More than 10 Student Loan Forgiveness Programs That Discharge Loans

Student loan forgiveness may appear to be too good to be true, but it is possible to obtain it legally through free government programmes. Only borrowers with federal student loans have access to the following options.

1. Income-driven repayment forgiveness

Income-driven repayment options limit your loan payments to a percentage of your monthly income. These plans are especially advantageous for people who have big debt loads in comparison to their income. However, the majority of borrowers will not be eligible for forgiveness until the early 2030s.

2. Public Service Loan Forgiveness

Government and nonprofit individuals with federal student loans can apply for Public Service Loan Forgiveness. Following 120 qualified loan payments, eligible borrowers can have their outstanding loan amount forgiven tax-free.

3. Teacher Loan Forgiveness

Teachers who work full-time in low-income public elementary or secondary schools for five years may be eligible for Teacher Loan Forgiveness. Teachers must have taken out loans after October 1, 1998, to be eligible.

4. Student loan forgiveness for nurses

Nurses with student debt have various loan forgiveness alternatives, including Public Service Loan Forgiveness, Perkins loan cancellation, and the NURSE Corps Loan Repayment Program, which pays up to 85 percent of qualified nurses' unpaid college debt.

5. State-sponsored repayment assistance programs

Certain states may allow licenced teachers, nurses, doctors, and lawyers to participate in debt repayment schemes.

6. Military student loan forgiveness and assistance

Military personnel in the Army, Navy, Air Force, National Guard, and Coast Guard may be eligible for loan forgiveness schemes of their own.

7. Additional student loan repayment assistance programs (LRAPs)

The National Institutions of Health provides up to $35,000 in debt help to health professionals who are appointed to undertake research by the institutes. A list of state LRAPs for lawyers is available from the American Bar Association.

8. Perkins loan cancellation

Borrowers receiving federal Perkins loans can have up to 100% of their loans forgiven if they work in public service for five years. Approved borrowers will often see a percentage of their loans forgiven incrementally for each year worked.

9. Borrower defense to repayment discharge.

Borrowers who have been cheated by their colleges may be eligible for debt relief. You must file a borrower defence to repayment claim with the United States Department of Education.

10. Total and permanent disability discharge.

If you are unable to work due to total and permanent disability, either physically or mentally, you may be eligible to have your remaining student loan debt forgiven.