STUDENT LOAN FORGIVENESS
What is student loan forgiveness?
Student loan forgivness is the cancellation of all or some portion of your remaining federal student loan balance. If your loan is forgiven, you are no longer responsible for repaying that remaining portion of the loan.
The Consumer Financial Protection Bureau estimates that one-fourth of the American workforce may be eligible for repayment or loan-forgiveness programs.
- Teacher Loan Forgiveness - Teachers must work at a qualifying school for five consecutive years to receive up to $17,500 in forgiveness on certain federal loans.
- Public Service Loan Forgiveness - This program is for those who work in federal, state or local government jobs, or at a nonprofit that's been designated as a 501(c)(3) tax-exempt organization. The CFPB estimates that a quarter of the country's workforce falls into those categories. Individuals must also have high student loan balances relative to their income.
- Income-Based Repayment Plan
- Pay As You Earn Plan
Remember, federal student loans are real loans, just like car loans or mortgages. You must repay a student loan even if your financial circumstances become difficult. Your student loans cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education (unless you couldn’t complete your education because your school closed). However, in circumstances such as certain kinds of teaching service, total and permanent disability, or the closure of the school where you were studying, your obligation to repay your federal student loan may be removed.
Choosing a Repayment Plan
You have a choice of several repayment plans that are designed to meet your needs. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Get details about repayment plans and calculate your estimated repayment amount under each of the different plans.
Student Loan Consolidation
Learn what it means to consolidate your loans, how to apply for loan consolidation, things to consider before consolidating your loans, the types of loans that qualify for consolidation, and what happens after you consolidate your loans.
Deferment and Forbearance
Deferment and forbearance offer a way for you to temporarily postpone or lower your loan payments while you’re back in school, in the military, experiencing financial hardship, or in certain other situations. Find out more about deferment and forbearance.
NEVER ignore delinquency or default notices from your loan servicer. If you don’t make your monthly loan payments, you will become delinquent on your student loan and risk going into default. Contact your servicer immediately if you are having trouble making payments or won't be able to pay on time. Learn about federal student loan default: Find out what may happen if you default, what steps you can take to keep your loan from going into default, and what your options are for getting out of default.
If you have a dispute about your loan, you may be able to resolve it by simply contacting your loan servicer and discussing the issue. If you need additional help, find out what you can do to be better prepared before you seek help to resolve a dispute.
For more info visit: http://studentaid.ed.gov/repay-loans