The Different Student Loan Forgiveness Options

A student loan benefits a lot of students who are financially incapable of shouldering their expenses when they go to college. After you graduate from college, you have six months leeway before you are obliged to start repaying your debt. Paying a student loan may become a burden especially for those people who have low income. Raising a family and supporting everyday living with a not-so-good income is indeed hard if you have a debt that you need to pay off. And so, student loan forgiveness options were established to help out borrowers.

PUBLIC SERVICE LOAN FORGIVENESS

This forgiveness option is open to those who are working in public service. An applicant should be a full-time employee and has made prompt payments towards the student loan for ten years.

INCOME-BASED REPAYMENT

If you were qualified for income-based repayment, you could have the chance of having the remaining balance of your student debt forgiven after making updated payments for up to 25 years.

PAY AS YOU EARN

This option is the same with income-based repayment. Your total balance after 20 years of continuous payments will be forgiven.

TEACHER CANCELLATION FOR FEDERAL PERKINS LOAN

Teachers who have Federal Perkins Student Loan may be granted 100% loan cancellation provided that they are working in a public school with low income or if they specialize in certain academic subjects.

TEACHER LOAN FORGIVENESS

Teachers are considered as one of the assets of every nation because of their vital role in pursuing education, and so, this type of forgiveness option was formed to reach out especially those who have low income.

SPECIAL TEACHER FORGIVENESS PROGRAMS

Aside from the teacher loan forgiveness, some states like New York came up with special teacher forgiveness programs that will help them scratch out a portion of their debt.

SPECIAL DOCTOR FORGIVENESS PROGRAMS

As part of the public health, doctors are also given the chance by some states to have their loan forgiven under certain circumstances.

SPECIAL LAWYER FORGIVENESS PROGRAMS

Just like teachers and doctors, there are also special forgiveness programs for lawyers. Attorneys have spent a lot of money just to finish their college education, but there is a huge percentage of unemployment among lawyers. And so, some states like Florida are granting loan forgiveness. This forgiveness option’s main focus are the lawyers who fall under the low-income bracket.

All the options and programs that were mentioned above have certain eligibility requirements. Borrowers may be qualified under special circumstances. Most of the options are also focused on taking the burden off the people who have low salaries.