Douglas Olsen
There are several ways to get help with student loan payments or even have them forgiven. Firstly, those with a total and permanent disability (TPD) may qualify for a discharge, as can those who work in the public sector, are teachers at low-income schools, or have served as firefighters, nurses, or military personnel. Additionally, if you're struggling to make payments, you can contact your servicer to ask about options, and reliable lenders will want to work with you. Credit counseling nonprofits can also help you make a plan to get out of debt. Lastly, federal student loans may qualify for bankruptcy discharge, but this is an expensive process that requires legal assistance.
Ways to get out of paying student loans
| Characteristics | Values |
|---|---|
| Loan forgiveness | Public Service Loan Forgiveness (PSLF) program, Teacher Loan Forgiveness Program, Teacher Cancellation program, Federal Student Aid |
| Loan discharge | Total and permanent disability (TPD), bankruptcy, school closure, borrower defense |
| Consolidation | May be an option to get out of default |
| Rehabilitation | May be an option to get out of default |
| Repayment plans | Income-driven repayment (IDR) plans, based on income and family size |
| Free advice | Credit counselling nonprofits, Federal Student Aid |
Explore related products
What You'll Learn
Loan forgiveness for public sector workers
If you work in the public sector, there are several loan forgiveness programs that you may qualify for. Here is some information on a few of them:
Public Service Loan Forgiveness (PSLF)
The PSLF program is a federal program that can forgive your student loan balance after you make 10 years' worth of monthly payments (120 payments) while working full-time for a qualifying employer. Qualifying employers include government organizations at any level, nonprofit organizations, and religious organizations. To benefit from PSLF, you need to repay your federal student loans under an Income-Driven Repayment (IDR) plan or a standard 10-year plan. The IDR plan bases your monthly payment on your income and family size, and any forgiveness you receive won't be taxed.
Perkins Loan Cancellation
Perkins Loan Cancellation offers forgiveness after at least four to seven years of public service, depending on your job type. To qualify, you must work full-time for a qualifying employer, which can include government organizations, nonprofit organizations, AmeriCorps, or the Peace Corps.
Teacher Loan Forgiveness
Teachers may qualify for loan forgiveness through the Teacher Education Assistance for College and Higher Education (TEACH) Grant program. To qualify, you must teach full-time for five complete and consecutive academic years in certain elementary or secondary schools or educational service agencies that serve low-income students.
Total and Permanent Disability (TPD) Discharge
If you have a disability that severely limits your ability to work, you may qualify for a TPD discharge, which would result in the full discharge of your federal student loans. To qualify, you will need to provide specific kinds of proof of your disability and may be subject to a post-discharge monitoring period.
It's important to note that these are just a few examples of loan forgiveness programs for public sector workers. There may be other programs or options available to help you repay your student loans. You can visit the Federal Student Aid website or use resources like the PSLF Help Tool to explore your options and determine your eligibility for loan forgiveness programs.
Child Support Obligations for Full-Time Students: Who Pays?
You may want to see also
Explore related products
Loan forgiveness for teachers
There are several loan forgiveness programs available for teachers working in the United States. These programs can help teachers get rid of their student loan debt by forgiving a portion or the entirety of their federal student loans. Here are some of the popular loan forgiveness programs for teachers:
Public Service Loan Forgiveness (PSLF)
PSLF forgives the remaining balance on Direct Loans after 120 qualifying payments, which is typically equivalent to 10 years of payments. To be eligible for PSLF, teachers must work for a qualifying employer, which includes government organizations at any level (federal, state, local, or tribal) and specific types of nonprofit organizations. It's important to note that PSLF does not require teachers to work at a low-income public school.
Teacher Loan Forgiveness (TLF)
TLF offers up to $17,500 in loan forgiveness for teachers who have worked full-time for five complete and consecutive academic years at a qualifying school. At least one of those years must have been after the 1997-98 academic year, and the teacher must have been a new borrower on or after October 1, 1998. Certain highly qualified special education teachers, as well as secondary mathematics or science teachers, can qualify for the full $17,500 forgiveness amount. Other eligible teachers can receive up to $5,000 in loan forgiveness.
Perkins Loan Cancellation for Teachers
The Perkins Loan Cancellation program forgives up to 100% of Federal Perkins Loans for teachers who work full-time at a low-income school or teach certain subjects. Unlike other forgiveness programs, Perkins Loan Cancellation forgives portions of loans in yearly increments. For example, 15% of the loan may be canceled for each of the first and second years of service, including the interest accrued during those years. To apply for this program, teachers should contact the holder of their Perkins Loan to discuss the next steps.
State-Specific Loan Forgiveness Programs
In addition to federal loan forgiveness programs, many states offer their own loan forgiveness initiatives, especially for teachers working in high-need areas. Teachers can contact their state's education agency to learn more about specific programs and eligibility requirements.
It's important to carefully review the requirements and conditions of each loan forgiveness program before making a decision. Additionally, teachers should regularly check for updates and changes to these programs, as eligibility criteria and benefits may evolve over time.
How to Strategically Pay Off Student Loans
You may want to see also
Explore related products
Loan forgiveness for those with a disability
One way to get out of paying your student loans is to apply for loan forgiveness. Loan forgiveness is available for those with a disability, officially known as Total and Permanent Disability (TPD) discharge. To qualify for TPD discharge, you must have a disability that significantly impacts your ability to work, both presently and in the future. This disability can be either physical or mental.
