Ways To Get Your Student Loans Forgiven 2023
Student loan debt is one of the leading financial burdens of many American graduates. With the average student loan debt of over $30,000, it's no wonder that many students are looking for ways to get their student loans forgiven. In the past, certain loan forgiveness programs have been available to assist graduates in paying off their debt. However, the landscape of student loan forgiveness has changed drastically in recent years, with more options now available for those looking to get their student loans forgiven.
Income-driven Repayment Plans
One of the most common ways to get your student loans forgiven is through an income-driven repayment plan. These plans allow you to make monthly payments based on your income, with the possibility of having your remaining balance forgiven after a certain period of time. The Department of Education offers several different income-driven repayment plans, including Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). Each plan has its own eligibility requirements, so it's important to do your research and see which one is right for you.
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) is a program that allows certain borrowers to have the remainder of their federal student loan debt forgiven after making 120 qualifying payments. To be eligible for PSLF, borrowers must be employed full-time by a qualified public service organization while making their payments. Eligible employers include government organizations, 501(c)(3) nonprofits, and certain other qualifying organizations. Additionally, borrowers must be enrolled in an income-driven repayment plan in order to qualify.
Teacher Loan Forgiveness
Teachers can qualify for loan forgiveness under the Teacher Loan Forgiveness Program. To qualify, teachers must be employed full-time for five consecutive years in a qualifying low-income school or educational service agency. Additionally, borrowers must make 120 qualifying payments while employed in this role in order to have their remaining balance forgiven. The maximum amount of loan forgiveness available through this program is $17,500 for Direct Subsidized and Unsubsidized Loans, and up to $12,500 for Federal Perkins Loans.
Student Loan Repayment Assistance Programs (LRAPs)
Student Loan Repayment Assistance Programs (LRAPs) are available in certain states and cities to help graduates with their student loan debt. These programs typically offer a certain amount of assistance to qualifying borrowers who are employed in eligible fields, such as healthcare and education. The amount of assistance available varies by program, so it's important to do your research and find out which ones are available in your area.
Employer Assistance
Some employers offer student loan repayment assistance as an employee benefit. This could include a lump-sum payment, a fixed amount of assistance each year, or a percentage of the loan balance that is paid each year. It's important to check with your employer to see if they offer any sort of student loan repayment assistance. Additionally, you may be able to deduct up to $2,500 of student loan interest on your taxes each year.
Military Forgiveness Programs
Military members may qualify for student loan forgiveness through a number of programs, including the Department of Defense's Student Loan Repayment Program and the Military College Loan Repayment Program. Additionally, certain National Guard members may be eligible for student loan forgiveness under the National Guard Student Loan Repayment Program. These programs vary in terms of eligibility requirements and amount of assistance available, so it's important to do your research before applying.
Bankruptcy
In some cases, filing for bankruptcy may be an option for those who are struggling to pay off their student loan debt. However, it is important to note that student loan debt is not typically discharged in bankruptcy, so it is important to consult with a bankruptcy attorney before pursuing this route. Additionally, filing for bankruptcy can have a negative impact on your credit score, so it should only be considered as a last resort.
Conclusion
With the rising cost of college tuition and the increasing amount of student loan debt, it's no wonder that many graduates are looking for ways to get their student loans forgiven. Fortunately, there are a number of options available for those looking to get their student loans forgiven. From income-driven repayment plans to employer assistance and military loan forgiveness programs, there are a number of ways to get your student loans forgiven in 2023.