{"id":7072,"date":"2019-09-08T06:08:20","date_gmt":"2019-09-08T06:08:20","guid":{"rendered":"https:\/\/www.loanry.com\/blog\/?p=7072"},"modified":"2022-11-30T14:46:39","modified_gmt":"2022-11-30T14:46:39","slug":"student-loan-forgiveness-options","status":"publish","type":"post","link":"https:\/\/www.loanry.com\/blog\/student-loan-forgiveness-options\/","title":{"rendered":"What Student Loan Forgiveness Options are Available?"},"content":{"rendered":"

[vc_row][vc_column css=”.vc_custom_1669818967236{margin-top: 1em !important;}”][vc_single_image image=”7187″ img_size=”full”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]A few days ago, I received a notice in the mail that <\/span>my student loan<\/span><\/a> payments are coming due. I had been dreading the payments for years, but I was honestly shocked at the amount of my monthly payments: $1153.35. Who has that kind of money left over each month? Not me. I do not mind paying what I owe, but good grief, that is more than I can handle at once. I am on a mission to figure out another way, and I want to share my research with others in my predicament. We are going to take a look at ways to prevent needing student loans, student loan forgiveness, and alternative repayment options.<\/span><\/p>\n

What Are Loan Forgiveness Programs?<\/span><\/h2>\n

You hear about student loan forgiveness programs all the time, but it really is not what you think it is. In fact, if you call most of those places that offer loan forgiveness, they are actually loan consolidation places that want you to pay them to consolidate your loans. <\/span>The only way to get any kind of student loan forgiveness is through the federal government\u2019s approval<\/strong>, but it is not so easy.<\/span><\/p>\n

Most student loan forgiveness programs are only available after a set amount of years of payments- yes, years. For instance, some student loan forgiveness programs only apply after 20 or 25 years of on-time payments. If you are screaming, \u201cBut I can\u2019t afford my loan payment,\u201d it\u2019s okay. In a moment, we will talk about getting those payments lowered until you qualify for forgiveness.<\/span><\/p>\n

It\u2019s important to note that besides the term forgiveness, terms \u2018cancelation\u2019 and \u2018discharge\u2019 are also used. They essentially mean the same thing, but are used in different contexts. Forgiveness and cancellation is used when you\u2019re no longer obliged to make payments because of your job. In other circumstances, such as permanent disability, discharge is used.<\/span><\/p>\n

What Happens If I Do Not Pay?<\/span><\/h2>\n

Before we look at student loan forgiveness and repayment alternatives, let\u2019s be clear on how non-payment of loans can hurt you. It goes beyond showing up on your <\/span>credit score<\/span><\/a>. These are federal loans we are talking about. The federal government has the power to get their money back in any way they can. This means that if you do not pay, they can <\/span>garnish your wages<\/strong>– something most people cannot afford. They can also <\/span>keep any tax refund payments<\/strong> you should receive. It just is not worth the risk. Instead, put in the work to get one of the following options working for you.<\/span>[\/vc_column_text][vc_video link=”https:\/\/www.youtube.com\/watch?v=86HN_qD0mzM”][vc_column_text]<\/p>\n

Types of Forgiveness\/Cancellation\/Discharge<\/h3>\n

Here\u2019s an overview of different types of forgiveness available to you if you qualify.<\/span><\/p>\n

Public Service Loan Forgiveness (PSLF)<\/span><\/h4>\n

This type of forgiveness is for people who choose to work in public service jobs and used direct loans. It does not kick in immediately, though. You will still need to make 120 payments- that\u2019s about 10 years. However, if you do this, you qualify for 100% forgiveness.<\/span><\/p>\n

Teacher Loan Forgiveness<\/span><\/h4>\n

If you are a teacher and work at a qualifying school for a minimum of five consecutive years, you can receive anywhere from $5,000 to $17,500 in student loan forgiveness. This is only available for users of direct and FFEL Program loans.<\/span><\/p>\n

Perkins Loan Cancellation and Discharge<\/span><\/h4>\n

This is <\/span>available only for Federal Perkins Loans and you can get a portion or the entire loan discharged or cancelled.<\/span><\/p>\n

Total and Permanent Disability Discharge<\/span><\/h4>\n

If you\u2019re an individual with total and permanent disability, you may qualify for this discharge type. You need to have a direct, FFEL program or Perkins loan.<\/span><\/p>\n

Closed School Discharge<\/span><\/h4>\n

You may be eligible for discharge if your school closes while you\u2019re attending it or soon after you\u2019ve withdrawn.<\/span>[\/vc_column_text][vc_message]There are several more options due to death of the borrower, bankruptcy, false certifications and more. For more information, make sure you visit <\/span>StudentAid<\/span><\/a>.<\/span>[\/vc_message][vc_column_text]<\/p>\n

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How Do I Qualify for Student Loan Forgiveness\/Cancellation\/Discharge?<\/span><\/h4>\n

By visiting studentloans.gov, you will be in front of a wealth of information about student loan forgiveness and repayment plans. By filling out some information, you should receive a summary of what you can qualify for. This will also show you your student loan balance and let you control some parts of payments you make.<\/span><\/p>\n

What Do I Do If I Do Not Qualify?<\/span><\/h5>\n

Even if you do not qualify for student loan forgiveness, you can likely qualify for much lower repayment plans. These include:<\/span><\/p>\n