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An average college graduate has $38,000 in student loans debt. Collectively, more than $1.4 trillion is owed by student loan borrowers in America. It takes the average American 21 years to pay off their student loan debt. Many people can qualify for student loan forgiveness programs, and they could be able to get rid of their debt much faster in 2022.

What is Student Loan Forgiveness?

When your student loan balance is zero, it means that you are free from any remaining debt. The loan provider will not require you to make any further payments.

Most people who are eligible for student loan forgiveness have federal direct loans. However, student loan forgiveness programs may also be available for private loans in 2022.

You may be eligible for student loan forgiveness if you are buried under student loan debt. To find out which option is best for you, check out the full list of student loan repayment options.

Pay as You Earn (PAYE).

PAYE is a federal student loans repayment program that helps student loan borrowers who have difficulty paying their student loan payments. PAYE caps your monthly payments at 10% of your discretionary income.

Any student loan balance remaining after 20 years of consecutive payments is forgiven. You can apply to PAYE at StudentLoans.gov.

Requirements

Your PAYE payments must be lower than the standard 10-year repayment plan in order to be eligible.

You must have taken out loans after October 1, 2007. Also, you must prove that your debt is significantly higher than your income.

Qualify for loans

These loans are eligible for PAYE

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans
  • Subsidized FFEL Stafford loans
  • Unsubsidized FFEL Stafford loans
  • FFEL PLUS Loans
  • FFEL Consolidation loans
  • Federal Perkins loans

REPAYE

President Obama has proposed REPAYE, a modified version of PAYE. This allows student loan borrowers the ability to limit their monthly payments to 10% of their income.

It doesn’t matter when you took out the loan or if your financial situation is severe. StudentLoans.gov allows you to apply for REPAYE.

Requirements

You are eligible for REPAYE if you have federal student loans that qualify. Your loans will be forgiven if you make 20 consecutive payments for undergraduate borrowers. Graduate borrowers are eligible after 25 years.

Qualify for loans

These loans are eligible for REPAYE

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans
  • Subsidized FFEL Stafford loans
  • Unsubsidized FFEL Stafford loans
  • FFEL PLUS Loans
  • FFEL Consolidation loans
  • Federal Perkins loans

Income-based Repayment (IBR).

IBR plans limit your monthly payments to 10 to 15% of your discretionary earnings. You’ll be eligible to get loan forgiveness after 20-25 years of consecutive payments.

IBR will reduce your monthly payments, but it will not stop interest accruing if you have too low payments. Your loan balance may increase if you have a higher income.

Although you can opt-out of this program, you will lose your option to receive student loan forgiveness. You can apply for IBR on StudentLoans.gov.

Requirements

If your IBR payments are lower than they would be under a standard 10-year repayment plan, you may be eligible. You must make consecutive payments of 20-25 years to qualify for IBR student loan forgiveness programs 2022. You will need to inform your student loan servicer if your income or job changes.

Qualify for loans

These loans are eligible for IBR

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans
  • Subsidized FFEL Stafford loans
  • Unsubsidized FFEL Stafford loans
  • FFEL PLUS Loans
  • FFEL Consolidation loans
  • Federal Perkins loans

Income Contingent Repayment (ICR)

ICR plans do not require you to maintain a certain income level. Your monthly payment will instead be 20% of your discretionary income. After 25 consecutive payments, you will be eligible to get student loan forgiveness. You may apply for ICR at StudentLoans.gov.

Requirements

You are eligible for ICR if you have federal student loans that qualify.

Qualify for loans

These loans are eligible for ICR

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans
  • Subsidized FFEL Stafford loans
  • Unsubsidized FFEL Stafford loans
  • FFEL PLUS Loans
  • FFEL Consolidation loans
  • Federal Perkins loans

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF), which offers loan forgiveness to those who work full-time in public service jobs, is available. After 120 consecutive payments, you’ll become eligible.

You will need to fill out the Employment Certificate Form in order to apply for Public Service Loan Forgiveness. This form must be submitted each year, and every time you change jobs.

Requirements

Public Service Loan Forgiveness is only available to those who work at least 30 hours per week in a qualified nonprofit or state agency. You will need to make 120 payments using one of these repayment plans:

  • Standard 10-year repayment plan
  • IBR
  • ICR
  • PAYE
  • REPAYE

Qualify for loans

All federal loans are eligible for PSLF.

Perkins Loan Cancellation

All Perkins loans can be forgiven if you hold a job in the public service. This forgiveness program is not like PSLF. It only covers Perkin’s loans.

It is however a very accommodating program for student loan forgiveness. Even if your public service employment is for a short time, you still get some benefits.

After your first and second years of service, 15% of your loans can be forgiven. You can get an additional 20% forgiveness after years three and four. After five years of service in the public sector, you may have the 30% remaining canceled.

