[ad_1]
Ever wonder what life would be like if you could make your student loans disappear?
It’s possible, but it isn’t magic.
Or immediate.
Or easy.
Or likely. (Sorry.)
But considering the mounting pile of outstanding student debt in the US — at $1.75 trillion, student loans were the largest non-mortgage source of household debt in 2021 — you should consider every option for wiping out yours, right?
If your student loans have become more than you can handle, seeking forgiveness or discharge of your debt could be an option. Check out this guide to student loan forgiveness so you’ll know all your options.
What Are Student Loan Forgiveness Programs and How Do They Work?
Student loan forgiveness programs are government-backed avenues for having your loans forgiven, depending on your situation. The programs are only available for borrowers with federal loans who meet certain criteria.
Before we dig into individual programs, let’s cover the ground rules.
First, a word about words: Forgiveness, discharge and cancellation essentially mean the same thing when you’re thinking about your student debt. They mean you no longer have to pay the remaining balance on your federal loans. But the terms are usually applied in different circumstances:
- Forgiveness is usually used in cases where you qualify because of your job or employer.
- Discharge typically refers to other reasons for not paying the debt, such as your financial situation.
- Cancellation is a more general term that often covers both.
Forgiveness programs generally fall into two categories: eligibility based on employment and eligibility unrelated to employment.
We’ve broken down the programs by work and non-work qualifications. We’ve also included “scam alerts” throughout because there are plenty of unscrupulous individuals and companies out there who prey on borrowers overwhelmed by student loan debt.
With that in mind, let’s dive in.
Student Loan Forgiveness Based on Your…
[ad_2]
Source link
