Federal Student Loans and Debt Relief

Federal student loans can be a lifesaver for many students. They are an easy answer to exorbitantly high fees that are difficult to pay in one go. But, only as every action has an equal and opposite reaction, your federal student loan could turn around and bite you when you least expect.

If you are having trouble paying monthly fees, then you are not alone. Many students who have taken federal student loans suffer one way or another due to huge repayment debt. The good news is that you might just be eligible for a federal student loan debt relief program. There are many programs out there, so you may qualify for at least one of them. No matter the plan, in the end, you might just save tens of thousands of dollars that you would otherwise have had to pay off. 

The goal of this article is to inform you about the critical aspects of federal student loan debt relief: the dos and don’ts, and even the most absolute need to know the information. So, without further ado, let’s get this loan show on the road.

Federal student loan forgiveness programs

The best time to benefit from a federal student loan forgiveness program is now. Backed by popular demand, these forgiveness programs have become very easy to qualify for, and even more potent as solutions. 

Almost every person who has gotten some sort of federal student loans will have a chance to apply for a forgiveness program. This can even be easier for you if you are willing to change your career. The reason behind this is, federal student loans are given considering your future job. If you are thinking of changing your profession, you might be faced with a different annual income; hence, the chance to be forgiven. 

It does not matter if you owe the Government several hundred thousand dollars or a few thousand. Any amount of federal student loans can be forgiven. Your respective debt forgiveness program can help you resolve the issue. In some cases, students have a significant part of their loans erased, while others have all of them gone!

If you are having trouble paying monthly fees, then you are not alone. Many students who have taken federal student loans suffer one way or another due to huge repayment debt. The good news is that you might just be eligible for a federal student loan debt relief program. There are many programs out there, so you may qualify for at least one of them. No matter the plan, in the end, you might just save tens of thousands of dollars that you would otherwise have had to pay off. 

The goal of this article is to inform you about the critical aspects of federal student loan debt relief: the dos and don’ts, and even the most absolute need to know the information. So, without further ado, let’s get this loan show on the road.

Get Your Free Assessment

Subscribe and get notified when we launch our platform and be one of the first to try it for free for an entire year. Already subscribed?

Obama’s student loan forgiveness

Even though previous president George W. Bush brought the whole student loan forgiveness idea to the table in 2007, President Obama was the one who tried to push for significant reforms. The goal of Obama’s student loan forgiveness efforts was to make sure lots of students became eligible for the program. Another goal of the previous President was to ensure that the benefits were rolled out faster than before. 

Don’t be confused by the name “Obama’s student loan forgiveness program,” because this does not refer to a particular program. It was a name that referred to a series of updates that were introduced to the whole student loan understanding. Obama added updates to existing student loan laws that include the Federal Student Loan forgiveness plans you know today. 

Income-based repayment

The income-based repayment plans have gotten a few name changes over the years. Pay as you earn loan repayment system has transformed into the Revised Pay as you Earn Student Loan Repayment Plan. These forgiveness plans are seen as the best way to reduce monthly bills without harming your chances to access other Federal loan forgiveness benefits. 

If you are ever planning on entering the Public Service Loan Forgiveness Program, you will need to enroll in an income-based student loan repayment plan. You can thank Obama for this chance to have your loan forgiven based on your service. 

Public Service Loan Forgiveness Programs.

The public service loan forgiveness program (PSLF) can be seen as the holy grail of all federal loan forgiveness programs. This federal student loan repayment service offers forgiveness of all debts in return for undertaking ten years of public service duties. You might ask, what is public service? Well, the definition can change, but you can be sure that it refers to a job where you work as a federal employee. You can work as a federal employee in Local or State government positions. The borrower can even be eligible if he or she works as a Non-profit employee. 

These will include all types of jobs that may not seem like a public service. You could work in law enforcement, public safety, public health services, emergency management, early childhood education, military service, public education, school-based services, and public interest law services. 

If you are carrying the weight of having excessive federal debt, you should consider changing careers. Try finding a role that best suits you and qualifies for the public service loan forgiveness. It is such a powerful means of resolving debts that almost every expert recommends it to students. 

The best way to qualify for PSLF is to be enrolled in an income-based repayment plan. Don’t forget that you also have to make your monthly payments regarding your student loans. Hence, if you are considering the public service loan forgiveness plan, just make sure that you have made payments while enrolling in an income-based program. 

President Trump’s loan forgiveness plan

The American nation may still be divided on the matter of President Trump doing his duties well to lead the country. But one thing is certainly clear; he had good student loan resolvement offers while being a candidate. They would have even taken the Obama loan forgiveness and made them better. But as with any politician, often the promises made are empty ones. 

