Today, on November 18, 2024, student loan forgiveness programs are a lifeline for many Americans burdened with educational debt.
These programs, offered by the U.S. Department of Education and various other institutions, aim to reduce or eliminate student loans based on specific criteria such as profession, income, or loan type.
Types of Student Loan Forgiveness Programs
What Are Student Loan Forgiveness Programs?
Student loan forgiveness programs are initiatives that forgive or discharge a borrower’s remaining loan balance after meeting specific requirements. Here is a detailed list of the most prominent programs available in the U.S.:
Public Service Loan Forgiveness (PSLF)
PSLF is one of the most well-known student loan forgiveness programs. It benefits borrowers working full-time in government or eligible non-profit organizations. After making 120 qualifying payments under a qualifying repayment plan, the remaining balance is forgiven. Explore more here.
Teacher Loan Forgiveness
This program offers up to $17,500 in loan forgiveness for teachers who work full-time in low-income schools for at least five consecutive years. It is specifically for Direct and FFEL Loans.Read more here.
Income-Driven Repayment (IDR) Forgiveness
Borrowers on an Income-Driven Repayment plan may qualify for loan forgiveness after making payments for 20-25 years, depending on the plan. This includes PAYE, REPAYE, and IBR plans. Discover more about IDR plans.
Closed School Discharge
If your school closed while you were enrolled or shortly after you withdrew, you could qualify for this program. This has helped many affected by closures like ITT Tech. Learn more here.
Borrower Defense to Repayment
Borrowers whose schools misled them or engaged in misconduct can apply for loan discharge through this program. It has grown in importance as for-profit colleges face scrutiny. Read more here.
Military Student Loan Forgiveness Programs
Service members and veterans may qualify for specific forgiveness programs, like the Army Student Loan Repayment Program, which forgives up to $65,000 in loans. Details here.
State-Based Forgiveness Programs
Many states offer student loan forgiveness programs for professionals in underserved areas, such as healthcare workers and teachers. For example, California offers the APLE program for teachers.
Recent Updates on Student Loan Forgiveness Programs
The Biden administration has made temporary adjustments to the PSLF program and introduced the SAVE plan, replacing REPAYE, to enhance accessibility for borrowers. These changes aim to lower monthly payments and improve long-term loan forgiveness prospects.
Who Can Benefit From Student Loan Forgiveness Programs?
These programs are designed for various borrowers:
Public servants, teachers, and healthcare professionals.
Borrowers on income-driven repayment plans.
Veterans and service members.
Borrowers must meet eligibility requirements and complete applications to benefit from these programs. For more financial planning ideas, visit this article.