Student Loan Discharge For Special Circumstances
While student loan discharge isnt the same as forgiveness, it could leave you debt-free. In rare circumstances, borrowers can get their student loans completely canceled.
There are several situations when you could qualify for student loan discharge, including:
- Closed school
If you think you could qualify or want to learn more, speak with your loan servicer.
Other Student Debt Relief Options For Healthcare Workers
There may be one reason or another that you do not qualify for student loan forgiveness. But there are other options that may help to relieve the burden of your federal student loans. Loan deferment or forbearance may give you temporary relief from your student loan debt. The key difference between deferment and forbearance is the amount of interest that accrues during the period of time your loans are in deferment or forbearance. When your loans are in deferment, no interest will accrue. When your loans are in forbearance, interest will accrue.
You can request a deferment with your student loan servicer, providing documentation that you meet the eligibility requirements for deferment. Eligibility will vary depending upon your situation. For example, you may qualify for an economic hardship deferment if you are enrolled in graduate study for the duration of that study. Loan forbearance, on the other hand, may be granted for no more than 12 months at a time and there is a limit on general forbearances of three years.
Healthcare workers may also consider entering into an income driven repayment plan, wherein your loan payment owed is based on your income. There are several different options available to you:
Revised Pay As You Earn Repayment Plan
Pay As You Earn Repayment Plan
Income-Based Repayment Plan
Income-Contingent Repayment Plan
Should I Apply For Navient Student Loan Forgiveness
You cant apply for student loan forgiveness if youve only just graduated or have been making payments for a few years. Most loan forgiveness programs are available after youve made substantial payments . However, loan forgiveness in the case of death or disability is available whenever its liable.
Its best to refinance your loans if youre just getting into repaying your loans. This can help reduce the interest payments and you can change your loan servicer in the process.
With that being said, if you think youre eligible for any sort of loan forgiveness, you should apply for it as soon as possible.
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How Married Couples Can Take Advantage Of Student Loan Forgiveness
In todays world, it is typical that people who have much in common should be attracted to each other, That is why it is normal for many of us to choose a spouse who may have something to do with our profession.
Here are some interesting statistics to substatiate this point:
What else do these couples with similar professions share? It is that they are also qualified to apply for the benefits of Public Service Loan Forgiveness .
In fact, if your spouse does not work in exactly the same public service field, knowing how the system works and how it can impact on your personal finances, will ensure they will offer the best course of action for the student loan debts.
Student Loan Repayment Assistance Programs For Nurses
In addition to national programs, many states offer loan repayment assistance to nurses. The Illinois Nurse Educator Program, for example, awards up to $5,000 per year for four years to qualifying nurses and nurse educators in Illinois.
Browse through the available LRAPs for nurses. You can search by state, occupation or award amount. There are plenty more loan forgiveness options for nurses.
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Student Loan Forgiveness For Dentists
If youre a dentist who works for the government or a qualified nonprofit, you might qualify for loan forgiveness.
Student loan repayment assistance may also be provided to dentists who agree to work in areas where there are not enough dentists, or who provide care to underserved populations.
Here are some great options for student loan forgiveness programs for dentists:
- PSLF: Dentists working for the government or qualifying nonprofits may be eligible for 100% forgiveness after making 120 monthly payments in an income-driven repayment plan.
- The National Health Service Corps Loan Repayment Program : Up to $50,000 in loan repayment in exchange for two years of service at approved sites that provide free or discounted services to Medicare beneficiaries and others.
- NIH Loan Repayment Programs: The National Institutes of Health offers eight Loan Repayment Programs that provide up to $50,000 a year in student loan repayment assistance to dentists and scientists with medical degrees who perform biomedical or biobehavioral research.
- State-based dentist loan forgiveness: To attract and retain dentists, many states provide student loan forgiveness.
Learn More: Dental School Loan Repayment Guide
Borrower Defense To Repayment Discharge
If youre defrauded by your school if it misleads you about its job placement rates, for example you could qualify to have your federal student loans forgiven by filling for a Borrower Defense to Repayment claim.
Youll usually have to demonstrate that the school, through an act or omission, violated state law directly related to your federal student loan or to the educational services for which the loan was provided.
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Student Loan Repayment Assistance Programs For Teachers
The Teacher Forgiveness Program isnt your only option for student loan help. Many states also offer loan repayment assistance for teachers. Most of these programs require state licensure, as well as a commitment to working for two years in a qualifying area.
The Teach for Texas Program, for example, gives yearly assistance to teachers in designated shortage areas.
To find programs in your state, check out the full list of loan repayment assistance programs and filter the results by occupation.
