You may have dreamt of your student loans disappearing — and what a nice dream that is — but would it surprise you to hear that it’s possible?
There are several ways borrowers can have their loans forgiven or discharged, but they have strict requirements. Perhaps the most well-known way is the Public Service Loan Forgiveness (PSLF) program, which is on the chopping block in the Trump administration’s proposed budget.
In the PSLF program, someone working in government or a non-profit that directly benefits the public (there are very strict eligibility guidelines) can apply to get their federal student loan debt forgiven after 120 qualifying payments. The first wave of potentially qualifying loans is set to be forgiven starting this Fall.
Other circumstances in which your federal student loans may be discharged:
Anyone who attended Corinthian Colleges, who has been in the media lately, can apply for Borrower Defense to try to cancel their federal student loans.
While there are ways to discharge or forgive your federal student loans, they require special circumstances and often proof. Beware: Loan forgiveness amounts are often taxed as income, so while it is very welcome to have your loans forgiven, you may get a not-so-welcome surprise come tax season.
It doesn’t hurt to do your research to see if you are eligible for any of these. If you are not eligible, but need some relief from your student loans, there are options to potentially lower your payments. Income-based repayment plans cap your payments at 10 percent of your income and forgive the rest of your loans after 20 years (for undergraduate degrees).
Options are available to help
Most people do not realize that there are programs designed to help those who may be struggling with their student loan payments. Thousands of borrowers have trusted Ameritech Financial to be their advocate. Click here to find out what options are available. Our services could help you get back on track.Get Started Learn More