People who have taken out student loans frequently worry if it is viable to get their federal student debts forgiven or to receive assistance in repaying them. Yes, the answer is yes.
However, there are precise eligibility standards you must complete to qualify for student loan relief or repayment support. Loan forgiveness implies that you do not have to repay some or all your loan.
You never know what you could qualify for, so check out the possibilities mentioned below.
One-Time Student Debt Forgiveness
The U.S. Department of Education (ED) offers one-time student loan forgiveness as part of the Biden-Harris Administration student loan relief plan. If you got a Federal Pell Grant, you may be eligible for loan relief of up to $20,000. If you did not earn a Federal Pell Grant, you may apply for debt relief of up to $10,000. If your income is less than $125,000 (or $250,000 for families) and you have ED loans, you are entitled to this relief.
Student Loan Forgiveness for Teachers
If you teach full-time for five whole and continuous academic years in certain elementary or secondary schools or educational service organizations that serve low-income families and fulfill additional conditions, you may be eligible for up to $17,500 in student debt forgiveness.
Service in the Military
Both ED and the U.S. Department of Defense offer additional benefits for your student loans as a recognition for your service to our nation. Benefits include interest rate restrictions under the Servicemembers Civil Relief Act and Department of Defense student loan repayment plans.
Applicants who complete a term of national service in an authorized AmeriCorps program—AmeriCorps VISTA, AmeriCorps NCCC, or AmeriCorps State and National—are eligible for the Segal AmeriCorps Education Award. After completing your service, you can apply for a Segal AmeriCorps Education Award, which helps to repay qualifying student debts.
Income-Driven Repayment (IDR) Relief
Your income and family size determine the monthly payment for an IDR plan. If you pay back your student loans under an IDR program, any leftover sum will be forgiven after a specific number of payments over 20 or 25 years.
Due to the one-time IDR modification, previous periods of repayment, deferral, and forbearance may now count toward your IDR forgiveness.
Borrowers with certain non-Direct loans may need to act before May 1, 2023, to take advantage of this change.
Public Service Loan Forgiveness (PSLF)
If you work full-time for the government or a non-profit organization, you may apply for forgiveness of your whole outstanding debt on your Direct Loans after making 120 qualifying payments—that is, 10 years of payments. To take advantage of PSLF, you must repay your federal student loans through an income-driven repayment (IDR) plan.
The government has several ways to help people repay their student loans or get student loan relief. If you are not sure which option is best for you, contact Student Loan Forgiveness USA. We will help you make this process easier!