Trump has taken the matter further by calling to eliminate the public service loan forgiveness program in general. Due to the new annual budget plans, Trump is trying to push Congress to end the public services loan forgiveness program. This deal is meant to be included in the 5.6 billion dollar cut in the funding of the US Department of Education. So, if the budget proposed by President Trump is accepted, you might see the PSLF abolished as a whole. 

President Trump and the Secretary of Education Betsy DeVos have made it clear that they believe by dissolving the Public Services Loan Forgiveness, they will be doing a big favor. This favor will come to the Government’s aid in that the needs of both the federal taxpayers and borrowers will become balanced. You might have understood by now that, the whole point of this shenanigan is to save the Government from losing billions of dollars in federal student loans. If the law is passed, then the US Government will be receiving the money it has given out as loans to millions of American students. Most government officials argue that this will actually attract more individuals to public services and non-profit jobs and keep them there. It’s no secret that these jobs pay much lower salaries than private sectors. 

Federal, State, and the Local Government Employee Loan Forgiveness Programs

The Federal, State, and the Local Government Employee debt Forgiveness Programs do not differ all that much from the Public Service Loan Forgiveness Programs. In some places, you might even see the program be named as the Government Worker or Federal Employee Student Loan Forgiveness Program. Whatever the name, you might have already understood that the program requires you to work in a government sector to resolve your debts. 

It should already be clear that the Public Service Loan Forgiveness (PSLF) program will eradicate your debt to the Federal Government after you have served a Public Service role for some time. You need to be making ten years’ worth of on-time payments every month to fulfill these roles. These payments will be made under the income-based federal student loan repayment plans. 

Federal student loan forgiveness programs

The best time to benefit from a federal student loan forgiveness program is now. Backed by popular demand, these forgiveness programs have become very easy to qualify for, and even more potent as solutions. 

Almost every person who has gotten some sort of federal student loans will have a chance to apply for a forgiveness program. This can even be easier for you if you are willing to change your career. The reason behind this is, federal student loans are given considering your future job. If you are thinking of changing your profession, you might be faced with a different annual income; hence, the chance to be forgiven. 

It does not matter if you owe the Government several hundred thousand dollars or a few thousand. Any amount of federal student loans can be forgiven. Your respective debt forgiveness program can help you resolve the issue. In some cases, students have a significant part of their loans erased, while others have all of them gone!

If you are having trouble paying monthly fees, then you are not alone. Many students who have taken federal student loans suffer one way or another due to huge repayment debt. The good news is that you might just be eligible for a federal student loan debt relief program. There are many programs out there, so you may qualify for at least one of them. No matter the plan, in the end, you might just save tens of thousands of dollars that you would otherwise have had to pay off. 

The goal of this article is to inform you about the critical aspects of federal student loan debt relief: the dos and don’ts, and even the most absolute need to know the information. So, without further ado, let’s get this loan show on the road.

Best aspect

The best aspect of the program is that it will be available for anyone that is planning to work in any sector of the Government. This Government Employee Loan Forgiveness Program will cover any level. Hell, even the President himself can use the program. You could serve in the Military, and also work as a Federal, Local, and State Government Employee. The possibilities are endless. 

Another significant aspect of the program is that, even if you do not currently qualify for PSLF, you can! The only thing you need to do to qualify is to find the job you are comfortable with the undertaking, and just apply. You can eliminate all of your outstanding debt by enrolling in one of the income-based repayment plans. The only downside is, you will need to squeeze your teeth for ten years while making payments on time. In the end, all of the debt you have left will be poof, gone!

The best part of the PSLF program is that the amount of money owed can be limitless. Well, not literally, but there is no set amount. As long as it is a federal student loan, it will be forgiven. You could owe the Government 10,000 dollars, or 1,000,000. It will all be gone as soon as you pay off that last payment in the 120th month. What will really make your day; however, is the fact that you do not even have to worry about taxes! That’s right, no taxes for the forgiveness you will receive as a result of the program. 

The Non-Profit Employee Student Loan Forgiveness Program

The benefits of the Public Service Loan Forgiveness Program (PSLF) reach far beyond the Government Employees’ options. If you ever decide to become a Non-Profit 501(c)(3), you, too, can take advantage of PSLF as long as you have taken federal student loans. Just as with the Government Employees program, if you manage to clock in ten years of full-time work, your loans will be forgiven. All you have to do is find a qualifying job as a Non-profit 501. 

Requirements

You will have to make your 120th qualifying payment to reach the end of the program. As you might have understood by now, qualifying means that the payments were made on-time and in full. You will also have to be enrolled in an income-based repayment plan. It is the same case with all of the Government based work plans. Working full-time at any non-profit organization or company is also a must. 

