You may be able to get your student loans forgiven, which sounds great. However, there are a lot of things you need to think about before deciding that this is the best solution for you. For instance, what if you owe more than $57k? What if you only have five years left on your repayment plan and want to switch it up? We’ll talk about these six reasons why student loan forgiveness might not be worth it in our blog post today!

The Basics

Let’s start with the basics. There are some 3.8 million people currently in federal student loan repayment plans, and one in nine Americans have student loans. As you can imagine, debt is at an all-time high, which is making the idea of student loan forgiveness seem like a great idea for some. The problem? Only two types of student loan borrowers are eligible for this type of assistance: Federal Direct Subsidized Loans : These are the loans you borrow for school and go through the federal government. These loans are guaranteed by the government and are only used for undergraduate or graduate degrees. Federal Direct Unsubsidized Loans : These are the loans you borrow but go through private lenders.

The Student Loan Forgiveness Program

There are several options for you to look into, but there is only one true program for federal student loans. You must have one of these loan options to qualify. They include Direct Loans Direct PLUS Loans Federal Family Education Loan Federal Grad PLUS Loans Parent PLUS Loans Forgiveness under the Direct Loan Program You can choose from two options when it comes to your Direct Loans. The first one is the standard 10-year plan, which is at the low end. You can choose to keep this plan or switch to a flexible repayment plan if you qualify. Depending on your income and resources, you may be able to choose a Pay As You Earn (PAYE) repayment plan. You may be able to pay less than what you’re currently paying. You can also earn a federal income tax credit for those payments.

Loan Cancellation

One of the most popular reasons for student loan forgiveness is called loan cancellation, which basically allows you to have your loan payments forgiven, and start over with a different loan. This happens when your financial hardship is great enough that your income qualifies you for forgiveness. The process is tricky and should be handled by an experienced and knowledgeable person. The forgiveness money you’re offered can be spent however you want, and you will have to repay the original student loan back to the government. That’s the only way you can receive the money you’re owed. For instance, imagine that you’re only required to repay the amount of student loan debt that you already owe (if that’s all that you can afford), and you put in a request to have the payments forgiven.

Consolidation

If you’re serious about paying off your student loans quickly, you may want to consider refinancing your loans. You can combine them into one loan and pay off your loan sooner. But, you can’t do this through income-based repayment or forgiveness. You must consolidate to have all the loan income match and get your loan paid off sooner. Void in Certain Countries If you want to apply for federal student loan forgiveness, you must be in the United States. However, there are a number of countries where the student loan forgiveness does not apply. It varies from country to country, but you should be aware that this will not apply if you have a foreign student loan.

Bankruptcy

In some cases, debtors may be eligible for bankruptcy and if you get the right score, your student loans can be discharged. Your loan servicer may contact you if they have this information. However, bankruptcy is an expensive process, and if you’re not sure if your student loans will be discharged, there’s no reason to go bankrupt. A bankruptcy lawyer can help you through the process to determine whether or not you will be eligible. Bankruptcy is the best way to recover assets, especially if your assets are tied to your student loans. If your student loan debt is below $500, then you don’t have to file for bankruptcy. As you get your debt paid off, your bankruptcy lawyer will need to assist you with the next steps.

Conclusion

The thing is, you can’t guarantee your loan balance will be forgiven. The type of debt you have or how old you are is the biggest thing to consider. For example, you’ll be forgiven on any undergraduate debt, but not on the current student loan you still owe after that undergraduate degree. If you currently owe student loans that are forgiven when you graduate, you’re not guaranteed student loan forgiveness when you have to take out your second or third undergraduate degree. Furthermore, a lot of employers in these situations do not want to hire someone who is currently under a repayment plan.

The post 6 Reasons Student Loan Forgiveness Might Not Be Worth It appeared first on Loan App.

Many nurses are burdened by student loans and wondering if there is a way to get them forgiven. The good news is that there are many different paths through which you can get your student loans forgiven, but it’s important to know that forgiveness options for nurses may be limited depending on where you live, what type of nursing degree you have, and the type of debt you’re carrying. In this article we’ll provide an overview of all the possible ways in which you could get some or all of your student loan balance discharged – including those with private lenders or federal loans.

Introduction

For the sake of convenience and brevity, we’ll leave out the details of every repayment option here and focus on the very common case where a debt is discharged. In order to be eligible for a discharge, you must meet certain conditions, such as not having more than a 10% balance or having made regular payments for at least 10 years. Note that some of these options have a different set of rules that require your employer to attest that you meet certain income requirements. Some employers (notably government agencies) are not required to attest. Because of this, some employers may choose not to offer these kinds of forgiveness options. Why Did We Write This?

How to get student loans forgiven

If you have federal student loans, the process for getting your loans discharged will likely be simpler, although it’s not without its caveats. If you’re looking at student loan forgiveness for your student loans and the type of loan you have, you should start by figuring out your Federal Student Aid (FSA) eligibility. If you have federal loans, your FSA eligibility is based on a few key factors: Your income. If your adjusted gross income for the year is below $65,000, you qualify for FSA loans. You’ll also need your salary that year to be below a certain amount. If you’re not eligible for FSA loans, you may qualify for Direct loans instead. If you are eligible for Direct loans, there is a “normal income” test to determine if your income is eligible for Direct loans or FSA loans.

