, there are several situations where a reduction in FTE would not be counted against you. These include:

    • Any positions for which you made a good-faith, written offer to rehire an individual who was an employee on February 15, 2020 but were unable to hire similarly qualified employees for unfilled positions on or before one of the following:
    • For loans made before December 27, 2020,December 31, 2020.
    • For loans made after December 27, 2020, the last day of the covered period.
  • Any positions for which you made a good-faith, written offer to restore any reduction in hours, at the same salary or wages, during the covered period and the employee rejected the offer
  • Any employees who during the covered period were:
  • Fired for cause
  • Voluntarily requested and received a reduction of their hours
  • You should refer to the SBA Form 3508 instructions for details about FTE reduction exceptions.

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