Loan forgiveness is typically offered to borrowers who meet certain criteria, depending on the specific loan program. Here are a few examples:
- Public Service Loan Forgiveness (PSLF): This program offers loan forgiveness to borrowers who work full-time for a qualifying public service employer and make 120 qualifying payments on their Direct Loans. After 120 payments, the remaining loan balance is forgiven.
- Teacher Loan Forgiveness: This program offers loan forgiveness to teachers who work full-time for five consecutive years at a low-income school or educational service agency. Borrowers may be eligible for up to $17,500 in loan forgiveness.
- Income-driven repayment plan forgiveness: Borrowers who enroll in income-driven repayment plans may have any remaining loan balance forgiven after making payments for 20-25 years, depending on the specific plan. However, any forgiven amount may be taxable as income.
- Closed school discharge: Borrowers who attended a school that closed while they were enrolled, or who withdrew within 120 days of the school's closure, may be eligible for a full discharge of their federal student loans.
It's important to note that loan forgiveness programs have specific eligibility requirements, and not all borrowers will qualify. It's a good idea to carefully review the criteria for any loan forgiveness program you're interested in, and to contact the loan servicer or program administrator for more information.
