Loan Forgiveness Programs
Federal student loan forgiveness programs are initiatives designed to alleviate the burden of student loan debt for eligible borrowers. As of my last knowledge update in January 2022, some key federal student loan forgiveness programs include:
Public Service Loan Forgiveness (#PSLF)
This program forgives the remaining balance on Direct Loans after borrowers make 120 qualifying monthly payments while working full-time for a qualifying employer in public service.
Teacher Loan Forgiveness (#TLF)
Targeted at teachers, this program forgives up to $17,500 in Direct or FFEL Subsidized and Unsubsidized Loans after five consecutive years of teaching in a low-income school.
Time-Based Forgiveness (#TBF)
Borrowers enrolled in Income-Driven Repayment (IDR) plans may be eligible for forgiveness of the remaining balance after 20 or 25 years of qualifying payments, depending on the specific plan.
Closed School Discharge
Borrowers whose schools close while they are enrolled, or within 120 days after withdrawal, may be eligible for full discharge of their federal student loans.
Total & Permanent Disability Discharge
Borrowers facing total and permanent disability may qualify for loan discharge, with specific conditions and documentation requirements.
It's important to note that eligibility criteria, application processes, and program details may change, and new initiatives may be introduced. Borrowers are advised to check with the U.S. Department of Education or their loan servicer for the most up-to-date information.