The Student loan forgiveness plan was proposed in August 2022 to get rid of $441 billion worth of student debt. You must have felt relieved hearing about the plan. Hearing the news that the Supreme Court has ruled out Joe Biden`s student loan relief plan might have left you disappointed.
There are other initiatives put in place to ease borrowers of their debt burden. This article will explain other loan forgiveness options that you can take advantage of. You will know how to apply for student loan forgiveness through other means apart from the ruled-out relief plan.
What Is Student Loan Forgiveness?
Student loan forgiveness means some or all your debt was canceled. This means another entity paid the loan and you don’t have to refund the person or entity. Several federal programs can cancel or discharge your student loan repayment.
Who Can Apply For Student Loan Forgiveness?
You have to do your part for your student loan to be forgiven. Most student loan forgiveness programs require that you are an employee at a federal institution or non-profit organization.
- Income-Driven Repayment Plan (IDR)
- Nurse Corps
- Public Service Loan Forgiveness (PSLF)
- Teachers Loan Forgiveness
How To Apply For Student Loan Forgiveness
The kind of student loan forgiveness program you want to opt in for will determine your mode of application. The application processing will vary across the different programs. Here is how you can apply for the following programs.
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Teacher Loan Forgiveness
The loan forgiveness program of Teacher does require you work full-time for five years in any education service agency or low-income school. After five consecutive years of teaching, you can submit your Teacher Loan Forgiveness Application to your student loan servicer.
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Income-Driven Repayment Plan (IDR)
You can apply for IDR loan forgiveness after paying your student loan for 20-25 years. You can qualify for your remaining loan forgiven provided that you`ve been paying back your loan as of when due for all these years.
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Nurse Corps
You will need to create an account with the Health Resources and Services Administration customer service portal to submit your application. Your student loan forgiveness application will be processed online through the HRSA portal.
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Public Service Loan Forgiveness (PSLF)
This loan forgiveness program requires you to submit a Temporary Expanded PSLF certification and application to your loan servicer using the PSLF Help Tools.
The PSLF loan forgiveness program also requires that you work full-time in a non-profit organization or federal agency for ten years. You must have made 120 repayments of your student loan in 10 years to qualify for the loan forgiveness program.