Student Loan Forgiveness

Students loan forgiveness programs are just as complicated as getting student loans in the first place. There are many different programs each designed for specific groups of people - If you have any questions about the programs listed below feel free to reach out to us.

Public Service Loan Forgiveness (PSLF)

Public Student Loan Forgiveness (PSLF) allows debtors who have worked in specific public service jobs to apply to have their student loans forgiven -- in full or in part -- after a specific amount of time. 

Although PSLF is a great program that is often promoted to many students considering a career in public service, in reality less than 1% of applicants are approved the first time they apply. Plus, most loan forgiveness programs require a history of at least 20 years of diligent loan repayment, which eliminates the possibility of relief for many borrowers when they need it.

Key resources from Lexria about Public Service Loan Forgiveness

What is Public Service Loan Forgiveness?

How to Qualify and Apply For Public Service Loan Forgiveness

Considering Public Service Loan Forgiveness? Here's What You Need to Know

Income Based Repayment (IBR)

Income Based Repayment Plans or IBRs are payment plans that are designed to keep monthly loan repayments low for those with limited income. They are offered for many types of federal loans but are almost never offered for private student loans.

While IBRs may reduce payments on a month to month basis there are important tax considerations to keep in mind when your loan is eventually forgiven. It is also important to make sure you meet any requirements to stay in an IBR. One of the most common requirements is updating your income each year. Being in default status on your loans may also hurt your ability to enter an IBR.

Key Resources from Lexria about Income Based Repayment (IBRs)

3 Borrowers Explain the Pros & Cons of Income Driven Repayment for Student Loans

Why is My Student Loan Balance Not Going Down?

Total and Permanent Disability Discharge (TPD)

Total and Permanent Disability Discharge can allow certain student loan borrowers to discharge their student loans. Generally to qualify you will need to be deemed permanently disabled (this is usually done by the Social Security Administration). You will also usually have to be collecting some type of disability benefit like Social Security Disability (SSD), Workers Compensation, or other income related to a Total and Permanent Disability.

Usually you must also continue to prove your disability and a low income after an initial application is accepted by the Department of Education.

Key Resources from Lexria about Total and Permanent Disability Discharge (TPD)

What is Total and Permanent Disability Discharge?

More Common Student Loan Forgiveness Topics

If you weren't able to find an article that answered any questions you had, please feel free to contact us. We'd be more than happy to help or find additional resources for you.

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