Navigate the complexities of federal student loan forgiveness and get relief from student debt. Explore your options now.
More than 40 million Americans collectively owe more than $1.7 trillion in student loan debt. And while plenty of federal student loan borrowers have been enjoying the student loan payment pause that’s been in effect since 2020, payments will resume again in October.
That said, forgiveness plans can be complicated to take advantage of, Lux adds. “One of the big challenges is just navigating it. There are a lot of different forgiveness programs,” he says. There are a number of ways that borrowers can qualify for student loan forgiveness. Most commonly, individuals will be eligible for student loan forgiveness because of their profession — but you can also apply if you have a disability, your school has closed or misled you or you are a member of the military.
Income-driven repayment programs are another common way borrowers have their debt forgiven. Using these programs, borrowers pay down their balance over a number of years by making payments commensurate with their income. After that time is up, some or all of their balance may be forgiven.Any borrower with eligible federal student loans can apply for the SAVE or ICR plans.
The Institute of Student Loan Advisors, a non-profit organization offering free student loan advice to borrowers, provides a comprehensive list of student loan forgiveness programs for borrowers. The Department of Education’s website also provides a comprehensive guide for loan forgiveness. How can I have my student loans forgiven? There are a number of ways borrowers can have their student loan debt forgiven.
What are the benefits and drawbacks of student loan forgiveness? Student loan forgiveness programs could help borrowers free up money to spend elsewhere. When considering forgiveness, be wary of scammers, who may try to trick you into paying money to have your loans forgiven. There’s never a fee to qualify for any federal student loan forgiveness program, Mayotte says.The American Rescue Plan Act of 2021 changed how student loan forgiveness is treated for discharges “The American Rescue Plan Act of 2021 modified the treatment of student loan forgiveness for discharges in 2021 through 2025.
Employers can also provide options to help borrowers repay their loans. Some employers offer benefits like student loan repayment plans or tuition reimbursement. Companies may also provide access to a financial adviser who can advise on repayment options.
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