Can you get your student loan forgiven?
Updated on April 17, 2020
If you owe a large amount of money on your student loans, you may be wondering if there is a way to get your loan forgiven. The answer is that there are options available, but it isn’t always possible to get the loan entirely forgiven. Here’s what you need to know about student loan forgiveness:
Student loan forgiveness is not the same as forbearance or deferral
If you are unemployed or underemployed, you could be eligible for deferment or forbearance. However, this is not the same as actually getting your student loan forgiven. You’ll still have to pay the loan after the deferment or forbearance period is over. If you get a deferment, interest will collect during the deferment period. However, interest does not collect during forbearance.
Income-driven repayment programs can reduce your monthly payments
An income-driven repayment program will reduce the amount that you pay by extending the amount of time that you have to pay back the loan. The standard repayment period for a student loan is 10 years, but an income-driven repayment program will extend it to 20-25 years. If you still owe money after this time period has passed, the rest of the balance will be forgiven.
Joining the Peace Corps or AmeriCorps can make it possible to get your loans forgiven
If you join the Peace Corps or AmeriCorps, you’ll be eligible for student loan forgiveness. Both of these organizations help to improve the lives of individuals facing poverty and other forms of hardship. The Peace Corps does work both within and outside of the United States, but AmeriCorps exclusively focuses on assisting communities within the US. These organizations offer a modest stipend for living expenses while you’re doing your part to help the community that you’re sent to.
Your occupation could make you eligible for student loan forgiveness
If you work as a teacher in certain regions or are employed in law enforcement, you may be able to get your student loans forgiven. In addition, some employers in the private sector offer partial or full assistance with student loans as one of their benefits.