If you’re a student who’s struggling to afford school expenses, consider applying for student loan forgiveness. This can be done via the Special Education Program (SEP) or through private organizations that work to financially support higher education. If you plan on using either of these options, you need to know how you can qualify. There’s quite a bit of information that goes along with each of these choices so it’s important to get all of the facts before making any decisions. Here are a few helpful facts about student loan forgiveness plans:
Federal Student Loan Forgiveness – Before you can qualify for federal student loan forgiveness programs you need to demonstrate extreme financial difficulty. You should make at least 10 good years of payments on subsidized federal student loans prior to qualifying. In some cases you may also need to have exhausted all available subsidized loans to meet the criteria. You can check out the official website for your federal financial aid office to verify if you do, in fact, qualify for federal student loan forgiveness programs.
Eligibility – To apply for federal student loan forgiveness plans, you will need to be enrolled full-time in an accredited college or university. Certain borrowers who attended schools within the Pell Grant program may also qualify. Eligibility does not apply if the borrower has accrued subsidized assistance under Direct Subsidized Stafford or Direct Plus Loans. Certain students with military deferments or immediate family income that meets specific requirements may also qualify. You can find more detailed information on the application process for student loan forgiveness programs by visiting the official website for the Department of Education.
Repayment Plans – To be eligible for student loan forgiveness programs, you must have a plan to repay your loans after graduation. Students who wish to pursue this option must first make sure they are fully enrolled in school. Many graduates decide to return to school to further their education and receive a degree that actually requires repayment of a loan. However, if you do not plan to go back to school, you do not necessarily have to repay your loan. You will only be required to make payments after you have completed a minimum of six years on the waiting period.
How Do You Find Out If You Qualify? – After graduation, make sure you contact the agency through which you received your financing. Many student loan forgiveness programs do not require the borrower to repay the debt in full. If repayment is required, your service in the Armed Forces or a veteran of the Peace Corps who agrees to accept the reduction of monthly payments could qualify. You can usually learn about eligibility requirements by contacting the agency that offered the financing.
Will there be a payment adjustment involved? – Student loan forgiveness programs are usually open to all students who meet certain income and credit requirements. There may be a monthly payment adjustment, but repayment will likely only be required for six months or less. This means you do not have to pay back more than six hundred dollars. Repayment of one thousand dollars will qualify for a student loan forgiveness program.
Are there any eligibility requirements to apply for a student loan discharge? – The only prerequisite for eligibility is that you have exhausted all options to repay your private student loans. This does not mean that you cannot apply for forgiveness. If you have exhausted all other financial relief programs as well, you may qualify for a student loan discharge. To find out if you qualify for discharge, contact the lender that holds your loan.
What do I need to do to find out what student loan forgiveness programs may qualify me for? – You will need to work with a licensed federal loan relief agency. They can help you find out what programs may qualify for you.