Do I Qualify for Student Loan Debt Forgiveness?
If you’re struggling to make your student loan payments, you may be wondering if you qualify for student loan debt forgiveness. The good news is that several programs are available to help you get relief from your student loan debt. But how do you know if you qualify? Here’s a quick overview of the most common qualifications for student loan forgiveness.
One-Time Student Loan Debt Relief
On August 24, 2022, the Biden-Harris Administration announced a Student Debt Relief Plan that includes a one-time student loan relief program for low-and middle-income families. The U.S. Department of Education (DE) will provide the following:
Up to $20,000 in debt relief to students who received a Federal Pell Grant
Up to $10,000 in debt relief to students who did not receive a Pell Grant
Borrowers with loans held by the Department of Education may qualify for relief if their individual income is less than $125,000 (or $250,000 for households).
The application for the one-time student loan debt relief will be available starting this month (October 2022). You will have until December 31st, 2023 to submit your application. You can learn more about the one-time student loan debt relief program here.
Income-Based Repayment Plans
If you’re struggling to make monthly student loan payments, an income-based repayment plan may be a good option. With an income-based repayment plan, your monthly payment is based on your income and family size. As your income increases, so too will your monthly payment. After 25 years of making payments, any remaining balance on your loan will be forgiven.
You must have a partial financial hardship to qualify for an income-based repayment plan. This means that the amount you would be required to pay each month under the standard 10-year repayment plan is more than what you would pay under an income-based repayment plan.
Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness Program (PSLF) is available to borrowers who work full-time in an eligible public service job. To qualify, you must make 120 qualifying monthly payments while working full-time in an eligible public service job. After making 120 qualifying payments, any remaining balance on your loan will be forgiven. Eligible public service jobs include:
- Military service
- Law enforcement
- Public health
- Social work
- Public interest law services
- Early childhood education • Government
- Public library science
- School librarianship
- Public housing
- Peace Corps
Other Student Loan Debt Relief Options
Although many different programs can help ease the burden of repaying student loans, not everyone qualifies for these options. If you don’t qualify for any of the options listed above, get in touch with our team at Wadhwani & Shanfeld. We can analyze your situation and help you determine what other debt-relief options are available for you. If paying off your student loan debt would cause significant hardship, you may be able to get relief through bankruptcy.
Contact our Los Angeles debt relief attorneys today at (800) 996-9932 to schedule a consultation!