You can contact your university’s financial aid office to inquire about the Perkins Loan Cancellation Program.

Requirements

This program is open to teachers, firefighters, police officers, nurses, librarians, and other professionals. If you are a member of the military, or in another type of public service, you may be eligible.

You must have obtained Perkins loans and worked full-time in public service to be eligible. To receive loan forgiveness, you must have worked in public service for at least five consecutive years.

Also Read:

Difference between Private Student Loans and Federal Student Loans

Which professions are eligible for student loan forgiveness

Forgiveness of Military Loans

You may be eligible to get student loan forgiveness if you serve in the military after your college years. The amount you are eligible for will depend on how long you have served and the rank at which you were.

All branches of the Army, Navy, Air Force offer loan repayment programs to Army doctors, veterans, and armed forces personnel.

Teacher Student Loan Forgiveness Programs

Teachers love Perkins Loan Cancellation and PSLF. Teachers can also get student loan forgiveness through programs like the Teacher Loan Forgiveness in 2022.

Teachers who teach at a qualified school are eligible for partial forgiveness. The amount of loan forgiveness that you get will depend on the grade and subject in which you teach.

You must have a good credit rating on your loans. Loan forgiveness is only available for federal Stafford loans and direct loans. Only loans that were taken out after October 1, 1998, are eligible.

Many states also offer assistance with student loan repayments for teachers. Many states provide assistance for teachers working in areas with a shortage of teachers. Some states also offer support to teachers willing to teach high-demand subjects like science and math.

Students Loan Forgiveness Programs Available for Nurses

Many loan assistance and repayment programs are available to nurses. Many of these programs are easy to access and available to nurses in the United States. Additionally, many states offer assistance with repayments to nurses.

Nurses who work in communities that are underserved can apply for the NURSE Corps Loan Remedies Program. You could get up to 60% off your loans if you are willing to work in the same job for at least 2 years. You’ll get an additional 25% if you stay for the third consecutive year.

You can only submit applications once per year. To ensure that you are accepted, you will need to verify the due date and make sure you submit your application on time.

Repayment of Student Loans for Doctors and Health Care Professionals

The National Health Service Corps offers loan repayment assistance for qualified health care professionals. This program provides $50,000 in loan forgiveness for licensed dentists, doctors, or clinicians who agree that they will work at least two consecutive years in an eligible job.

Doctors in their final year at medical school can apply for the Student to Service program. You will commit to working at least three years in a job that is qualified. You’ll get up to $120,000 in loan forgiveness.

The Indian Health Services Loan Repayment Program provides loan forgiveness of up to $40,000 Doctors agree to serve two years as a member of an American Indian or Alaskan Native community. After two years, doctors can choose to renew their contract or receive loan forgiveness.

You might be interested in the loan repayment program offered by the National Institutes of Health (NIH). This is for those who work primarily as researchers. For doctors and other health care professionals, the military offers loan forgiveness. There are also state programs that can be found throughout the country.

For lawyers, there are options for student loan repayment

Although professional school is expensive, there are many loan repayment options for lawyers. It is possible to locate a state or local assistance program. Some law schools even offer student loan repayment assistance.

For lawyers interested in working at the Department of Justice, the Department of Justice Attorney Loan Repayment Program can be a great option. You can get up to $60,000 loan forgiveness if you have worked there for three years. To qualify, you must have at least $10,000 in federal loan debt. However, this is a very low threshold for most lawyers.

For lawyers working in the public sector, the John R. Justice Student Loan Repayment Program is designed. Public defenders can earn up to $10,000 per year in loan forgiveness for a maximum period of six years.

There are other options for student loan forgiveness

There are many ways to get student loans forgiven if none of these options work. Below are three scenarios where student loan forgiveness may be possible.

  • Unexpected closing of a school: You may be eligible for loan forgiveness if your college unexpectedly closes prior to you completing your degree. If you withdrew from the school within 120 days of its closing, you may also be eligible.
  • Bankruptcy – Student loan forgiveness can be very difficult to obtain in bankruptcy. This route is not recommended for everyone.
  • You are seriously ill or disabled. Loan forgiveness may be available if you become very ill, or have a long-term disability. Even if you get your loans forgiven, they are still tax-deductible.

Many people opt for an income-based repayment plan. You could pay as little as $0 per month and you will be forgiven in 20-25 years.

Resource for Student Loan Forgiveness

The topic of loan forgiveness is complex and there are many things you can do to help. You can still find out more information at the Federal Student Aid and Department of Education websites.

Mohammed Imran

Mohammed Imran

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SLFA is a private company and does not claim to be affiliated with any Federal, State, or Local Government agencies. People with student loan debt have the legal right to use an attorney or process federal student loan documentation on their own behalf without paid assistance. Our mission is to provide people with the credit repair, knowledge, information, and document preparation service they need to deal with all the financial decisions to find what they need and return to life effortlessly.

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