Benefits

As with the other programs, the non-profit employee student loan forgiveness program also comes with a great advantage. One would argue that the best aspect of all this is the fact that there are no taxes involved. Like the federal programs offered before, in the end, you will not be worrying about a massive check from the IRS. Knowing the amount of taxes one might have to pay in the US, this can be a lifesaver. 

This may not seem too crazy at the moment, but lots of student loan forgiveness programs will clear your debts in return for massive amounts of tax. You will have to report to the Federal Government the amount of debt forgiven, which will come back to you from the IRS with a taxable income bill. This will be calculated based on the amount of debt that has been forgiven for you.

Military Student Loan Forgiveness Programs

Besides having the best Military in the world, the US has some of the best Student loan forgiveness programs for its military personnel. Apart from Public Service Loan Forgiveness (PSLF), they also have access to other effective Federal student loans relief options. Other than the apparent PSLF program, they can even enroll for the Military College Loan Repayment Program. This relief program is only available to Military service members. 

Depending on service, the benefits will be determined by the Military Occupational Specialties (MOS) and the Service Branch. Out of all of the military branches, the Navy and the Army have it good for themselves. But the Coast Guard, Air Force, and the Marines also have some sort of relief program for students with federal student loans. 

Things to remember!

The forgiveness programs on offer by the Military can change frequently. They vary depending on the number of recruits needed. So before running to join the US military, make sure to operate on the newest information. Making your decision based on obsolete data can do more than ruin your day! Remember always to double-check what is available for you. 

Out of all federal services you can undertake to relieve your student debt, the Military has the upper-hand. Since the US Government pays close attention to and takes care of its personnel, you might also have access to tons of different educational benefits regarding the Military. So always make sure to weigh your options and make your final decision. 

Apply for Student Loan Forgiveness Help

If you struggle with university student loan forgiveness, then you should get help with that. Because the employees in these agencies are dealing with the student loans every day and they have enough experience for solving different kinds of student loan problems.

Nursing Student Loan Forgiveness Programs

Nurses do not have it bad either when it comes to federal student loan relief programs. You could even argue that some of the best Federal student loan debt forgiveness is offered to Nurses. You should consider this program more often than the Military ones, because in the end you will be saving lives rather than taking them! The US government sees Nurses as invaluable to society because of the hard work they put in and the contributions they make.  

This debt relief program comes with tons of subprograms that give financial relief to all kinds of Nurses. You could be working as a Health professional in areas that have shortages, Nurse educator, and more. Whichever your choice may be, you will still be benefiting from the program. 

Here is a shortlist of some of the programs that are on offer;

  • NURSE Corps Loan Repayment Program
  • Perkins Loan Forgiveness for Nurses & Licensed Medical Technicians
  • NHSC’s NURSE Corps Scholarship Program
  • NHSC’s Loan Repayment Program
  • Nursing Student Forgiveness Programs which are State-funded
  • Nursing Loan Forgiveness Programs which are privately funded

Make sure to consider your options, and find the best program that suits you!

Dentists and Doctors’ Student Loan Forgiveness Programs

Continuing the priority set for employees in the medical field, the US government also has great debt relief programs for both doctors and dentists. These federal student loan relief efforts are made possible by the NHSC Students to Service Loan Repayment Program. You can sometimes see the name be abbreviated to S2S LRP. 

The main goal behind the creation of the S2S LRP program was to push dentists and doctors to work and live in areas that are short on professionals in this medical field. The term commonly used to describe such places is called a Health Professional Shortage Area. These areas are mostly rural and inner-city locations. 

You might be offset to work in such areas, especially if you consider the fact that you can be making way more in major cities. But it’s good to know that the S2S LRP program can offer you relief from up to $120,000 worth of federal student loans. Knowing this will make you think twice before skipping over this option that you have. 

Teacher Student Loan Forgiveness Program

All around the world, teachers have always been underappreciated and underpaid. This is, unfortunately, also true for the United States. But when it comes to federal student loans, and getting relief from them, they do have the upper hand. When it comes to getting federal student loan debt relief, teachers do have some excellent options. 

There are currently various programs that are on offer. If you ever decide to become a teacher to relieve your student loan debt, there are plenty of positions you can undertake. You will mainly be lucky if you choose to teach in Special Needs, STEM, or in many regions that have shortages of teachers. Selecting any of the areas above, you could be relieved of tens of thousands of dollars in federal student loan debt. 

Specific Programs to apply for:

Here are some particular forgiveness programs you can use for when choosing to work in the field of education:

  • Stafford Loan Forgiveness Program
  • Perkins Loan Cancellation Program
  • Federal TEACH Grant Program
  • HRSA’s Healthcare Faculty Loan Repayment Program

Besides the programs mentioned above, you can also be eligible for the Public Service Loan Forgiveness program. Whatever your case maybe, if you choose to teach others, and need help dropping your Federal Debt, you can find many options out there. 

