What is Student Loan Forgiveness?

Updated: November 28, 2022
The Student Loan Forgiveness Program is a federal program that forgives student loans for borrowers who are employed in public service jobs. The program is designed to encourage individuals to enter and remain in public service.
Detailed answer:

Have you been paying your student loans on time, but they still seem like a huge burden? If so, you might be interested in finding out about student loan forgiveness.
Student loan forgiveness is a great way to reduce or eliminate your student loan debt. There are a number of programs out there that can help you reduce or eliminate your debt.
The most common type of student loan forgiveness program is called income-driven repayment (IDR). IDR programs allow borrowers to get their monthly payments capped and then tie them to their income. So the result is often lower monthly payments.
If you work in certain public service fields, such as teaching or law enforcement, you may qualify for a student loan forgiveness program offered by the federal government. The Public Service Loan Forgiveness Program forgives federal loans after 10 years of on-time payments on an income-driven repayment plan. In addition, teachers who have worked for five consecutive years in “low-income schools” may qualify for up to $17,500 in Teacher Loan Forgiveness.
While it’s true that these programs can help you reduce or eliminate your student loan debt, they do not mean that all of your loans will be forgiven—only part of them will be forgiven! If your loans are forgiven under an income-driven repayment plan, it may affect how much money you’ll owe in taxes on that forgiven amount.

What is Student Loan Forgiveness?. (2022, Nov 20). Retrieved from https://graduateway.com/qa/what-is-student-loan-forgiveness/