6 Ways to Get Student Loans Forgiven

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Dealing with a large amount of debt can be overwhelming. So it’s natural to question how to get out of student loan debt while paying your debt. You aren’t the first to ask if there is a legal way to avoid paying your student loans, such as filing bankruptcy.

The truth is that declaring bankruptcy to discharge your student loans is quite tricky. However, other choices, such as federal forgiveness programs or options that make monthly payments more manageable, such as income-driven repayment plans, may help you reduce the amount of money you owe.

Let’s find out more. 

6 Effective Ways To Get Your Student Loans Forgiven 

Student Loan Forgiveness Programs

If you have federal student loans, you can apply for a variety of loan forgiveness programs, depending on their eligibility. These programs can help you avoid paying a portion of your student loan debt by forgiving the balance after a set period.

Each forgiveness program has its own set of eligibility requirements.

  • Teacher Loan Forgiveness

Highly qualified teachers’ loans are erased under this federal student loan forgiveness program. Teachers who meet the eligibility conditions may get up to $17,500 or $5,000, depending on their teaching subject. Teachers who have completed five years of employment can apply for this loan forgiveness program.

  • Perkins Loans Cancellation and Discharge 

This program is for people who undertake certain forms of public service or work in particular occupations. According to the Department of Education, a percentage of the loan may be forgiven for each year of service. Of course, the proportion will differ based on your employer and work type.

Here’s a list of those who might be eligible for Perkins:

  • Participate in the Peace Corps or the ACTION program as a volunteer and VISTA.
  • Teacher.
  • A worker at Head Start.
  • Worker in the field of child and family services.
  • A service member in the armed forces (serving in areas of hostilities).
  • A medical technician or a nurse.
  • Early intervention services are provided by a professional.
  • Doctor And Health Professional Loan Forgiveness. 

Doctor loan forgiveness may be available to specific borrowers, especially if they are willing to work in underprivileged areas.

The following are some instances of state-run programs:

  • The Rural Physician Loan Forgiveness Program in Minnesota. It pays practicing physicians up to $25,000 a year if they agree to work in rural Minnesota for at least three years.
  • Medical loan forgiveness is also available through the Army, Navy, and Air Force.
  • Income-Driven Repayment Plans 

Income-driven repayment programs tie borrowers’ monthly loan payments to their income for federal student loans. Depending on your eligibility, they may cap your monthly payments between 10% and 20% of your salary, depending on the income-driven repayment plan you choose.

The repayment time for income-driven repayment plans ranges from 20 to 25 years, depending on the precise plan chosen by the borrower. Borrowers can use income-driven repayment programs to make their loan payments more reasonable. On the other hand, extending the loan term may result in you paying more interest throughout the life of the loan than you would under a different repayment plan.

Any outstanding loan balance may be forgiven after the loan period. However, keep in mind that the IRS may regard the forgiven amount as taxable income.

  • Total And Permanent Disability 

If you have a total and permanent impairment, you may be able to get your student loans forgiven completely. However, president Joe Biden has announced the cancellation of more than $5 billion in student loan forgiveness for totally and permanently disabled students. 

Borrowers will benefit from the US Department of Education’s streamlining of the procedure, including data matching with the US Department of Defense and the Social Security Administration.

Final Thoughts 

Getting out of student loan debt can be a difficult task. Student loans can only be dismissed in bankruptcy in exceedingly unusual circumstances. Deferment or forbearance for federal student loans are two alternatives that can help relieve a load of student loan debt for those having trouble repaying their debts in the short term. 

Income-driven repayment plans, which connect a borrower’s monthly loan payments to their income and help make monthly installments more reasonable, are another option to examine.

Regardless of the option you choose, seek an expert’s opinion before proceeding. 


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