Explore Student Loan Forgiveness Options & Find Your Best Fit

In the growing Global World where the economy plays such a vital role in every sector, finding the right student loan forgiveness plan can seem a daunting task. We all reach a stage in our Education Journey, where if you don't manage your money well, it slips away on not-so-necessary things, and pursuing higher education often comes with a steep cost.

Student loans can feel like a heavy weight on your shoulders. Shockingly, U.S. student loan debt hit a staggering $1.56 trillion in 2020, according to the Federal Reserve. With such a burden, it’s no wonder students want to ease the load. Thankfully, there are various student loan forgiveness options designed to offer some relief. In this guide, we will walk you through the different paths to forgiveness, helping you find the best fit for your situation. So, go on, get your Education because it is one thing you should never compromise on. Let's start with the basics!

What is Student Loan Forgiveness?

Student loan forgiveness can relieve you of repaying part or all of your federal student loans. However, it's not for everyone—only certain loans and borrowers in public service, education, military roles, or those on income-driven repayment (IDR) plans may qualify. Keep in mind, that this mainly applies to federal loans, not private ones. If your loans are eligible, you can apply and continue making payments until you meet the requirements. Now, let's understand the types of Loan Forgiveness.

Types of Student Loan Forgiveness

Only federal direct loans, like those from the William D. Ford Federal Direct Loan Program, are eligible for forgiveness. If you have FFEL or Perkins Loans, you can consolidate them into a direct consolidation loan to qualify for Public Service Loan Forgiveness (PSLF). Your federal loan servicer handles the repayment process, so you'll work with them to enrol in or change your repayment plan. This is usually a straightforward process that you can manage online.

For those working in federal agencies, your employer might even chip in to repay a portion of your loans—up to $10,000 per year, with a cap of $60,000—through the federal student loan repayment program. As recent events like the collapse of for-profit colleges and the 2020 pandemic have intensified the conversation around student debt, there's growing debate about whether forgiveness should be extended to all borrowers, not just those in specific sectors or repayment plans. Let us hope that, eventually, all borrowers can get the benefit, right?

Here are a few programs for Student Loan Forgiveness:

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program is a federal initiative aimed at forgiving the remaining balance on student loans for those working in qualifying public service roles. To benefit from PSLF, you must make 120 qualifying monthly payments while working full-time for a government agency or a nonprofit organization.

Who is best suited for this Program?