Situations That Qualify You For Student Loan Forgiveness

Situations That Qualify You For Student Loan Forgiveness

Source - https://alumfinancial.com/situations-that-qualify-you-for-student-loan-forgiveness/

Certain careers at the tertiary level will make you eligible for student loan forgiveness and total discharge. There are different ways to have your student loan forgiven or discharged. The first depends on your career while the second is based on the number of years you make on-time payments when you are enrolled in a repayment plan. Note there is a difference between having a student loan forgiven and a loan being discharged.

Loan forgiveness is given to a person who works at a qualified job for a specific period of time and still has a loan to settle. Loan discharge is a rare occurrence but can be granted to loan defaulters on certain grounds including death, disability, and bankruptcy. To lessen the burden of student loans, Public Service Loan Forgiveness was created.

The program is qualified for by graduates working in the public sector encouraging them to pursue more careers in the public sector. Some of the jobs that qualify loan forgiveness include jobs in government offices, jobs in nongovernmental organizations which are designated tax exemption and peace Corp Volunteers who work in the army. Education, law enforcement and public health are the most common public service careers that can guarantee student loan forgiveness.

However, you should be aware that not all the Student Loan Repayment plans guarantee you loan forgiveness. Some of the repayment plans may qualify you while others may limit you the chances to get your student loan forgiven.

Income-Based Repayment Plan, Pay as You Earn Plan, Revised Pay as You Earn Plan and the Income- Contingent Repayment Plan are the plans which can qualify you to get your student loan forgiven.

Note also that consideration is put on the Standard 10-year repayment plan. If you need Public Service Loan Forgiveness, enroll in a plan that lets you repay your loan for a period of more than 10 years.

Loan discharge is another way of achieving student loan forgiveness. A discharge is normally awarded by a judge under rare circumstances.

Permanent disability, death, false certification of the student eligibility and unauthorized signature of the loan b the school are some of the circumstances that could lead to a loan discharge. Discharge of student loans based on bankruptcy grounds is a rare occasion that can be considered as technically not impossible but very difficult to occur. Research more on student debt relief and the difference between loan forgiveness and discharge before landing on your preferred line of study.

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