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What is a student loan forgiveness program?

I have been a beneficiary of the direct student loans for the past three years of university. However, I’m aware that I need to start preparing for my federal student loan payment next year when I complete my studies.

I have recently heard about a student loan forgiveness program that started a few years and I would like to know more about its work. I would like to apply if I’m eligible. I would also like to know whether there are other student loan relief programs apart from this one.

Whitney Matthews

in Student Loans

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Aaron Lee on March 16, 2018

Student loans forgiveness program refers to the complete discharge from the responsibility of repaying your student loans. This usually applies to federally provided student loans e.g. Federal Perkins Loans and Direct Student Loans.

Not many students qualify for this program. The requirements for eligibility depend on the loan type, occupation etc.

Federal student loan payments can be very tasking. This is due to the various issues that might arise such as unemployment, sickness, the death of the loaned etc. The following are some of the student’s loan relief programs for specific situations:

STATE-SPONSORED ASSISTANCE PROGRAMS

This is available in selected states in the US. Professionals in teaching, healthcare and law can qualify for this program. For you to be considered you ought to be employed or commit to working in high-need areas or underserved locations for a specified duration.

Examples include the Mississippi Repayment Program for teachers. It pays a maximum of $3,000 yearly for four years. The target is teachers with undergraduate student loans who are licensed to teach in a specified location determined by the servicer.

In case your job is not within the fields mentioned above, feel free to contact the higher education department in your state to know if there are other programs that you are eligible for.

FORGIVENESS AND ASSISTANCE PROGRAMS FOR MILITARY STUDENT LOANS

People in the Navy, Army, National Guard and Air Force qualify for certain relief programs.

For instance, qualifying personnel from the National Guard can receive a maximum of $50,000 towards repaying their loans.

LOAN REPAYMENT PROGRAMS (LRAPS)

There are other organizational and national loan repayment assistance programs for students that cater to professionals in the public service. An example is the National Institutes of Health. This provides a maximum of $35,000 loan repayment assistance every year to qualified people in the health sector. The recipients are identified by the institute to undertake research.

STUDENT LOAN DISCHARGE PROGRAMS

The following are instances in which your loan can be completely discharged.

  • Discharge due to school closure:

You are eligible for a complete discharge from your loan repaying responsibility if your school closes down. It is mandatory that you must have been admitted or stopped schooling within 4 months without a degree before the closure of the school.

You are required to keep making repayments while your application is being considered. If successful, this can be refunded and no further payments should be made.

Emily Alexandera year ago

Information provided in the answer to student loan relief programs is true. I would like to add some more information on the factors that can result in your loan repayment being discharged. These are:

REPAYMENT DISCHARGE DUE TO BORROWER DEFENSE

If you were defrauded by your college during your loan application, you are eligible for a loan relief. You are required to file and submit a borrower repayment claim at the Department of Education in the US.

If approved, all your loans will be discharged. This is at the volition of the Department of Education Department in cases where there were widespread incidences.

DISCHARGE DUE TO TOTAL AND PERMANENT DISABILITY

Your student loan can be canceled in case you get permanently and totally mentally and physically disabled. This will mean you cannot work anymore.

To qualify for this, you are required to provide relevant documents proving your disability.


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