The Complete List of Student Loan Forgiveness Programs and Options. Have you ever wished that your student loans would just go away? While there is no easy way to snap your fingers and have your student loan debt magically disappear, there are ways to get your student loan debt forgiven. There are various student loan forgiveness programs out there for people that work in public service, education, and more. Some states are even helping debt- saddled graduates with their loans as well. Whether you’re struggling with six- figure debt or looking for “free money” to pay off your student debt, student loan forgiveness can be a nice alternative. Here is the complete list of student loan forgiveness programs: 1) Public Service Loan Forgiveness. The Public Service Loan Forgiveness program is a federal program that assists those working in public service jobs, such as nonprofits, manage their debt loan through forgiveness after 1. Who is eligible? Full- time employees at a federal, state or local government agency as well as nonprofit workers at an organization with a 5. For purposes of this program, religious- based work at a non- profit does not qualify. Which loans are eligible? Federal Direct Subsidized Stafford/Direct Loans. Special Direct Loan Consolidation Program. Federal Private Loans For Students; Payday Loans Aldis. Loan Consolidation Companies. Some only offer federal student loan consolidation. They also offer special. What is Direct Consolidation? The Direct Consolidation Loan program is offered by the U.S. Department of Education to. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly. Federal Family Education Loan (FFEL) Program.American Education Services. Federal Loan Consolidation. If you are eligible for a Special Direct Consolidation Loan, the federal loan. How will I know if I am eligible for the Special Direct Consolidation Loan program? Welcome to Nelnet.com. As your student loan servicer. Stages of a Student Loan; Federal Student Loans 101. Federal Direct Unsubsidized Stafford/Direct Loans. Federal Direct PLUS Loans. Federal Direct Consolidations Loans. It’s important to note that Federal Perkins Loans and Federal Family Education Loans (FFEL) are not eligible for forgiveness through this program unless you consolidate them via a Direct Consolidation Loan from the Department of Education (see below). However, Perkins loans do have their own special cancellation program (more info below). What are the requirements? Make 1. 20 on- time payments towards your Direct Loans. Payments must be under a qualifying plan. Qualifying plans include: Income- Based Repayment (IBR), Pay As You Earn Repayment (PAYE), Revised Pay As You Earn (REPAYE), Income- Contingent (ICR) and Standard Repayment. You do not have to work at the same place for ten years to qualify. How can I become eligible? Consolidating your loans with federal government can be a good first step when pursuing Public Service Loan Forgiveness. A Direct Loan Consolidation combines all of your federal loans into one new single loan (even previously ineligible loans like Perkins or FFELs can be included and become eligible). During the consolidation process you can also choose an alternative repayment plan. Student Loan Hero has a free tool that guides you through the consolidation process, and sets you up on an income- driven repayment plan to start moving towards forgiveness. Click the button below to learn more and start the Direct Loan Consolidation process. Start The Direct Consolidation Process > How do you apply for Public Service Loan Forgiveness? Fill out the Employment Certification Form each year, or as you change jobs. Submit the form to Fed. Loan Servicing. Fed. Loan Servicing will review your information and let you know if you qualify. They may ask for more information and ask for pay stubs, W- 2s, or other documentation. Fed. Loan Servicing will let you know how many qualified payments you have made, and how many payments you will need to make until you qualify for forgiveness. Once you become eligible, you will submit a PSLF application. It is currently not available, as the first rounds of loans to be forgiven is slated for October 2. Currently, there is no limit on the amount forgiven under Public Service Loan Forgiveness. In other words, the full amount of your federal student loans is eligible for forgiveness. If you have any additional questions, check out this nifty Public Service Loan Forgiveness Fact Sheet. Teacher Loan Forgiveness. Teachers are a key asset to the community and play an indispensable role in the lives of children. But it’s no secret that teachers are underpaid, which can affect how teachers pay back their student loans for their own education. Luckily, there is the Teacher Loan Forgiveness Program, which helps forgive a portion of debt. Who is eligible? Teachers who work at low- income schools are eligible for this program. Check out the Annual Directory of Designated Low- Income Schools for Teacher Cancellation Benefits to see if your school qualifies. Which loans are eligible? Direct Loans and Federal Stafford loans are eligible for student loan forgiveness for teachers. Unfortunately, if you only have PLUS loans, you are not eligible for this program. What are the requirements? You must teach in a low- income elementary or secondary school. You cannot have loans that originated before October 1, 1. Your loans must not be