6 Student Debt Forgiveness Programs: Are You Eligible?

The United States is going through a student debt crisis. Current outstanding student loan debt has reached $1.76 trillion, and an average student graduates with $38,000 in debt.

6 Student Debt Forgiveness Programs

1. Public Service Loan Forgiveness (PSLF)

The U.S. government is ready to reward those who work in the public sector – this is what this program is for. It motivates those with student debt to spend ten years working for the government at any level or for a non-profit.

2. Teacher Loan Forgiveness

Low-income schools constantly lack teaching staff. To encourage new teachers to work in such schools, the Fed has implemented this program for teachers who move to low-income neighborhoods.

3. Perkins Loan Cancellation

If you took out a Perkins Loan from the Fed to finance your studies, there are multiple ways you can have a part of it canceled. In most cases, you can have up to 100% of your student debt forgiven over five years at the following rate: – 15% of the loan in the first and second year; – 20% in the third and fourth year; – 30% in the fifth year.

4. NHSC Student To Service Loan Repayment

If you’re a medical, nursing, or dental student, the chances are that your financial situation is even direr than that of most other students. After all, this type of education is one of the most expensive.

5. Revised PAYE (REPAYE)

If your current payment plan is too hard on you, or you’re not sure you’ll pay everything off in 20-25 years, this program might be a good option. First, it recalculates your payments to be ten percent of your discretionary income. Then, the rest of the loan will be canceled after 20 years (for undergraduate studies) or 25 years (for graduate studies).

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