5 student loan forgiveness programs you should know about
Updated on January 3, 2020
Managing student debt can be extremely overwhelming. But that’s what millions of borrowers are going through every day. Currently, student loan debt is one of the highest consumer debts, accounting for nearly $1.5 trillion.
Unfortunately, these loans are making it difficult for graduates to even buy homes. The good news is that some student loan forgiveness programs might help. So if you’re a borrower, here are some of them to consider.
Income-Driven Repayment Forgiveness
If you have a large outstanding balance in comparison to your income, then the federal government’s income-driven repayment forgiveness program is perfect for you.
This plan allows you to set your payments at a fraction of your monthly income. However, your outstanding balance will only be eligible for forgiveness after about 20 years.
Teacher Loan Forgiveness
As the name suggests, this student loan forgiveness program is designed to help teachers working full-time in low income public secondary and elementary schools. To qualify for the program, you must have worked for at least five consecutive years and have taken the loan after October 1998.
Public Service Loan Forgiveness (PSLF)
PSLF is available to nonprofit and government employees with student loans. But to be eligible, you must make payments while registered in an income-driven repayment program. So if you’re a government or nonprofit employee, find out if you qualify and seize the opportunity.
Nurses’ Student Loan Forgiveness Plan
Nurses struggling with student loans have a wide range of options to consider, including:
• Nurse Corps
• Perkin loan cancellation
• Public service forgiveness
Since the Nurse Corps plan is very competitive and few nurses have Perkin loans, public service loan forgiveness is the most suitable option for many.
There are other student loan payment assistance or forgiveness programs that you can consider. However, eligibility may vary widely depending on where you work and your profession.
• State-Sponsored Programs
Some states like Mississippi offer to pay up to $3,000 per year for some teachers. So it may be wise to inquire from your state’s education department if they have such a program for your profession.
• Military student loan assistance program
• Student loan repayment assistance programs
Know of other programs that offer student loan forgiveness plans? List them in our comment section below.