Seven Ways To Write Off Your Student Loan Debt

If you are overwhelmed with student loan payments, let's try to console you. By the end of 2016, Americans owed more than $ 1,4 trillion in student loans, according to the Federal Reserve. You can reduce the burden of your student loan if you refinance it or qualify for a repayment plan. For example, there is an income based repayment method in which you pay more as your earnings increase. If you are eligible for the Student Loan Forgiveness program, you can repay some, and sometimes all, of your student loan debt. Read more about how to repay a loan, said the publication Go Banking Rates.

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Never pay money to apply for a federal loan forgiveness. Some scammers lure victims with titles such as Obama Student Loan Forgiveness, but there is no such program. So before deciding how you will pay off your student loans, do a study of legitimate forgiveness programs for those loans.

Types of student loan forgiveness

Student Loan Forgiveness Programs are available for those who graduate with student loan debt and qualify. The federal and state governments offer programs that may, among other things, require you to work in a specific industry (such as teaching, medicine, or law) and other public service jobs.

Some programs only apply to certain types of student loans, so make sure your program meets the requirements. There are seven of the most popular types of student loan forgiveness.

1. Government Employee Loan Forgiveness Program (PSLP)

If you are employed in a government service, you may be eligible to participate in the PSLP. Thanks to it, all your loans will be forgiven after you pay your monthly installments for 10 years. You can most likely qualify for this if you work full time for a government organization or some nonprofit organization.

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To ensure that your job meets the requirements, please submit a Certificate of Employment Form every year or whenever you change jobs. When you make your 120th loan installment, apply for forgiveness.

2. Perkins Loan Forgiveness

If you are a teacher, nurse, firefighter, police officer, or in the military or other public service, the federal government may forgive your entire Perkins loan balance. Two years of service entitles you to 15% forgiveness, three and four years entitle you to 20%, and five years entitles you to 30%. Additionally, your Perkins loan payments are automatically deferred while you work in your qualifying role.

3. Stafford Loan Forgiveness Program

Direct and Federal Stafford loans may be eligible for student loan forgiveness if you meet the “high quality teacher” standards and have been teaching at the qualifying elementary or high school for five consecutive years. These five years cannot include the years during which you received benefits through AmeriCorps.

If you are a high school math or science teacher or a special education teacher, you may qualify for federal student loan forgiveness of up to $ 17. If you teach a different subject at a qualifying school, the forgiveness is limited to $ 500.

4. Forgiving Nursing Student Loan

The U.S. Department of Health and Human Services offers a nurse student loan repayment program. If you worked at an underserved area institution for two years, 60% of the loan balance will be eligible for forgiveness, followed by another 25% after three years.

5. Student loan forgiveness for lawyers

There is no special federal student debt relief program for lawyers. However, several states offer programs for lawyers serving low-income populations.

For example, the District of Columbia Bar Foundation offers up to $ 12 a year to lawyers serving low-income communities.

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The Florida Bar Foundation provides $ 5000 in benefits a year in a loan that it forgives those who work full-time or part-time for 12 months serving low-income communities.

The John R. Justice Student Loan Repayment Program provides public defenders and state attorneys with up to $10 per year for a minimum of three years of service.

6. Forgiving student loan for doctors

Some states offer special programs for doctors in underserved or low-income communities. For example, New York gives doctors up to $ 120 over three years of work. The Washington State Medical Worker Loan Repayment Program guarantees physicians up to $ 000 for two years and up to $ 70 for three years of full-time employment.

7. Loan forgiveness due to death or disability

If you suddenly become disabled, you will be eligible for forgiveness of your direct loans, federal education loans, and Perkins loans. But to be considered completely disabled, the doctor must certify that you are unable to engage in any materially income-generating activity due to a physical or mental disorder that could hasten your death, last at least 60 months, or may last at least 60 months.

If the student's parent takes out a loan, they will be forgiven in the event of the student's death.

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