So, you’ve been looking for student loan programs or waiting for Joe Biden’s student loan forgiveness program; and wondering when will student loan forgiveness start?
There is good news for those searching for debt relief.
Options for debt relief are unexpectedly easy to find.
The program began on July 2020.
If you’re not sure what this program entails, let us explain:
The Biden-Harris Administration’s Student Debt Relief Plan is a new plan that allows borrowers who earn less than $150,000 for individuals and $250,000 per household forgiveness between $10,000 and $20,000.
This plan is incredibly generous and goes a long way to assisting borrowers who have been seriously struggling to make their loan payments.
However, there are some drawbacks.
For example, you’ll need to promptly sign up for an income-driven repayment plan before you can be eligible for this forgiveness program.
What are the requirements for this program?
Borrowers who make less than $150,000 for individuals and $250,000 for couples and heads of households get between $10,000 and $20,000.
You would be eligible for $20,000 if you received a pell grant and $10,000.
If you’re interested in applying for the program, keep an eye out for more information about dates and deadlines.
The current program ends December 31, 2022.
Here are some additional student loan forgiveness programs
Student loan forgiveness allows a portion of your student loans to be forgiven or canceled.
Fortunately, there are several types of programs, and they each have different eligibility requirements.
You can use these programs to have your federal student loans discharged immediately if you work in certain fields or meet other criteria.
Here are some of the most common:
Public Service Loan Forgiveness (PSLF)
This program forgives your remaining debt after ten years of eligible employment in public service jobs.
To qualify for PSLF, you must work for a government agency, state department, or tribal 501(c)(3) non-profit organization and certify your employment yearly.
The program forgives the balance after you make 120 qualifying payments on your loans.
Teacher Loan Forgiveness
The Teacher Student Loan Forgiveness Program provides up to $17,500 in forgiveness (up to $5,000 per year) for teachers who teach full-time at low-income institutions or schools where there are routinely high teacher shortages.
Instructors who teach STEM at elementary or secondary schools may be eligible for up to $17,500 in forgiveness.
You must teach full-time at an eligible school for five consecutive years, with at least one of those years after 1997 – 98.
In addition to that, teachers who teach in certain low-income schools may also be eligible for up to $5,000 more in forgiven loans each year they teach in these schools.
Perkins Loan Forgiveness Program
Perkins loan forgiveness program offers up to 100% loan forgiveness.
The percentage increases by 15% in the first two years, 20% in the third and fourth years, and 30% in the fifth year.
State-Sponsored Forgiveness Programs
States across the country offer student loan forgiveness programs for teachers.
Check with your local agencies to find one in your area.
Military Student Loan Forgiveness
Military members might be eligible for loan forgiveness if they served at least one enlistment obligation period on active duty while serving in the armed forces.
You are eligible for this program if you served in the Army National Guard or Army Reserve; Navy Reserve; Air National Guard or Air Force Reserve; Marine Corps Reserve; Coast Guard Reserve; Army, Navy, Air Force and Marine Corps Active Duty; or Full-Time Support of the Ready Reserve.
National Health Service Corps Loan Repayment Program
The federal government will pay off your student loans if you agree to serve in an underserved community as a part-time primary care provider for a minimum of two years.
The NHSC also offers loan repayment of up to $50,000 per year for doctors who work full time at an NHSC site.
Here’s a quick overview of common payment plan categories:
Student loan forgiveness can be a great way to eliminate your debt, but it can also be confusing.
There are several different student loan forgiveness programs available; so do some research, and find out what’s right for you and your financial situation.
Pay As You Earn (PAYE):
This program is available if you took out loans after October 1, 2007 and work in an eligible public service job.
It allows borrowers to make payments based on their income; the more they make, the higher their monthly payment will be.
If they work in public service for ten years or more, they may qualify for full or partial cancellation of their remaining balance under this program.
Income-Based Repayment (IBR):
Income-Based Repayment is a repayment plan for borrowers with federal student loans.
It is based on the borrower’s income and payment capabilities.
Under IBR, the borrower’s monthly loan payments are calculated as a percentage of their discretionary income, defined as the borrower’s adjusted gross income (AGI) minus 150% of the poverty guideline for their family size and state of residence.
Contingent Repayment (ICR):
This program is similar to the IBR but does not require you to work in public service.
Instead, you must have a partial financial hardship and have been repaying an eligible federal student loan for at least 10 years.
Your monthly payment will be 15% of your discretionary income and will never exceed the amount of interest accruing on your loan.
It also allows you to make payments based on your income, but unlike the IBR, it does not forgive any balance after 20 years of qualifying payments.
