If you're here, you probably want your student loan debt forgiven, don't you? Here's exactly how you can file for student loan forgiveness and ensure that you meet the qualifications.
As students, paying for your education can be difficult. Most likely, you are forced to take out loans which means debt. Bloomberg reports that 2019 was the first year in over a decade in which young Americans have faced such high debt levels. With the start of 2019, many American 18-29 year-olds found themselves swimming in a debt of $1 trillion. Since approximately one million student borrowers default payments every year, it seems likely that nearly half of that money will not be repaid (Yahoo Finance).
This is much better than the 20-25 year forgiveness offered previously. Through PSLF, there is no budget cap on the amount of debt forgiven. Since this program began in 2007, borrowers have only managed to qualify as recently as October 2017. Since then, approval rates have not been promising. Approximately 0.5% of applicants are awarded with student loan forgiveness.
However, even though only 300 borrowers have been allotted public service loan forgiveness, we can expect higher numbers in years to come as borrowers learn the proper program requirements.
Qualifications for student loan forgiveness
Basically, the program is most interested in who you work for; not necessarily the work you do there.
You may qualify if you work full-time at a:
According to Forbes, there are five things to remember when you are applying for a PSLF program:
On top of that, these borrowers must be full-time employees working 30+ hours a week in an eligible federal, local, or state public service position - or they work at a nonprofit company and make 120 qualifying on-time payments.
In the most recent quarter, almost 12,000 applicants submitted an incomplete Employer Certification Form, which negatively affects their chances of receiving student loan forgiveness.
On top of this, borrowers must complete most, if not all, of the 120 necessary payments while enrolled in this plan. If you’re not sure which income-driven student loan repayment plan will help you maximize that student loan forgiveness, check out this nifty calculator.
Check out studentloans.gov to learn more.
See what you could save using this student loan refinance calculator!
If you’re struggling to pay off debt, then student loan forgiveness might be the answer you’re looking for. Some states are even assisting eligible graduates as they pay off their loans.