Curious about the different programs available? Let’s dive in!
It’s no secret that many college graduates are stepping into the real world with a hefty amount of student debt.
According to the Federal Reserve, back in 2019, most adults with college loans owed somewhere between $20,000 and $24,999.
That’s a lot to carry! But don’t worry—there are options out there to help lighten the load.
Dealing with that kind of debt can feel overwhelming, but the good news is that loan forgiveness is available for federal loans but not for private ones, and it is possible to qualify for that.
Let’s break down the different forgiveness programs out there and how you can apply.
Public Service Loan Forgiveness (PSLF)
PSLF is one of the most best-known federal student loan forgiveness programs.
To qualify, you need to work full-time for a qualifying employer, which can include:
- Government organizations at any level, including military service
- Tax-exempt 501(c)(3) nonprofits
- Other nonprofits that provide public services, like emergency management, law enforcement, or public health
- To have your remaining loan balance forgiven, you’ll need to:
Teacher Loan Forgiveness (TLF)
If you’re a teacher with student loans, the Teacher Loan Forgiveness Program could help by offering up to $17,500 in debt relief. To qualify, you must:
- Teach full-time for five consecutive years at a low-income school or educational agency;
- Have a bachelor’s degree and state certification as a teacher;
- Be directly involved in classroom teaching.
- Tutors or instructors without state certification aren’t eligible for this program.
Nursing Loan Forgiveness
Nurses can also take advantage of forgiveness programs like the Nurse Corps Loan Repayment Program, which covers up to 85% of nursing school debt.
To qualify, you need to be a licensed RN, advanced practice registered nurse, or nurse faculty member working in a facility with a critical shortage of nurses for at least two years.
Loan Forgiveness for Medical Professionals
Medical school debt can be overwhelming, but there are programs designed to help, such as:
- National Health Service Corps Loan Repayment Program
- Indian Health Service Loan Repayment Program
- State Student Loan Forgiveness Programs
- NHSC Rural Community Loan Repayment Program
- NHSC Students-to-Service Loan Repayment Program
By working in underserved areas or health professional shortage areas, you could have up to $50,000 of your medical school debt forgiven while making a difference in those communities.
Perkins Loan Cancellation
Although the Perkins Loan Program ended in 2017, borrowers can still have these loans canceled by working in certain public service fields like education, law enforcement, nursing, medical technology, or the military.
The debt is forgiven gradually over five years, not all at once.
These forgiveness programs can significantly reduce or even eliminate your student debt, especially if you’re working in public service or healthcare.
Military Loan Forgiveness
If you’re serving in the military, you’ve got some great options for loan forgiveness, including the Public Service Loan Forgiveness (PSLF) program.
But that’s not all! Here are a few other ways you might find relief from your student loans:
- You could get a reduction in your student loan interest rates through the Servicemembers Civil Relief Act (SCRA).
- While you’re on active duty, you may qualify for loan deferment, forbearance, or even have your interest suspended or canceled.
- Each branch of the military also offers specific assistance and forgiveness programs tailored to their members.
- Just keep in mind that the options available to you can vary based on your status, circumstances, and which branch you’re in. Plus, some of these benefits might even apply retroactively!
What to Do If You Don’t Qualify for Loan Forgiveness
So, you’ve looked into loan forgiveness programs but found out you don’t qualify. You still have some options, and here are a few tips you might find helpful:
Consider Refinancing Your Loan
If you have good credit or someone in your family who can co-sign a loan, refinancing could be a game changer.
Make Payments More Often
If it works for your finances, think about paying your loan every other week instead of once a month.
This way, you’ll end up making 13 payments in a year instead of just 12, which can help you knock down that debt faster.
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