If your application for TPD discharge is successful, you are no longer required to repay your federal student loans or complete any grant service obligations. Some individuals may be automatically discharged if deemed eligible by the Social Security Administration or Veterans Affairs. However, in most cases, specific proof of disability is required, and a post-discharge monitoring period may be implemented, during which the discharged loans could be reinstated.
You can learn more about qualifying and applying for TPD discharge online. Additionally, the U.S. Department of Education and Department of Defense offer special benefits for military service members with federal student loans. It is worth exploring the various options available to you and understanding the specific requirements and processes for applying for loan forgiveness on the basis of disability.
Another option to consider is Public Service Loan Forgiveness (PSLF). PSLF is available to those who work full-time for a government or not-for-profit organization. If you qualify, you may be eligible for forgiveness of the entire remaining balance of your Direct Loans. To benefit from PSLF, you typically need to repay your federal student loans under an Income-Driven Repayment (IDR) plan or a standard 10-year plan. An IDR plan bases your monthly payment on your income and family size, and after making a certain number of payments over 20 or 25 years, your loan balance may be forgiven.
How to Help Your Child Repay Student Loans
You may want to see also
Explore related products
Loan forgiveness for military service members
Military service members and veterans in the U.S. are eligible for educational benefits, including student loan forgiveness. While not everyone will qualify for loan forgiveness, there are several programs and benefits that military service members and veterans can use to manage their debt.
Public Service Loan Forgiveness (PSLF)
If you plan to work in the military or another area of public service for 10 years, you may qualify for loan forgiveness through the PSLF program. PSLF forgives the remaining balance of your loans after you work for a qualifying non-profit or government organization.
Total and Permanent Disability Discharge (TPD)
If you are a U.S. military veteran with a disability that severely limits your ability to work, you may qualify for a TPD discharge. TPD discharge applies to those with physical or mental disabilities and means that you do not have to repay your federal student loans.
National Defense Student Loan Discharge
Service members who served in a location that qualified for hostile-fire or imminent-danger pay may be eligible for the National Defense Student Loan Discharge. Only borrowers with Perkins loans are eligible for this program. Those whose military service ended before August 14, 2008, can have up to 50% of their loans forgiven, while those who served after that date can have 100% of their loans forgiven.
Servicemembers Civil Relief Act (SCRA)
Under the SCRA, active-duty military service members can have their student loan interest rates capped at 6%. This benefit applies to both federal and private student loans. If you served for 12 months or more in a hostile area, you may qualify for a 0% interest rate on your federal loans for up to 5 years.
HEROES Act Waiver
The HEROES Act prevents service members from incurring additional student debt while deployed. It also has several implications for service members and veterans who are in school or repaying student loans.
Student Loan Refunds: Do I Need to Repay?
You may want to see also
Explore related products
$6.99
Loan forgiveness for those who work for non-profit organisations
If you work for a non-profit organisation, you may be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. This program was created under the College Cost Reduction and Access Act of 2007 and allows borrowers who work full-time for nonprofits and government agencies to have their outstanding debt forgiven tax-free on Federal Direct Loans. To qualify, you must make 120 qualifying monthly payments under a qualifying repayment plan (this usually takes 10 years) and work a minimum of 30 hours per week. Your employer must be a designated 501(c)(3) nonprofit organisation or government entity (federal, state, local, or tribal).
It is important to note that not all nonprofit employees are eligible for PSLF. The program excludes organisations that "engage in activities that have a substantial illegal purpose," as outlined by the Trump administration in 2025. These include organisations that advance illegal immigration, support terrorism, child abuse, illegal discrimination, or disorderly conduct.
To benefit from PSLF, you can use the PSLF Help Tool to fill out your Employment Certification for Public Service Loan Forgiveness form. This form should be submitted periodically during your employment and digitally signed and certified by your employer.
In addition to PSLF, there are other options for loan forgiveness or repayment assistance. For example, employers can offer a pre-tax paycheck withholding of up to $5,250 per year toward a student loan. You may also qualify for an IDR plan, which bases your monthly payment on your income and family size. If you work full-time for a government or not-for-profit organisation, you may be eligible for forgiveness of the entire remaining balance of your Direct Loans under an IDR plan.
Student Loan Forgiveness: Army's Financial Aid for Education
You may want to see also
Frequently asked questions
You may be eligible for student loan forgiveness through the Public Service Loan Forgiveness program if you work in the public sector. You must make on-time monthly payments for 10 years while being employed full-time by a public service employer or volunteering with AmeriCorps or the Peace Corps.
If you teach at a low-income school or educational agency, you may qualify for the federal Teacher Loan Forgiveness Program. You must have taught low-income students full-time for five consecutive years. Most subjects will qualify for up to $5,000 in loan forgiveness, while mathematics, science, or special education teachers may qualify for up to $17,500.
If you have a total and permanent disability (TPD), you may qualify to have your federal student loans discharged. You must provide documentation of your TPD from the U.S. Department of Veterans Affairs (VA), the Social Security Administration (SSA), or a physician.
