Need to Know About Various Student Loan Forgiveness Programs? We Got You.
Here are five forgiveness programs you need to check out.
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Millions of adults hold federal student loans in the United States and many struggle with repayment. That’s why the government and other organizations offer various programs to provide relief. Each has advantages, disadvantages and qualifications to take into account when trying to pick the right one for you.
Here are some of the options:
Public Service Loan Forgiveness
Borrowers working for an eligible employer can have the remainder of their federal student loans forgiven after making 12 qualifying monthly payments.
This plan is available through the Department of Education for federal direct loan borrowers. If you have Federal Family Education loans or Perkins Loans that have been rolled into a direct consolidation loan, you may also qualify. You can determine eligibility with Federal Student Aid’s employer eligibility tool.
Teacher Loan Forgiveness Program
This program offers up to $17,500 in forgiveness to teachers with direct or FFEL program loans who teach full time for five consecutive years at an eligible school or organization that serves low-income students. To qualify, you must also be a state-certified teacher with a bachelor’s degree without having certification or licensure requirements waived on a certain base.
Health professional loan repayment
Organizations like the National Health Service Corps or the National Institutes of Health offer student loan assistance for qualifying health roles. The NHSC offers up to $120,000 in loan assistance while NIH offers up to $50,000 per year to healthcare professionals conducting qualified research. Eligible nurses might qualify for up to 60% loan payoff through the Nurse Corps loan repayment program in exchange for a two-year service commitment.
Service member loan repayment
U.S. military members could qualify for PSLF and other programs. For example, the U.S. The Army offers a program that repays up to $65,000 in student loans for qualifying members and the Coast Guard provides up to $60,000 in assistance.
Income-driven repayment
The Department of Education offers four income-driven repayment programs. These plans base your payments on your income and can significantly reduce your monthly payments. You could also have your remaining balance forgiven after making 20 or 25 years of qualifying payments.
For more information about student loan repayment options, visit https://studentaid.gov/manage-loans/repayment#repayment-plans.
Noah Johnson (he/him/his) is a Chicago-based journalist. Follow him on X: @noahwritestoo.
Edited by NaTyshca Pickett