Every year around one million students default on a federal loan, which may be to the tune of $20 billion. Are you facing a financial crisis that is making it impossible for you to repay your student loan? Then, you may need to consider seeking student loan forgiveness.
For this, consulting and hiring a debt settlement attorney is of utmost importance. A debt attorney will help in student loan debt forgiveness for teachers, veterans, nurses, federal employees, doctors, public servant and others.
How to get rid of student loans? Learn if you are eligible for student loan debt forgiveness
There are many kinds of student loan forgiveness programs that you can opt for:
- Public Service Loan Forgiveness (PSLF)
This is mainly for those who work in the public sector – non-profit employees, public school teachers, government employees etc.
You can qualify for complete student loan forgiveness after 10 years (120 payments), instead of the usual 20 to 25-year forgiveness. What’s more, any qualifying loan balance that remains after 10 years is entirely forgiven and to top it. The IRS does not include this forgiven debt under taxable income.
PSLF forgives any non-defaulted loan borrowed under the William D Ford Federal Direct Loan Program. For other loans to become eligible, such as the Federal Perkins Loans or Federal Family Education, they need to be consolidated into a Direct Consolidated Loan.
You need to make 120 qualifying payments while working in an eligible job and annually submit Employment Certification form after each qualifying payment.
- Teacher Loan Forgiveness (TLF)
The TLF program is different from the Direct Loan or Obama Student Loan Forgiveness program. TLF is specifically designed to encourage students to enter the education field. This program awards educators with a principal reduction of their federal loans. This also incentivizes teachers to remain in the teaching field.
Under this program, qualifying teachers receive a tax-exempt principal reduction of either $5,000 or $17,500 on their federal loans. This helps in reducing the monthly loan payments and more manageable. Not only this, it also makes the teachers eligible for the public service loan forgiveness program.
Can nurses get loan forgiveness?
The good news is that nurses do qualify for student loan forgiveness. If you are a full-time nurse you qualify for up to 100% of your Federal Perkins loans discharged.
A unique program, called NURSE Corps Loan Repayment Program, is meant specifically for nurses who work in underserved communities at Critical Shortage Facilities. Full-time nurses may also qualify for Public Service Loan Forgiveness Program after making consecutive payments for 10 years.
Can you go to jail for not paying a student loan?
No, you cannot be sent to jail for failing to pay a student loan, since it is considered a ‘civil debt’ and you cannot be arrested for not paying your civil debt.
The federal government has put several safeguards to protect students under the debt of student loan to give them a way out through student loan forgiveness programs.