Types Of Student Loan Forgiveness Plans

February 20, 2019

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It isn't cheap to attend college with the average bachelor degree attached with around $30,000 in student loan debt, paying loans back can be a challenge. However there some programs that can have a portion of your balance forgiven. You may qualify for the Public Service Loan Forgiveness program if you are employed full time at a government agency (federal, state or local) or a non-profit 501(c)(3). As with all programs that forgive debt, it isn't as simple as getting a job with the government or non-profit.  Your direct subsidized and unsubsidized loans, PLUS and consolidated loans quality if you are in any of the income-driven repayment plans (monthly payment based on your income), you must be in repayment for at least 120 months (10 years) and length of employment are all factors. Other forgiveness programs are all based on reduced monthly payments based on income which generally kick in after 10 years of repayment. There is another type of income-driven repayment plan called Pay As Your Earn (PAYE) Forgiveness, which caps your monthly payment at 10% of your discretionary income, and you qualify if your payments would be less than your standard 10-year payments. However you can expect to pay on your loans for 20 to 25 years and make those payment on time in order to have the remaining balance forgiven.  There are also loan forgiveness programs for doctors, pharmacists and other healthcare professionals who work in a Health Profession Shortage Area which will pay up to $50,000 in loan repayment in exchange for at least a two-year service commitment. The Nurse Corps Loan Repayment Program is offered to nurses who work in a critical shortage facility for two years in which 60% of unpaid loans are forgiven. Health professionals who work to combat the nation's opioid crisis may have up to $75,000 of their loans forgiven in exchange for a three-year commitment to provide substance use disorder treatment services. Loan Forgiveness for Teachers forgives up to $17,500 if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency (CLICK HERE FOR SCHOOLS THAT QUALIFY). There are even loan forgiveness programs for lawyers who work for three years at the Department of Justice might qualify for $60,000 in assistance. Ultimately, contact your loan servicer for details no these programs to see if their benefits are worth your commitment to the guidelines.

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SOURCE: Lifehacker

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