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The Smart Student Guide to Overcoming Loan Forgiveness

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Types of Student Aid

Public Service Loan Forgiveness

This program is available to government or nonprofit employees. After they make 120 proper payments, the forgiveness program erases all their outstanding debt. It is one of the most popular and beneficial student aids.

Nonprofit Loan Forgiveness

If you work for a nonprofit or tax-exempt organization, you can get rid of your loans via the PSLF program. It means you still need to make 120 qualifying payments with income-driven repayment plans.

Government Loan Forgiveness

This program also includes the aspects of the Public Service Loan Forgiveness program available to federal, state, and local government employees.

Teacher Loan Forgiveness

As the name suggests, this program benefits educators. Teachers need to work in an underserved school in poor areas to be eligible. They can get a maximum of $17.5k forgiveness for their Direct or FFEL loans.

Nursing Loan Forgiveness

It is a generic name for available Nursing forgiveness programs. Different opportunities vary on requirements- mandatory service commitment period and award amount. However, they mostly require work in underserved hospitals.

Military Student Loan Forgiveness

Generally, a bunch of available repayment plans for Military students includes in this category. Their awards and eligibility conditions vary depending on the amount of Federal Student Loans, the branch of service, etc.

Discharge Programs

These programs are different from forgiveness. Your position or work experience does not matter for such aid. It usually offers benefits to people who suffer from school closure, bankruptcy, or have a disability, etc. Meanwhile, cancellation is very similar to forgiveness and is based on your work conditions.

Closed School Discharge

You can be eligible to discharge plan if your school closes when you are a student or soon after you graduate. Then, this program can erase all your debt from direct, FFEL, or Perkins Loans.

Perkins Loan Discharge

As it is both cancellation and discharge, more people can be eligible for this program. Depending on your work experience, you can get rid of Perkins Loans debt.

Permanent Disability Discharge

Though the names of these programs explain their purpose and eligibility, we need to mention that they are different from the previous Perkins program. These programs let not only Perkins loans but also Direct and FFEL loans to take advantage.

Bankruptcy Discharge

This program has many requirements and rarely benefits borrowers. Still, there is a chance for you to get a discharge if you declare bankruptcy.

Borrower Defense to Repayment

If your school does something against its promises or fails to provide proper educational service, then you can get your loans eliminated.

Our
Guide

If you already feel exhausted with the descriptions of programs in the previous section, well, this is just the tip of the iceberg. Each of these student aids has a lot more eligibility requirements and unique application processes. That is one of the main reasons why you need to get extra help from Forget Student Debt. In this section, we will explain more details of available programs to help you understand different forgiveness that falls under Federal Student Loans. However, if you have any questions or concerns, we are ready to help you immediately.
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Public Service Loan Forgiveness

Let’s start our discussion on forgiveness programs with the absolute best program. It assists students in getting rid of all their Federal Student Loans regardless of the amount of outstanding balance. This forgiveness program is available to government employees and nonprofit workers. If you work in one of those organizations, your position there does not matter.
There are some extra benefits to this program. First, you can work both full-time and part-time. Usually, when you work half-time, you are required to serve twice as much. However, in Public Loan Forgiveness, it is different. Instead of working for twenty years, you just need to find an additional workplace. The eligibility criteria explain that if your total work hours in more than one organization as a half-time employee sums to full-time work, then you can apply to this program.
However, there are also some downsides. First, it takes quite some time because you need to make 120 payments before application. If we consider that you make one payment per month, it will take at least ten years for you to apply. Also, payments only after the 2007 October matter. The bills that you paid before this time will not add up. Second, only Direct loan holders are eligible who also use Income-Driven Repayment plans. Yet, you can get the help of consolidation to turn your loans into a Direct loan.

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These programs are different from forgiveness. Your position or work experience does not matter for such aid. It usually offers benefits to people who suffer from school closure, bankruptcy, or have a disability, etc. Meanwhile, cancellation is very similar to forgiveness and is based on your work conditions.
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