Student loan forgiveness has been a hot topic lately, with many millennials citing costly student loans as the primary factor affecting their financial health. If you’re struggling with the weight of your student loans, know that help is available! You may be eligible for repayment assistance on your federal student loan, or to have the loan forgiven—however, there are strict eligibility requirements.
Student Loan Forgiveness for Teachers
Educators are an integral part of our community! Full-time educators who have been teaching for at least five complete and consecutive academic years may be eligible for student loan forgiveness. This applies to teachers working in certain elementary or secondary schools, as well as teachers in some educational service agencies serving low-income families. Additional qualifications apply, and you can learn more about the program here.
Public Service Loan Forgiveness (PSLF)
The public service loan forgiveness (PSLF) program provides loan forgiveness for employees working full-time in government or non-profit organizations after they have made 10 years of payments.
Income-Driven Repayment (IDR) Plans
An income-driven repayment plan is a great way to maximize your benefit from PSLF, but it can also provide a form of student loan forgiveness for people who are not government or non-profit employees. IDR plans lower your monthly payments, typically based on a percentage of your annual income. For many borrowers, a remaining balance will be forgiven after making a certain number of payments over a set period of time.
Student Loan Forgiveness for Veterans and Military Members
Active and former military members, we appreciate your service! You may be entitled to unique benefits and repayment options from the US Department of Education or the US Department of Defense. Learn more about the available programs here.
For those who have served in an approved AmeriCorps program (including AmeriCorps VISTA, AmeriCorps NCCC, or AmeriCorps State and National) the Segal AmeriCorps Education Award is available to help repay qualified student loans.
What if none of these situations apply to me?
Not an educator, government employee, or on an income-driven repayment plan? Additional options are available! The Federal Student Aid website contains a wide variety of scenarios in which student loans may be forgiven. For example, if you have declared bankruptcy, you may be eligible to have your loans forgiven. Other scenarios include disability, death, or if your school falsified your eligibility when you applied for the loan.
If none of the scenarios apply to your situation, and you’re having trouble making your federal student loan payments, help is still available. Reach out to your loan servicer and inquire about any accommodations, such as lowering monthly payments, consolidating multiple loans into one, or applying for deferment to temporarily postpone payments.
Without federal student loans, many students would not be able to afford the cost of tuition. However, student loans can be a significant source of financial stress after graduation. Briteside Solutions is here to help you build a brighter financial future. Visit our website or reach out to get in touch and learn more today.