Student Loan Debt Forgiveness

Looking for student loan debt forgiveness? In some situations you can get federal student loan forgiveness.

Yes, under certain circumstances, the federal government will cancel all or part of your student loan.

Federal Student Loan Forgiveness

With college so expensive, many college graduates have $50,000 or more in student debt.

If you are considering a student loan, check out this student loan documentary Student Loan Default Movie on YouTube www.youtube.com.

After graduation, the job market makes it difficult to find high paying jobs. Is is possible to obtain student loan forgiveness?

Yes, under certain circumstances, the federal government will cancel all or part of your student loan.

Due to COVID-19, interest rates on federal student loans was temporarily reduced to 0% beginning March 13 2020. Starting in September 2023, college loan interest rates, which are fixed and vary by loan, will return to the same rate they were before the freeze. Monthly payments in October will typically return to the original amount for loans.

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New Student Loan Forgiveness Programs

2023 Student Loan Forgiveness on income-driven loans - In July 2023, Biden announced plans to wipe out $39 billion in student debt for more than 800,000 borrowers. You may be eligible for student loan forgiveness if you have made 240 or 300 qualifying monthly payments — roughly 20 or 25 years of payments — on an income-driven repayment plan or standard repayment plan.

2022 Student Loan Forgiveness Program - In August 2022, President Biden announced that some federal loan amounts may be forgiven based upon income level ($10,000 loans per student or $20,000 loans for Pell Grant recipients). Income limits are $125,00 for individuals and $250,000 for couples. This was held up by litigation and ultimately ruled against by the US Supreme Court.

ITT Technical Institute Loan Forgiveness - Students who used federal loans to attend ITT Technical Institute as far back as 2005 will automatically get that debt canceled after authorities found "widespread and pervasive misrepresentations" at the defunct for-profit college chain, per an order issued in August 2022. The action will cancel $3.9 billion in federal student debt for 208,000 borrowers.

Corinthian Colleges - In June 2022, it was announced that the U.S. Department of Education will forgive $5.8 billion of federal student loans for those who attended Corinthian Colleges, a chain of for-profit schools that deceived students about their job placement rates and students' ability to transfer credits. This should be welcome news to the 560,000 borrowers.

Ashford University Student Loan Forgiveness - In August 2023, the Biden administration announced oit would forgive $72 million in student debt for more than 2,300 borrowers who attended Ashford University, an online for-profit school based in San Diego. The administration claimed the school made substantial misrepresentations to students between 2009 and 2020.

Westwood College Student Loan Debt Cancelled - In August 2022, the U.S. Department of Education announced that ~ 79,000 students who attended Westwood College, a private, for-profit institution that closed in 2016, will receive full student loan forgiveness. The department said in its announcement that evidence showed "the school engaged in widespread misrepresentations about the value of its credentials for attendees' and graduates' employment prospects."

For more information about federal government programs to help paying off student loans and student loan debt forgiveness, see studentaid.gov

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New Student Loan Debt Forgivenes Programs

Former President Obama has taken regulatory measures to make student loan repayments easier. There are some federal income-based repayment programs that adjust your payments to cap at 10% of your discretionary income, and provide loan forgiveness after 20 years. The student loan debt forgiveness may occur after 10 years for those in public service.

There is a downside to this program, in that by reducing your payments, your total amount to be repaid may be higher. But if you are struggling to pay these loans, this may be a very good program for you.

This program is called "Pay As You Earn Repayment Plan". For more information about this special federal government program to help pay off student loans and student loan debt forgiveness, see studentaid.gov.

Other programs are offered depending on the mood of Congress, so be sure to check out the link above for details.

Student Loan Forgiveness for Volunteers

Peace Corps - Serve in the Peace Corp and make a real difference in the lives of others in the world. Volunteers may receive deferment of Stafford, Perkins and Federal Consolidation loans, and partial cancellation of Perkins loans. The student loan debt forgiveness for Perkins loans is 15% per year of service, up to 70% total. For information about joining the Peace Corp call 800-424-8580.

Americorps - Americorps offers a student loan forgiveness program. If you serve 12 months you may receive up to $7400 in stipends, and $4725 to be used to pay toward your student loan. If you are interested, the Americorps phone number is (800) 942-2677.

Volunteers in Service to America (VISTA) This program allows you to volunteer with private, non-profit groups helping with homelessness, poverty, hunger and illiteracy. For 1700 hours of service, receive $4725. Phone number for more information: 800-942-2677.

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Student Loan Forgiveness for Teachers

Perkins Loan - You may be able to cancel a Perkins Loan if you are teaching full-time at a low income school, or in certain subjects. Check with the school that made your loan for more information.

Stafford Student Loan Forgiveness for Teachers - You may be eligible for loan forgiveness on your Stafford student loan if you teach full time for five consecutive years at a low-income school.

These student loan forgiveness programs may apply to Consolidation Loans too.

For more information about student loan debt forgiveness, see studentaid.ed.gov.

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