in default. Work full- time as a teacher for five consecutive years. Be a highly qualified teacher, which means obtaining state certification and holding a license in the state you teach in. Highly qualified elementary and secondary school teachers may receive up to $5,0. Teachers that are considered . You can have up to 1. Who is eligible? Full- time teachers at low- income public or nonprofit elementary or secondary schools or those that specialize in certain subjects, like math, science, and special education. There are other special circumstances that make teachers eligible for this program. These include: working in a private school that has its nonprofit status, working at an educational service agency or teaching in a designated subject shortage area. Which loans are eligible? Only the Federal Perkins Loans are eligible for this program. What are the requirements? Teachers must work full- time for a full academic year to qualify for loan cancellation. Qualified teachers are eligible to have: Qualified teachers are eligible to have: 1. Therefore, after five years of service, qualified teachers with Federal Perkins Loans can have 1. How do you apply? First you will need to request certain forms from the office that administers the Federal Perkins Loan program at the school that has your loans. You will need to provide various types of documentation, at the school’s request. The school handles determining whether you qualify or not for the loan cancellation. Special Teacher Forgiveness Programs by State. As the burden of student debt increases, some states are coming to the rescue in order to keep their workforce and help borrowers. A number of states have programs that benefit teachers — here is a sample of a few. New York. The New York City Loan Forgiveness program offers teachers working in certain shortage areas the opportunity to forgive a portion of their loans. The award amount varies, but its value is up to $2. Teachers must work for 6 years in an authorized New York City Department of Education school. Learn more about eligibility, requirements and the application. Texas. The Teach for Texas Loan Repayment Assistance Program can forgive up to $2,5. Learn more about the program here. Illinois. The Illinois Teachers Loan Repayment Program is awarded to teachers who work in low- income schools. You must work in a low- income school for 5 years. Teachers must be eligible for a federal loan forgiveness program — this program can make a matching award up to $5,0. Find out more information about the program here. Special Forgiveness Programs for Doctors by State. Doctors are an asset to society and a necessary part of public health. However, being a doctor comes with years of education and a hefty debt load. Luckily, these states offer some relief in the form of special forgiveness programs for doctors. New York The Regents Physician Loan Forgiveness Award Program can help physicians practicing in New York and award up to $1. Applicants must be licensed in New York State and have completed residency in the past 5 years. The focus on this program is primary care. Applicants must agree to work in a specific area or work with an underserved population. Find out more. In addition, there is also the Physician Loan Repayment – Qualified Educational Loan Repayment, which awards up to $1. Washington. Healthcare professionals like doctors, nurses, pharmacists and dentists can apply for The Health Professional Loan Repayment Program. This program awards up to $3. Healthcare professionals must provide primary care in an underserved or rural area. Get the full scoop on this program. Pennsylvania. Primary care practitioners such as doctors and dentists can get up to $1. Physicians must be licensed in Pennsylvania and meet certain requirements. Learn more about this program, which has one of the best awards we’ve seen. Special Forgiveness Programs for Lawyers by State. Lawyers are increasingly facing high debt loads as well as high unemployment — not a good combination. But certain states are offering help. Here is a sample of a few states offering forgiveness programs for lawyers. Washington D. C. The District of Columbia Bar Foundation Loan Repayment Assistance Program helps qualified attorneys by awarding up to $1. The program seeks to increase the amount of lawyers working with low- income communities. Applicants must be a D. C. Learn more. Florida. The Loan Repayment Assistance Programs for Lawyers awards up to $5,0. Applicants that work full- time or part- time for a year are eligible for having their loans forgiven annually. More info, including who to contact. Michigan. The John R. Justice Student Loan Repayment Program awards up to $1. Applicants can have up to $6. Attorneys must be licensed in Michigan and be in good standing with the bar. Find out more here. Forgiveness With Income- Based Repayment. While this isn’t a forgiveness program in the typical sense, you can get your loans forgiven through the Income- Based Repayment program. Through income- based repayment, your student loan payments are capped at 1. After making consistent payments under IBR for 2. It’s important to note that under current tax law, loans that are forgiven under this program can be taxed as income. Keep this in mind when pursuing this program, so you are not surprised by a potentially large tax bill.
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