Student Loan Relief Government
Student loan debt is a serious issue in the United States. The average college graduate leaves school with over $30,000 in student loan debt and the number is growing every year. It’s no wonder that so many people are trying to find ways to get rid of their student loans as quickly as possible. Fortunately, there are programs available from the government that can help you reduce your monthly payments or even get some of your debt forgiven completely if you qualify for one of these programs:
Student Loan Forgiveness
If you are in the process of paying off a student loan and feel like it may take forever, or if you’re already out of school and struggling to make payments on your loans, then there are programs available to help.
As with all things related to student loan forgiveness, there are many factors that determine whether or not you qualify for these plans. The government has several different ways for people who have been through school and graduated (or are close) to get forgiveness on their loans.
Income-Driven Repayment Plans
Income-driven repayment plans are designed to help those with high student loan debt repay their loans.
If you have federal student loans, you can enroll in an income-driven repayment plan if:
- You borrowed your first loan after July 1, 2014 (or before this date and have been making payments for less than 10 years).
- You are a new borrower on or after July 1, 2014. A new borrower is someone who did not have any outstanding balance on their Direct Loan Program account as of October 7, 1998 or has not otherwise been repaying federal student borrowing since October 7, 1998. If you were previously in an Income-Driven Repayment plan and chose to return to standard repayment at the end of 25 years when it would have ended anyway under the terms of your standard 10-year repayment plan but because you took advantage of this provision by switching back to standard repayment early and now need more time before reaching that point again during which time payments could be made through an IBR plan they will count towards qualifying service as well!
Pay As You Earn Plan
If you’re a federal student loan borrower, the Pay As You Earn plan can help you pay off your loans.
You must have a high balance on Direct Loans and have made payments for at least three years under an income-driven repayment plan. If you’ve been paying for less than three years, but had a high balance before switching to an income-driven repayment plan, then your payment will be calculated based on what it would have been after three years of payments. The government may also consider factors such as whether or not the borrower has consolidated their loans into one new loan with a single servicer or if they’ve consolidated while they were in school and still owe money on those other loans even though they’re no longer in school now; that means that people who are already struggling financially might be able to get help sooner rather than later as well!
- How much can I earn? Your monthly payment amount will depend upon several factors including how much money per month you make (your discretionary income), how many people are dependent upon this money
Revised Pay As You Earn Plan
The Revised Pay As You Earn Plan (REPAYE) is a repayment plan for federal student loans. The plan allows borrowers to cap their monthly student loan payments at 10% of their discretionary income, and all remaining debt will be forgiven after 20 years if you still have qualifying loans.
Here’s how it works:
- You may qualify if your Direct Loan balance is below $30,000 and no other types of federal debt are in default.
- If you do not meet the above requirements, but have a partial financial hardship that prevents you from making higher payments under the standard 10-year repayment plan, then your payment could be lowered to as low as $0 per month until such time as it becomes reasonable for you again — then your payment would go back up to 12% of discretionary income (that means an additional 5% on top of what’s already being paid). This is called “deferment,” and this option expires after 12 months (unless extended by submitting an application).
Income-Based Repayment Plan
- Repayment is based on income.
- Repayment is less than standard repayment.
- Repayment is capped at 20% of discretionary income (20-25 years) or 10% of discretionary income (25-30 years).
- Payments are forgiven after 20 or 25 years, if you have been in the plan for that long and still have loans left to repay. If your loans are paid off before then, any remaining balance is forgiven.* Payments are forgiven after 30 years if you started the plan before 2007; those who started it afterward will not see their payments forgiven until October 2017, ten years after starting their repayment period.* After 25 years, any remaining balance will be discharged by the government and no further payments will be required from you.
Income-Contingent Repayment Plan
If you’re struggling to make your monthly payments, the Income-Contingent Repayment Plan may be a good option for you. The plan bases your monthly payment amount on how much money you earn and how many family members you have to support.
This program is designed for borrowers who have high debt relative to their income or lower incomes. If your student loans are not fully repaid within 25 years under this plan, any remaining balance will be forgiven (this feature would mean that no outstanding balance would be due).
Borrowers must submit an application every year along with updated tax information.
Public Service Loan Forgiveness
Public Service Loan Forgiveness is a program that forgives student loans after 10 years of payments. You must work in a public service job to qualify and make 120 qualifying payments in an income-driven repayment plan, which is the only way you can receive this forgiveness.
In addition to meeting these requirements for Public Service Loan Forgiveness, you’ll need to have Direct Loans (not federal Perkins loans) with any kind of loan servicer. This means you can’t get your loan through Sallie Mae or Wells Fargo—it has to be through Navient or FedLoan Servicing.
Perkins Loan Cancellation and Discharge
If you’re a borrower who has been employed by one of the following organizations, your Perkins Loan may be eligible for cancellation:
- A public service organization such as a school district, hospital or social service agency.
- A state or local government agency in certain locations.
- A 501(c)(3) non-profit organization that qualifies under section 501(c)(3).
If you meet the eligibility requirements and have made 120 monthly payments on your loan, we can cancel up to 100% of what you still owe us (less any amounts paid directly to collections).
The government has programs to help with student loan forgiveness.
The government has programs to help with student loan forgiveness. These include Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness and employer-sponsored repayment plans.
These programs are often complicated, so it’s important to know if you’re eligible for one of them before making a decision about what program is best for your needs.
The government has many programs that can help you with student loan relief. It’s important to know what your options are and make sure that you fill out all the necessary paperwork so that you don’t miss out on any opportunities for relief!