Federal student loans programs based on States

There is a great nuance to look out for when it comes to getting federal student loan relief. Since every State in the US has its functioning Government body, sometimes you could be acting on old news. It is highly recommended that you check with your local State regarding relief programs and whether they are still available or not. 

Different states offer different relief programs for federal student loans. Most of the time, the benefits are given based on the student’s career choice. If you decide to become a doctor, nurse, lawyer, or any public service member, you will be set as a priority. 

In conclusion, you can never know which programs are available until you do your research. With the ongoing governmental changes in the US, the programs can change overnight. You will need to be on your toes, especially if your State is going through budget and funding issues. So make sure to always thoroughly check what is available for grabs before you waste your time with expired programs. Even some details can change in specific programs, after filtering out your program of choice, make sure also to do research about the particular program. It’s also worth noting that, you should not stick to local programs, check programs that might be available nation-wide. 

The Federal Student Loan Discharge Program

There are some essential facts you will have to know before applying for a federal student loan discharge program. First of all, it is necessary to see the difference between a Student Loan forgiveness program and a student loan discharge program. Although both programs are designed to wipe out your federal student loans, there are key differences.

Both discharge and forgiveness programs will be wiping out either a percentage, or the full amount of debt you have. The main difference between them is that discharge programs happen immediately, whereas, forgiveness programs are a working progress. From the other forgiveness programs mentioned above, you might already understand that forgiveness programs will require you to work in a field for a set amount of time, while making on-time payments. But if you qualify for a discharge program, your debt will be gone instantly. 

The challenge

There is a significant challenge you have to overcome when it comes to student loan discharge programs. Since you will not have to pay a single penny anymore regarding your federal student loans, it can be a pain to qualify for the discharge program. In most cases, you will have to report the amount you have been discharged to the good old IRS. If you know what the IRS is, then you already know that you will have to pay taxes concerning your discharge. Most of the time, the taxes will be income-related. 

But do not let the IRS part scare you from the idea of a loan discharge program. Because almost certainly, you will end up paying a fraction of your overall loan. In the end, it is better to pay 2,000 dollars in taxes than say spending 20,000 dollars in student loans. At the end of the day, you will be the apparent winner. 

Discharge programs on offer

There are currently a number of student loan discharge programs:

  • A Borrower’s Defense Against Repayment Program
  • Federal Student Loan Bankruptcy Discharge Program
  • Closed School Student Loan Discharge Program
  • Total & Permanent Disability Discharge Program

Just as with any student loan relief program, you should do your research. Acting accordingly with laws and regulations, will help you make the right choice. 

Closed School Student Loan Discharge Program

The closed school student loan discharge program can be seen as one of the easiest ways to get rid of federal student loans. As you might have understood by now, one of the primary qualifications for the program is to attend a school that has shut down. You will still have to be attending the university or college at its time of closing to apply. 

It should be clear to you by now that the number of people eligible for this program is minimal. If your place of education is well and running, do not waste your time by investigating the program. But if you are part of the small percentage that does apply for the program, then you are more than lucky! All you will have to do is apply for the program at the time of the school’s closure or within the 120 days. If you miss these deadlines, things could get very frustrating for you. You might even miss the train on that one, so make sure to keep your eyes open!

More hope

You might be delighted to hear that there is even more hope for the program. Considering the fact that President Trump and Secretary of Education Betsy DeVos are looking to shut down Federal Relief programs, the closed school student loan discharge program is relatively safe. This program is one of the only programs that the Secretary and President have not attacked. Even more good news is that the program is being reviewed and approved in a steady way. Regulations are not being delayed or abandoned. This is excellent news because other programs like the Public Service Loan Relief program are on the verge of being dissolved, and many others are taking ages to get approved. 

Final Verdict

Never forget to speak with your local governmental authorities regarding federal loan forgiveness programs. Having a real person to talk to regarding the issue can prove to be more helpful than reading hundreds of pages. The reason for this is, you can give all the questions in the world, and receive answers to them immediately. It is important to note that, you should never fall for scams that can prey on your desperate situation to make you fall into even bigger monetary issues. So, continue to do your research and keep your head high, because there is always a program out there that can fit your needs!

The final verdict is always yours. There are tons of Federal student loan relief programs for you to choose from. Using these programs, you can start your career in the fields you enjoy and dissolve your federal student loans at the same time. Hopefully, you were able to gather sufficient information regarding your case. You should, however, continue to do more research from various sources. The more concrete your focus area becomes, the easier it will be for you to apply.