We all know that there are mainly two ways to earn a student loan forgiveness, by working in public service and by participating certain payment plans.
However, there are conditions for these two ways. Not everyone can qualify and it will take a lot time and effort as well. So what exactly are these conditions?
If you work in public service, either in government or non-profit organization, the Public Service Loan Forgiveness Program (PSLF) is designed for you to earn the loan forgiveness. Other types of volunteer work could also be qualifies, such as military service or medical practice.
Working in public service is only the first step, there are other requirements you need to meet. You must make 120 qualifying payments, which means that you should pay the minimum amount on time.
If you are bot working in public service, teh Federal income-based repayment plans are one of those repayment plans that allows for some debt forgiveness, butonly after a minimum of 20 years. Repayment plans usually take longer time.
One thing you should pay attention to, only federal direct loan can be forgiven. Loans issued by private lenders are not part of the program. However, if your loans are borrowed from the Federal Family Education Loan Program (FFEL) or the Perkins Loan Program, you are allowed to consolicate debts into a federal loan. By consolidation, you are eligible for forgiveness. But you still heva to make 120 paymnents after the consolidation.