Four more ways to have your student loans forgiven
Story at a glance
- Eligible borrowers can get up to $10,000 of their federal student loans cancelled, or up to $20,000 for those who received federal Pell Grants during college.
- Yet millions, including borrowers who earn more than $125,000, would be left holding substantial balances and seeking other options to also receive loan forgiveness.
- There is the Public Service Loan Forgiveness program, Borrower Defense program and others that also offer certain eligible borrowers loan forgiveness.
Though the Biden administration’s historic student debt forgiveness plan stands to impact upwards of 15 million borrowers, there are still alternative ways borrowers can get their student loans forgiven through targeted programs.
Eligible borrowers can get up to $10,000 of their federal student loans cancelled, or up to $20,000 for those who received federal Pell Grants during college and in total the balances for 20 million borrowers could be completely cleared.
Yet millions, including borrowers who earn more than $125,000, would be left holding substantial balances and seeking other avenues toward further forgiveness.
Prior to the announcement the administration had approved $32 billion in loan relief for around 16 million borrowers, including for students who were victims of for-profit institutions like DeVry University.
America is changing faster than ever! Add Changing America to your Facebook or Twitter feed to stay on top of the news.
Here are four more ways to seek federal loan forgiveness.
Public Service Loan Forgiveness (PSLF) program
The PSLF program is designed to encourage students to enter careers like firefighting, teaching, government, nursing and other public interest fields. Those who chose to pursue any of those careers and work for a U.S. federal, state, local, or tribal government or not-for-profit organizations are eligible to have certain federal student loans forgiven.
However, borrowers must hold their public service jobs for ten years and make 120 payments to have the remainder of their balances forgiven. It includes those serving as full-time AmeriCorps or Peace Corps volunteers.
To qualify for PSLF, you must work full-time, have direct loans with the Education Department, be under an income-driven repayment plan and make 120 qualifying payments. The payments do not need to be consecutive.
More than 175,000 borrowers have collectively received more than $10 billion through the Public Service Loan Forgiveness Program.
As part of Biden’s loan forgiveness announcement, borrowers may receive credit for payments that previously did not qualify for PSLF under a limited waiver program.
Borrower Defense program
Federal borrowers who believe their institution engaged in misconduct or misrepresented the value of their programs are eligible to apply to have their loans cleared through a Borrower Defense discharge.
The Education Department announced earlier in August that it will discharge the remaining loan balances for students who attended the now-defunct ITT Technical Institute from Jan. 1, 2005, through its closure in September 2016.
They found the school lied to students across the country about their ability to transfer credits to other institutions, and falsely guaranteed that students would be able to get jobs upon graduation.
Other institutions the Education Department deemed guilty of defrauding their students include Devry University, Corinthian Colleges, and the Marinello School of Beauty.
The administration so far has discharged $13 billion for around 1 million borrowers whose institutions defrauded them.
Teacher Loan Forgiveness program
Teachers that teach full time for five complete and consecutive academic years in a low-income school or education service agency can be eligible for forgiveness of up to $17,500 on direct subsidized and unsubsidized federal loans.
The loans also must have been made before the end of a teacher’s five academic years of qualifying teaching service.
Total Permanent Disability Discharge
Anyone with a disability recognized by the Social Security Administration (SSA) will have their federal student loans discharged through a data match. Those who have a disability not on file with SSA can still apply for a discharge of their student loans.
This program is designed for those who are unable to work due to a physical or mental impairment, something a physician must sign off on to back up the claim that an impairment is expected to result in death, has lasted continuously for a period of 60 months or greater or is expected to last for a continuous period of 60 months or greater.
Disabilities might also be certified by a licensed physician, or through records from the Department of Veterans Affairs.
The administration has granted $9 billion in total and permanent disability discharges for more than 425,000 borrowers.
Source: TEST FEED1
