What is student loan forgiveness and how can I apply for the federal student loan forgiveness? Back in the olden days, students actually try to layout the way life will be after high school. Most people seem to believe that acquiring loans can be the only solution to pay for college. Apparently, after being a college graduate you tend to look at the amount of debt on your hand. Then you find out that you made the wrong choice of requiring loans or student loans.
Apparently, the government seems to have taken into consideration by introducing student loan forgiveness programs. Probably due to the fact that the government understands the stress behind not able to pay for college fees. As well as other struggles in paying back those loans. You can learn more about the various type of loan forgiveness and see if you’re qualified for the student loan forgiveness.
What does Student Loan Forgiveness Mean?
On the contrary, student loan forgiveness is a program set by the government as an aid to help eligible students with their student loan debt. This is more like forgiving you for the loan you acquire where you no longer need to pay for your loans. There are different terms in understanding loan forgiveness which include Forgiveness, Cancellation, and Discharge. Both terms seem to have a similar meaning but they’re different in many ways.
When, you don’t need to make a payment on the loans you collected due to your job, this can be referred to as forgiveness or cancellation. But when you don’t need to make a payment due to some circumstances. That includes the coronavirus, closure of the school, or permanent disability, this is considered as discharge. Therefore, the student loan forgiveness coronavirus can be labeled a discharge. But if the situation exceeds the qualification to have your loans forgiven, discharged or canceled, you need to know that you still need to repay your loan.
Type of Loan Forgiveness
The requirements for the various different student loan forgiveness, cancellation, and discharge actually depend on the type of student loan forgiveness. However, here are some of the most common type of forgiveness, cancellation, and discharge loan.
Public Service Loan Forgiveness
The Public Service Loan Forgiveness is actually accessible for direct loans and it’s eligible for people that are employed by the government or not-for-profit organization. This enables you to receive loan forgiveness which is also based on the PSLF program. PSLF doesn’t reduce the rest balance in your Direct loan after you must have gone through the 120 qualifications of the monthly payment.
Teacher Loan Forgiveness
On the contrary, Teacher Loan Forgiveness is accessible for direct loans and also FFEL program loans. This is applied to teachers that work as a full-time in five complete and consecutive academic year in school such an elementary school, secondary school, or educational services that offers low-income. This qualifies you to forgiveness of up to $17, 500 that comes from your Direct Loan or FFEL Program loans.
Closed School Discharge
This is available for direct loans, Perkins loans, and also FFEL program loans. In case your school closes for an unexcepted reason like the COVID-19 which leads to the closure of schools. This enables you for the loan discharge of your federal student loans.
Eligibility for Loan Forgiveness and How to Apply
First of all, the eligibility to apply for Public Service Loan Forgiveness, Teacher Loan Forgiveness, Closed School Discharge, and others actually vary. With the provided link https://studentaid.gov/manage-loans/forgiveness-cancellation. You can learn more about the eligibility requirement for each type of Student Loan Forgiveness and how you can apply. In summary, other types of loan forgiveness include Perkins Loan Cancellation and Discharge. Plus, Total and Permanent Disability Discharge, Discharge Due to Death, Discharge in Bankruptcy, and more.