Who Qualifies For Student Loan Forgiveness

 Who Qualifies for Student Loan Forgiveness

who qualifies for student loan forgiveness
To qualify for student loan forgiveness, you need to have federal student loans and earn less than $125,000 annually (or $250,000 per household). You also need to have taken out your loans before July 1, 2022 and apply for forgiveness through a specific program such as borrower defense to repayment, closed school discharge, discharge due to death, discharge in bankruptcy, false certification discharge or total and permanent disability discharge. 

How Much of My Student Loan Can be Forgiven

The amount of student loan forgiveness depends on the program you apply for. For example, if you qualify for the borrower defense to repayment program, you can get up to 100% of your federal student loans forgiven. If you also received a Pell Grant during your education, you can qualify for up to $20,000 in forgiveness.

How do I Apply For Student Loan Forgiveness

The application process for student loan forgiveness varies by program. You can obtain application forms by contacting the loan servicer or by calling the U.S. Department of Education’s Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). There is no fee to apply for loan forgiveness. You do not need to pay anyone for help in applying for loan forgiveness. 

Can I Still Apply For Student Loan Forgiveness if My Loans are in Default

Yes, you can still apply for student loan forgiveness if your loans are in default. However, you will need to get your loans out of default first by either rehabilitating your loans or consolidating them into a Direct Consolidation Loan.

What is Loan Rehabilitation

Loan rehabilitation is a process that allows you to get your federal student loans out of default by making nine on-time monthly payments within 10 consecutive months. Once you complete the rehabilitation process, your loans will no longer be in default and you will regain eligibility for benefits such as deferment, forbearance, and loan forgiveness programs.

What is The Difference Between Deferment and Forbearance

Deferment and forbearance are both ways to temporarily postpone or reduce your federal student loan payments. The main difference between the two is whether you are responsible for paying the interest that accrues on your loans during the deferment or forbearance period. During a deferment, you may not be responsible for paying the interest that accrues on certain types of loans. During a forbearance, you are responsible for paying all of the interest that accrues on your loans.