
The National Student Debt Forgiveness Center is a game-changer for those struggling with student loan debt. They offer a variety of loan relief options to help individuals get back on their feet.
One of the main options is income-driven repayment, which can lower monthly payments to a more manageable amount. This can be a huge relief for those who are struggling to make ends meet.
The National Student Debt Forgiveness Center also offers public service loan forgiveness, which can forgive the remaining balance on a loan after 10 years of qualifying payments. This can be a huge weight off the shoulders of individuals working in public service.
By utilizing these loan relief options, individuals can start to build a more stable financial future.
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Eligibility for PSLF
To be eligible for PSLF, you must work in public service for at least 10 years for a qualifying employer. This can include federal, state, local, or tribal government agencies, as well as non-profit organizations.
You don't have to be working for a qualifying employer consecutively, as long as you've worked in public service for a total of 10 years.
Employers such as public schools, colleges, and universities, as well as special districts like public transportation and housing authorities, qualify as government employers for the PSLF Program.
The specific job you perform doesn't matter, as long as you're employed by a qualifying employer, so even support staff can qualify.
Public Service Borrowers Can Apply
Direct PLUS Loans are eligible for PSLF, just like other Direct Loans. This means that graduate and professional students who take out Direct PLUS Loans can apply for forgiveness.
Borrowers who work in public service can still apply for forgiveness, even if they haven't worked consecutively for 10 years. If you've worked in a qualifying public service job for 10 years or more, you may be eligible to have all your student debt canceled.
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Any U.S. federal, state, local, or tribal government agency is considered a government employer for the PSLF Program. This includes employers like the U.S. military, public schools, and public child and family service agencies.
Here are some examples of qualifying employers:
• U.S. federal, state, local, or tribal government agency
• Public elementary and secondary schools
• Public colleges and universities
• Public child and family service agencies
• Special governmental districts, such as public transportation or housing authorities
The specific job you perform doesn't matter, as long as you're employed by a qualifying employer. For example, if you're a full-time employee of a public school system, your employment would meet the requirements for PSLF, regardless of your position.
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Are Defaulted Direct Loans Eligible for PSLF?
Defaulted Direct Loans are not eligible for PSLF. However, resolving a default through rehabilitation or consolidation can make a loan eligible for PSLF. This means taking steps to bring your loan back in good standing can open up PSLF benefits.
To resolve a default, you can either rehabilitate the loan or consolidate it. Rehabilitation involves making nine consecutive payments on the defaulted loan. Consolidation, on the other hand, involves combining the defaulted loan with other eligible loans into a new Direct Consolidation Loan.
Student Debt Forgiveness Programs
Student Debt Forgiveness Programs are available to help alleviate the burden of student loans. You can opt for Income-Driven Repayment (IDR) plans, which reduce monthly payments based on income, as low as $0, and forgive remaining debt after 20 to 25 years.
The Public Service Loan Forgiveness (PSLF) program allows government and nonprofit employees to have their debt canceled after 10 years of qualifying payments. Direct PLUS Loans are also eligible for PSLF, including those made to graduate and professional students.
If you're struggling to make payments, you can consider Fresh Start for Borrowers in Default, a new program from the Department of Education that helps eligible borrowers in default temporarily regain student aid benefits and get out of default.
Here are some key details about these programs:
Canada Student Loan Interest Elimination
Canada Student Loan Interest Elimination is a game-changer for students. Effective April 1st, 2023, the Government of Canada has permanently eliminated the accumulation of interest on all Canada Student Loans.
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This means that if you're currently repaying your loan, you won't have to worry about interest piling up. You'll only be responsible for paying the principal amount.
However, it's essential to note that you're still responsible to pay any interest that may have accrued on your loan before April 1, 2023.
Student Debt Relief
In October 2023, monthly student loan payments will resume with interest accrual beginning September 1, so be prepared to make payments in October.
One in six adults in Los Angeles has student loan debt, with nearly 1.3 million borrowers owing a total of $54.5 million, averaging $42,060 per person.
If you're struggling to make payments, consider Income-Driven Repayment (IDR) plans, which can reduce your monthly payments to as low as $0 and forgive remaining debt after 20 to 25 years.
