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5 Student Loan Forgiveness Programs You Should Know About


It is not unusual for graduates to have trouble making their student loan payments. Some repayment terms have massive principles that often require up to 60% of a graduate’s income. When you factor in high interest rates, it’s no wonder that one out of every 10 Americans defaults on a student loan.

Fortunately, you could qualify for one of the following student loan forgiveness programs.

1. Public Service Loan Forgiveness

The Public Student Loan Forgiveness program forgives part of the student loan debt for individuals who work in public service professions. To qualify, you must be employed full-time with a local, state, or federal agency. 501(c)(3) organizations are also eligible.

You may request loan forgiveness through PSLF after you make 120 payments.

2. Income-Based Repayment Forgiveness

Income-based repayment plans are not traditional student loan forgiveness programs. An IBR won’t wipe out your student loan debt, but it can significantly reduce your monthly payments. IBR loan payments are typically 15 percent of your discretionary income, which most people can afford.

To qualify, you must show proof of financial hardship. You will need to continue to apply for this program every year to continue receiving IBR. After 20 or 25 years (depending on the type of loan), any remaining loan amount is forgiven.

3. Pay As You Earn Forgiveness

The Pay As You Earn program is similar to the IBR program, except your loan payments are capped at ten percent of your discretionary income. As with the IBR, you’ll have to show proof of financial hardship and reapply each year.

Once you have made consistent PAYE payments for a total of twenty years, any student loans you still owe will be eligible for complete forgiveness.

4. Forgiveness With Revised Pay As You Earn

Another student loan forgiveness program similar to PAYE is the Revised Pay As You Earn program. Anyone with qualifying federal student loans may be eligible for this program. Under REPAYE, your student loan monthly payments are capped at ten percent of your discretionary income.

You will need to reapply for this program annually to continue making REPAYE payments. REPAYE forgives the balance on undergraduate student loans after 20 years of payments. The program forgives graduate school student loans after 25 years of regular payments.

5. Federal Perkins Loan Cancellation

The federal Perkins Loan Cancellation is available for individuals in specific occupations. To qualify for federal Perkins loan cancellation, you must prove that you used the loan to cover your education costs in certain fields.

Individuals who might qualify for this program include:

  • Teachers
  • Librarians
  • Public defenders
  • Police officers
  • Nurses
  • Firefighters
  • Education professionals
  • Service volunteers
  • Certain military members

These are only a few of the professions that may be eligible for loan forgiveness. A bankruptcy attorney in Cleveland can help you find out whether you qualify.

The federal Perkins loan cancellation reduces your student debt for each year that you work in your profession. Eventually, your entire loan is forgiven, provided that you do not leave the job.

Contact a Cleveland Bankruptcy Attorney Today

Are you having difficulty making your student loan payments? Student loan debt dramatically affects your life and makes it nearly impossible for you to pay other bills, including rent.

Our experienced Cleveland bankruptcy attorneys understand your situation. Let us help you find a realistic solution for student loan forgiveness.

Contact Luftman, Heck & Associates, LLP today to schedule your free, no-risk case review. Call (216) 586-6600 or use our quick contact form.

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