There are many student loan forgiveness programs to offer various forgiveness level and payment time. Here is the list of common student loan debt forgiveness programs.
- Income-driven repayment plans which are under the Ford direct loan program (20 to 25-year forgiveness)
- Loan forgiveness for public service (10-year forgiveness)
- Teacher loan forgiveness and Perkins loan cancellation program (1 to 5-year forgiveness)
- Military college loan repayment program (4 to 6-year forgiveness)
- Total permanent disability discharge (Immediate discharge)
Direct loan forgiveness
It is the most widely opted student loan debt forgiveness program. All direct loans under this program have forgiveness attached at the end of the terms which is usually between 20 to 25 years. At the end of the consolidated loan, the unpaid amount will be forgiven by the Education Department.
The repayment options include standard repayment, Income- contingent; Income-based repayment, REPAYE, and PAYE, Graduated Repayment.
Disability discharge (permanent and total)
A borrower can take the permanent and total disability discharge for their student debt loan forgiveness if they don’t engage in gainful activities because of the mental and physical impairment.
Moreover, they should provide a proof of disability like SSA or SSDI award (having 5 to 7 years of review), VA documentation and doctor certification. The borrower will not be able to take student loans after using this program.
Loan repayment program by Military
The borrower can ask Military for the loan debt forgiveness, if they already have a debt on student loan and wants to join the military for an active job. CLRP provides the benefits in all the branches of military, there is the different requirement for every branch. The forgiven amount differs by branch and it is capable of forgiving around 65000USD.
The borrower needs to pay the accumulated interest. Also, the time for forgiveness is between 4 to 6 years which is based on the individual contract.
If a borrower has a federal loan and belongs to a Corinthian school then he/she can meet the eligibility of loan forgiveness, which is based on the following points.
- Borrower attended the Corinthian school closed on 27th April 2015.
- The borrower also believed that Corinthian school took action and raised fraudulent claims against you.
Also, if borrower is meeting any of the mentioned criteria, then you are eligible for the loan discharge of closed school.
Private student loan debt forgiveness
Borrowers who are seeking for the forgiveness of their private student loan have limited options as compared to federal student loans.
Currently, there is no forgiveness option available for private student loan. But one can go through these steps to try for the forgiveness of the loan.
- The borrower should talk to the lender about the options to lower the monthly payment.
- Private lender frequently helps the customers who struggle with their payments.
- Another option is to refinance their student loans. By doing so, you will be able to lower your interest rate and make the monthly payment much easier.