Public Service Loan Forgiveness (PSLF) is also an option, allowing government and nonprofit employees to have their debt canceled after 10 years of qualifying payments.
You can also take advantage of the Fresh Start program, which helps eligible borrowers in default temporarily regain student aid benefits and get out of default.
Don't forget to get free legal assistance from the Legal Aid Foundation of Los Angeles (LAFLA) or seek help from state officials, such as the DFPI Student Loan Ombudspersons.
Here are some important borrower protections to be aware of:
Remember to locate and contact your student loan servicer, and take advantage of DFPI Webinars to learn more about federal student loan repayment.
Military Loan
Military Loan Forgiveness is a game-changer for those with student debt. The Army will pay back up to $65,000 in qualified educational loans (up to $20,000 for reservists) after enlisting.
If you're considering joining the Army National Guard, you can expect a loan forgiveness benefit of up to $50,000 in qualified existing educational loans, as well as student loans acquired after enlisting.
First-time recruits with no prior military service who enlist in the Air Force can get up to $10,000 in qualified educational loans paid back.
Specialized Forgiveness Options
Direct PLUS Loans can be a game-changer for graduate and professional students who need help paying for school.
Direct PLUS Loans are eligible for Public Service Loan Forgiveness (PSLF), just like other Direct Loans. This means that if you're working in a qualifying public service job, you may be able to have your loan balance forgiven after making 120 qualifying payments.
Direct PLUS Loans made to parents may need to be consolidated before they can be eligible for PSLF.
Nursing Loan Repayment
Nursing Loan Repayment is a great option for those in the field. The HRSA, or U.S. Department of Health and Human Services, offers the NELRP, or Nursing Education Loan Repayment Program. This program repays 60% of a Registered Nurse's qualifying educational loans in exchange for two years of service in a critical shortage facility.
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Promises of Immediate Completion
Immediate completion of loan forgiveness is often a scam. Here's why: you can only access federally-held loan forgiveness through one of nine ED-approved loan servicers, and these services are free.
You can identify your loan servicer by checking your FSA account dashboard or by calling the FSA Information Center at 1-800-433-3243.
Most government forgiveness programs require a minimum number of qualifying payments before relief kicks in. You can contact your servicer directly to see if you qualify for an income-driven repayment plan.
Debt relief companies cannot negotiate with federal loan servicers to lower your payment levels. This means you should be wary of any company promising to do so for a fee.
Here are the ways to access federally-held loan forgiveness:
- Check your FSA account dashboard
- Call the FSA Information Center at 1-800-433-3243
- Contact your servicer directly to see if you qualify for an income-driven repayment plan
Q&A
You can qualify for student debt forgiveness through the Public Service Loan Forgiveness (PSLF) program. However, you must have made 120 qualifying payments.
To be eligible for PSLF, you must be employed full-time by a qualifying employer at the time you make each payment. This is a crucial requirement.
You'll need to submit a PSLF Form to prove your employment status. This form will help you demonstrate that you meet the program's requirements.
Make sure to keep track of your payments and employment status to ensure you're on the right path to debt forgiveness.
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Frequently Asked Questions
Is student debt Crisis Center legit?
The Student Debt Crisis Center is a legitimate non-profit organization with over 2 million supporters nationwide, dedicated to helping borrowers overcome the student debt crisis. With a decade of experience in advocacy, education, and outreach, SDCC is a trusted resource for those seeking debt relief.
Is there really a student loan forgiveness program?
Yes, there is a student loan forgiveness program in the US, offering relief through Public Service Loan Forgiveness and longer-term repayment plans. Learn more about eligibility and application requirements to see if you qualify.
Who do I contact about student loan forgiveness?
Contact the Federal Student Aid Information Center at 1-800-433-3243 for assistance with student loan forgiveness. You can also use the PSLF Help Tool to complete your form and get started with the application process.
Sources
- https://www.csnpe-nslsc.canada.ca/en/what-is-new
- https://www.whitehouse.gov/publicserviceloanforgiveness/
- https://communityinvestment.lacity.gov/student-debt-relief-and-loan-forgiveness
- https://finaid.uccs.edu/types-of-aid/educational-loans/forgive15
- https://www.aura.com/learn/student-loan-forgiveness-scams
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