Complete Your Employer Certification
Borrowers have to make 120 on-time loan payments, which can be difficult to track. One thing that will help make monitoring payments manageable is completing your employer certification each year.
âSubmitting the form annually will let us track and verify how many qualifying payments you make while working full-time for a qualifying employer, among other PSLF eligibility requirements,â according to the Federal Student Aid office.
Every year that a borrower certifies employment, the loan servicer has to go back and look at the last 12 months of payments. If the borrower made the payments on time, then 12 months will be credited toward the PSLF program, Lupi explains. This way, borrowers can see their progress updated each year and avoid being surprised by unqualifying payments.
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Other Options For Managing Student Loan Debt
As with any loan, making payments to avoid piling interest is the way to financial health. Setting up a plan, such as a budget that sets aside a certain amount of money every month and directs it into a separate savings account not linked to your main banking accounts, can help build up the funds necessary to finally pay off the student debt you owe.
Differences Between Forgiveness Cancellation And Discharge
The terms forgiveness, cancellation, and discharge mean nearly the same thing, but theyre used in different ways, if youre no longer required to make payments on your loans due to your job, this is generally called forgiveness or cancellation. If youre no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans, this is generally called discharge.
Forgiveness, cancellation, and discharge all refer to the cancellation of a borrowers obligation to repay all or a portion of the remaining principal and interest owed on a student loan but are generally used in different contexts.
Loan cancellation and loan forgiveness generally refer to the cancellation of a borrowers obligation to repay some or all of the remaining amount owed on a loan if the borrower works full-time for a specified period of time in certain occupations or for certain types of employers. Loan cancellation is usually used in reference to the various Perkins Loan Program cancellation benefits. Loan forgiveness is usually used in reference to the Direct Loan and FFEL Teacher Loan Forgiveness Program or the Direct Loan Public Service Loan Forgiveness Program. Borrowers are not required to pay income tax on loan amounts that are cancelled or forgiven based on qualifying employment.
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Pslf Payments Rejected Due To Technicalities Will Be Reinstated
The Department will also be taking steps to reverse rejections of payments due to technicalities. Too many payments do not count toward PSLF due to technical requirements around borrowers choice of payment plan, timing, and amount of the payment, wrote the Department. In some instances, borrowers missed out on credit toward PSLF because their payments were off by a penny or two or late by only a few days.
The Department will be conducting an audit over the next few months, and indicated it will automatically adjust qualifying PSLF payments for borrowers who were unfairly rejected due to these kinds of technicalities.
Additional Student Loan Relief From Coronavirus Pandemic Legislation
In light of the coronavirus pandemic, and the effects that it had and continues to have on the U.S. economy, the federal government has enacted several forms of relief from student loan debt.
Starting March 13, 2020 and effective through September 30, 2021, federal student loan borrowers were automatically placed in an administrative forbearance. This means that if you have federal student loans, you will not be required to make payments during this time. Additionally, interest on those loans has been suspended. If you are currently in a federal student loan forgiveness program, these months count towards your 120 payments if you otherwise qualify.
You can still make payments toward your loans during this time. If you are in a position to do so, and would like to make payments, your payments will be applied directly to your principal balance rather than the interest on your loan, thus chipping away at your loan balance. Either way, you should take advantage of special debt relief opportunities created in light of the Covid-19 pandemic, if any apply to your situation.
Unfortunately, during the coronavirus pandemic, private loan servicers are not required to offer relief in the form of forbearance or suspending interest. However, some companies have chosen to do so, and it is important to contact your lender to determine what – if any – relief they may be offering.
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Issues With Borrowers Defense To Repayment
You might wonder why this program is so debated. The reason is that in other forgiveness opportunities, there is some service required in return for the benefit. For example, in Teacher Loan Forgiveness, borrowers work for 5 years in low-income family schools.
However, Borrowers Defense is granted without a reciprocal benefit to the government. Hence, the Education Department views it as free money. However, others believe that the program is fair as students chose to enroll for a degree on false grounds.
After understanding the complexity of Borrowers Defense, it becomes clear why student loan forgiveness during Coronavirus is hard to get. Such an opportunity is due to the current difficulty of a pandemic. Some people might argue that such forgiveness is unfair because borrowers will receive the funds from the taxpayers money. Not all taxpayers have a degree or getting loans to get further education.
Forgiveness With Revised Pay As You Earn
Revised Pay As You Earn works much the same way as Pay As You Earn. Under this plan, your payments will be capped at 10% of your discretionary income. Undergraduate loans are forgiven after 20 years, while graduate school loans are forgiven after 25 years.
