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.
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).