STUDENT LOAN FORGIVENESS
Loan forgiveness is possible!
- Income-Driven Repayment Plans: 20-25 year forgiveness.
- Teacher Loan Forgiveness and Perkins Loan Cancellation Programs: 1-5 year forgiveness.
- Public Service Loan Forgiveness: 10-year forgiveness.
- Total Permanent Disability Discharge: Immediate discharge.
- Military College Loan Repayment Program (CLRP): 4-6 year forgiveness.
Find out if you qualify: (877) 554-6846
There are many loan forgiveness programs.
Unified Document Services can you find which program best suits your needs!
Below is are charts provided by the U.S. Department of Education of the different options available.
|Discharge Condition||Amount Discharged||Notes|
|Borrower's total and permanent disability or death||100 percent||If you are a parent PLUS loanborrower, then the loan may be discharged if you die, or if the student on whose behalf you obtained the loan dies.|
|Bankruptcy (in rare cases)||100 percent||Cancellation is possible only if the bankruptcy court rules that repayment poses an undue hardship to the borrower.|
|Closed school (for borrowers who could not complete their program because the school closed while they were enrolled or borrowers who withdrew not more than 120 days before the school closed)||100 percent||For loans received on or after Jan. 1, 1986.|
|False loan certification (school falsely certified a borrower's eligibility to receive a loan)||100 percent||For loans received on or after Jan. 1, 1986.|
|False certification by reason of identity theft (loan was made as a result of the crime of identity theft, as determined by a court)||100 percent||Effective July 1, 2006.|
|School does not make required return of loan funds to the lender||Up to the amount that the school was required to return.||For loans received on or after Jan. 1, 1986.|
|Full-time teacher for five consecutive years in a designated elementary or secondary school or educational service agencyserving students from low-income families. Must meet additional eligibility requirements.||Up to $5,000 (up to $17,500 for elementary/secondary special education teachers and secondary math and science teachers) of the total loan amount outstanding after completion of the fifth year of teaching.
Under the Direct and FFEL Consolidation Loan programs, only the portion of the consolidation loan used to repay eligible Direct Loans or FFEL Program loans qualifies for loan forgiveness.
|Loan forgiveness for public service employees
(Direct Loan Program only)
|100 percent of the remaining outstanding balance on an eligible Direct Loan.||For a borrower who is not in defaultand who makes 120 monthly payments on the loan after Oct. 1, 2007, under certain repayment plans, while the borrower is employed full-time in a public service job.
You may not apply for forgiveness until after you have made all of the required 120 qualifying monthly payments.
LOWER YOUR MONTHLY PAYMENTS
Student Loan Repayment Assistance
Loan forgiveness is often the goal for student loan borrowers and while many may qualify immediately, others may have to wait a certain time frame. If you are struggling to make your student loan payments, you may be eligible to significantly lower your payments while working toward future student loan forgiveness.
Income-Driven Repayment Plans (such as IBR, PAYE, and REPAYE), for instance, can cap your monthly loan payments at 10-15% of your discretionary income before meeting the time frame for loan forgiveness qualification.
There are many loan repayment programs. Below is a chart provided by the U.S. Department of Education covering the different options available.
Repay Your Direct Loans and Federal Family Education Loan (FFEL) Program Loans
|Overview of Direct Loan and FFEL Program Repayment Plans|
|Repayment Plan||Eligible Loans||Monthly Payment and Time Frame||Eligibility and Other Information|
|Standard Repayment Plan||
||Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).||All borrowers are eligible for this plan.
You’ll usually pay less over time than under other plans.
Standard Repayment Plan with a 10-year repayment period is not a good option for those seeking Public Service Loan Forgiveness (PSLF).
Standard Repayment Plan for Consolidation Loans is not a qualifying repayment plan for PSLF.
|Graduated Repayment Plan||
||Payments are lower at first and then increase, usually every two years, and are for an amount that will ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).||All borrowers are eligible for this plan.
You’ll pay more over time than under the 10-year Standard Plan.
Generally not a qualifying repayment plan for PSLF.
|Extended Repayment Plan||
||Payments may be fixed or graduated, and will ensure that your loans are paid off within 25 years.||
|Revised Pay As You Earn Repayment Plan (REPAYE)||
|Pay As You Earn Repayment Plan (PAYE)||
|Income-Based Repayment Plan (IBR)||
|Income-Contingent Repayment Plan (ICR)||
|Income-Sensitive Repayment Plan||
||Your monthly payment is based on annual income, but your loan will be paid in full within 15 years.||