Unlike IBR and PAYE which require you to end up with a lower payment than on the standard plan, theres no such requirement for REPAYE anyone with eligible loans can apply, even if they end up paying more with an income-based payment. As a result, you could end up with high monthly payments on REPAYE if you suddenly start making a lot more money.
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Loan Forgiveness For Military
Each branch of the military has programs that help qualified members pay off their student loans, but the loan amounts forgiven and the requirements that must be met vary dramatically.
Visit the Complete Guide to Military Student Loan Forgiveness and Repayment and find the program that best suits your situation and branch of the military.
What Is A Veteran
First, lets clarify some terms. Most people think veterans are injured soldiers who have served the country in wars. This is part of the image of a veteran, but it isnt the only one.
A veteran is anyone who has served in any branch of the military who isnt discharged dishonorably. This refers to anyone in the Army, Navy, Air Force, and other related branches.
You dont have to be seriously injured to qualify as a veteran. As long as you have served the country in the military without dishonor, you are a veteran.
Are you a veteran? Good news. You qualify for student loan forgiveness.
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Do You Work In The Public Service
Eligibility depends on whether or not you work for a qualifying public service employer. Put it another way, it doesnt matter what you do, just who employs you. Qualifying public service employers include:
501 nonprofit organizations
Employers That Will Not Qualify for Public Service Loan Forgiveness:
Would Student Loan Forgiveness Include Private Student Loans
Private student loans likely won’t be included in any student loan forgiveness passed by the Biden Administration. The loan forgiveness being discussed by Biden and members of Congress applies only to federal student loans. These loans include:
- Direct Subsidized Loans
The PSLF Program considers you to be a full-time employee if:
- you meet your employer’s definition of “full-time” OR
- you work at least 30 hours per week, whichever is greater.
But what if you work part-time for two qualifying employers?
In that case, part-time employees can still meet the full-time eligibility requirements by working a combined 30 hours per week on average.
How to certify employment
Until recently, borrowers could submit a PSLF Employment Certification Form to certify they work for a qualifying employer. As part of a policy change, the certification form has now been merged into the Public Service Loan Forgiveness & Temporary Expanded PSLF Certification & Application.
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Should I Apply For Student Loan Forgiveness
8 Minute Read | September 10, 2021
Back in the day, when you were trying to figure out life after high school, you mightve believed the lie that loans were the only way to pay for college. And now that youre a college graduate staring at a mountain of debt, you probably wish you wouldve explored other options.
It might seem like the government created student loan forgiveness programs because they understand the amount of financial stress graduates face as they struggle to pay back those loans. So nice of them, right? The truth is, forgiveness programs are changing all the timeespecially with all the craziness happening in the world right nowmaking it harder and harder to get those loans forgiven. Heres everything you need to know about these programs and how they actually work.
Which Navient Student Loans Do You Have
First of all, you should keep in mind that Sallie Mae loan forgiveness is completely different from Navients loan forgiveness programs. They both have different loan programs, co-signer options, repayment options, credit score requirements, and education loans.
Because Navient does federal loan servicing, as well, you have to separate your private loans from your federal loans . Since there are different forgiveness programs for each type of loan, it makes a huge difference.
If you dont remember which type of student loans you took out, you can always call Navient and inquire from them directly. Alternatively, you can check with the federal governments National Student Loan Data System by conducting a Financial Review.
Its best if you have federal loans since that makes you eligible for federal forgiveness programs, provided youve been making your monthly payments. However, private student loans are subject to the rules of the company that provided the direct loan. Private student loans can be eligible through the state, or in some cases, profession-specific forgiveness programsif youve been regularly making the student loan payments.
Furthermore, check if Navient is your loan servicer. Just log in on the federal student aid website with your FSA ID and check your current ED servicer. Itll most likely be Navient. However, it could also be FedLoan Servicing, Nelnet, or the Great Lakes Higher Education.
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Qualifying And Applying For Public Worker Loan Forgiveness
There are caveats for getting a Public Service Loan and The federal government provides a route for loan forgiveness specifically for teachers. There are other qualifications you can find on the Student Aid website. If youre eligible, you could receive up to a total of $17,500 toward your federal student loans. Here are some of the criteria that you need to know about before you apply.
Public Service Loan Forgiveness
- You must have made 120 monthly payments on your loan already.
- You have to be in a full-time public service job.
List of organizations that qualify:
Teacher Loan Forgiveness
- To qualify, you have to teach full-time for five full, consecutive years.
- The work must be within particular elementary or secondary schools or educational service agencies that seek to help those with low incomes.