Ever wonder what life would be like if you could make your student loans disappear?
Its possible, but it isnt magic.
Check out this guide to student loan forgiveness so youll know all your options.
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What Are Student Loan Forgiveness Programs and How Do They Work?
Student loan forgiveness programs are government-backed avenues for having your loans forgiven, depending on your situation.
The programs are only available for borrowers with federal loans who meet certain criteria.
Before we dig into individual programs, lets cover the ground rules.
They mean you no longer have to pay the remaining balance on your federal loans.
Weve broken down the programs by work and non-work qualifications.
With that in mind, lets dive in.
The PSLF program gota reboot in 2021, however.
Previously ineligible loans and repayment plans became eligible, including FFEL (Federal Family Education Loans).
And some overly restrictive rules were done away with.
Use thePSLF Help Toolto find out if you meet other requirements to qualify.
No one goes into teaching for the money.
Fortunately, theres a specificTeacher Student Loan Forgivenessprogram for those who work in underserved communities and/or subject areas.
At least one of those years needs to be after the 1997-1998 school year.
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Student Loan Discharge That Isnt Based on Employment
Not taking the employment path to loan forgiveness?
Then youll likely be seeking forgiveness based on your economic status or a catastrophic circumstance.
At the end of the repayment period, any remaining debt is forgiven.
But its not as simple as it sounds.
And forgiveness will take a while: Income-driven repayment plans span 20 to 25 years.
Still, these plans can make paying on your student loans more manageable and help you avoid defaulting.
To qualify, youll need to apply forone of these plans.
Each has its own rules.
Because Plus loans for parents are so restrictive in terms of repayment options, receiving forgiveness is particularly difficult.
[The student loans] would essentially be contaminated by the parent loans.
Struggling with student loans is stressful enough without also dealing with a disability.
Its not a pleasant topic to consider.
Parent Plus loans are discharged if the parent or the student dies.
Check out this article for more info aboutwhat happens to student loans when you die.
You may have heard that student loans cannot be discharged in bankruptcy.
Thats true… most of the time.
Dont get too excited.
Youll need to ask your loan servicer for a loan discharge program.
For more details about the program, check out the Department of Educationsclosed school dischargeprogram.
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Listen, we know its tough out there.
But theres no shame in asking for help.
These companiesmake it easy to help yourself and your bank account.
With student loan forgiveness, discharge and cancellation, you are no longer required to make loan payments.
Each loan forgiveness program has different qualifiers and applications.
Visit theFederal Student Aid websiteto find out if you qualify and how to apply.
Tiffany Wendeln Connors is a former staff writer/editor at The Penny Hoarder.
Robert Bruce contributed to this article.
