student-loan-forgiveness bills

Student Loan Forgiveness

Under certain circumstances, the federal government will cancel the remaining balance on your student loan bill. To qualify, you must meet certain criteria:

Low-income School Teachers

If you initiated a FFEL or Direct Loan after Oct. 1, 1998 and worked as a teacher for five years or more in an elementary or secondary school where the majority of students are considered low-income, the federal government may be willing to erase up to $17,500 of your student loan debt, including subsidized or unsubsidized loans. Teacher debt forgiveness is not available for PLUS loans. Some specialty teachers are also eligible.

Public Service

Borrowers who work at certain public service jobs qualify for Direct Loan cancellation after ten years. Qualifying public service positions include emergency management, public health care facility nurses and nurse practitioners, police officers and firemen, military service people, social workers, librarians, and many other state or federal government jobs that focus on public service. Public service workers who work for ten years and make 120 payments are eligible under certain types of repayment plans. The Direct Loan must have been initiated after October 1, 2007 and the loan may not be in default.

Volunteer Work

Some volunteer organizations, like Americorps, the Peace Corps, and Volunteers in Service to America (VISTA) offer loan forgiveness as part of the benefits package for volunteering.

Legal and Medical Students

Many law schools and medical schools will forgive debt to students who work on non-profit organizations. Terms vary, but in most cases, part of your loan will be canceled after working a specific length of time.

School-related Forgiveness

If the school you attended did not deliver as promised, you may be eligible for student loan forgiveness. Eligible criteria include the school closing before or immediately after your studies are finished, malfeasance, like forgery of your signature or other identity theft, or if the school withholds a refund after you withdraw.

If you are dissatisfied with the school or your education, don’t graduate, can’t find work, you still have to repay your student loans.

Bankruptcy, Disability, and Death

If you become permanently disabled or you die, your debt is canceled. You or your survivors must provide documentation of permanent disability or death, then the government will not expect your family to pay.

If you declare bankruptcy, in most cases you will still be obligated to pay your student loans. If you can prove that making the payments will cause financial hardship, you may be able to get student loans discharged in bankruptcy.

4 Comments on “Student Loan Forgiveness
  1. I have a student loan through Sallie Mae and am not able to acquire the correct forms to file for disability. I have been diagnosed with AMD in 2008. Sallie Mae has sent forms to me for my doctor but not the correct forms needed for doctor to fill out correctly. How do I get the proper forms to be filled out correctly? I have applied to Sallie Mae for disability and I have not yet succeeded in completing this process. Thank you. Can you help me get the correct forms?

    • I too need to know how to file for loan forgiveness. My doctor has advised me that I can never work again. I have osterartritis and have had total knee replacement. I can no longer stand on my feet or am able to walk any length of time. Can you tell me what to do and what forms need to be filled out? thank you so much for your help.

      • I am also disabled, what form do I need to prove my disability. I can not see any response to other peoples questions. That may of answered my questions.

  2. I DON’T KNOW HOW I OWE A STUDENT LOAN, I WILL NEVER UNDERSTAND, IN THE PAPERS THEY SEND ME SAYS IT WAS DISBURSE IN 2001, IN WHICH I NEVER RECIEVED, AT THAT TIME I WAS IN PUERTO RICO LIVING IN A LADY’S HOUSE IN WHICH SHE HAD ALZHIEMERS, I WAS IN DEPRESSION AT THAT TIME, THEY MUST OF WITHHELD IT WHEN I LEFT BUT I NEVER RECIEVED ANYTHING, CAN YOU PLEASE HELP, GOD BLESS YOU

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