How to get student loans forgiven with federal loans

Federal student loans are the most flexible in terms of forgiveness programs. The private lender option is much more limited in terms of eligibility. But there are some options for private loans too. The following examples are from Fedsource: Tunnel of debt – Your student loan is in deferment for a few years, then forgiven. Waived education costs – A non-repayment loan that is forgiven will still show up on your credit report as a loan. So, you’ll have to report on your credit score every time you apply for a new loan in order to keep your credit score high. The forgiven amount will be a “deduction” on your credit score.

Military service

Nurses who have been honorably discharged from the military are in a strong position to get their student loans forgiven. You can apply for discharge from the Department of Defense Education Activity, the VA-Geoffrey Taylor Caregiver loan program, the G.I. Bill and a number of other programs. Residency for military health workers The VA is currently providing some partial (30% – 50% of total program cost) loan forgiveness for military health workers in the Residency for Military Health Professionals program (RMHP) as well as some in the Navy program. Off-duty employment Nurses who are employed in an off-duty capacity (paid for by the military, state, or the federal government) are eligible for loan forgiveness through the VA’s Loan Forgiveness for Federal Employees Program.

Public service

The Public Service Loan Forgiveness program (PSLF) is a federal program designed to encourage career or technical education programs in fields such as health sciences, law, public safety, the arts, and government. However, all candidates must have their loan balances forgiven under this program – which is done through participating federal loan servicers – in order to be eligible for PSLF. Any student loan borrower who starts work in a PSLF eligible profession as of June 30, 2007, and files a “certification of employment” form by September 30, 2018, will be eligible for PSLF. There are two requirements for PSLF eligibility: A total amount of Direct Loan or Federal Family Education Loan (FFEL) debt incurred at the date the qualifying certification is submitted must be at least $55,000.

Teacher loan forgiveness

While your current income may be lower than a nurse, you may still be eligible for student loan forgiveness. You’ll need a bachelor’s degree, and unless you’re a part of a nursing shortage area, your area of study will likely qualify.

How to get student loans forgiven with private loans

Get a Direct Loan You can get a Direct Loan from the federal government through a federal student loan servicer. Note: The federal Direct Loan Program was eliminated in 2010. If you have student loans under the federal Direct Loan Program you will not be able to get your loans forgiven through the Public Service Loan Forgiveness Program unless your loans have been consolidated. Direct Loans come with many advantages. First, you can consolidate your Direct Loans into a Direct Consolidation Loan to improve the process of getting your loans forgiven. Once the Direct Consolidation Loan is discharged, your Direct Loans and its interest are considered to be paid off.

Conclusion

If you’re a nurse with a high loan balance and you’re thinking about applying for student loan forgiveness, then you have plenty of options. When it comes to student loan forgiveness options for nurses, you may need to review your loan status and potential income to make the best decision about applying for student loan forgiveness. Best of luck in your endeavors!

The post Your Complete Guide to Student Loan Forgiveness for Nurses appeared first on Loan App.

If you are a public servant and have federal student loans, then you will be happy to know about the Public Service Loan Forgiveness Program. This program can help those who work in the government or non-profit jobs. The only problem is that there is no cap on how much debt one must have in order to qualify for this forgiveness program. If you’re like most people with significant levels of debt, it’s difficult to figure out what your options are when it comes to loan repayment plans. This blog post will explore some of the ins and outs of PSLF so that you can make an informed decision about

Who is eligible for PSLF?

While your salary for most public service jobs is typically paid by the government or non-profit organizations, not all public servants are eligible for PSLF. PSLF is available to federal employees and teachers who have student loans under federal Direct Loans that have been in default for the last three years. In addition to federal employees and teachers, PSLF is also available to volunteers, police, and firefighters who work in the public sector. How much debt does PSLF forgive? The forgiveness threshold for PSLF is $60,000. There is no standard income requirement for qualifying for PSLF, but the Education Department does publish guidelines for determining eligibility based on your federal income tax return.

What are the requirements for PSLF?

To be eligible for PSLF, you must work full-time (one year) in the public sector or in non-profit service jobs that directly benefit public welfare. You must be working for a qualifying employer (rather than just working for a government agency that is also exempt). For example, if you work in the non-profit sector or for a government agency, then your employer is also exempt from being required to offer any kind of employer-based repayment plan. You must also be employed in a job that is at least as “high-paying as you could reasonably expect,” even if the specific job is low-paying or not a high-paying job in general. And you must work at least 10 years and earn at least $60,000 or your spouse must earn at least $45,000.

What are some Pros and Cons of PSLF?

Pros of PSLF: You must be working in a public service job and have student loans You are eligible for forgiveness after 120 payments As a result, you may never have to pay back a dime Cons of PSLF: You may be in a lot of debt It’s a somewhat complex program Not all loans qualify How do I Qualify for PSLF? The program is called Public Service Loan Fogiveness (PSLF) because you must work in a public service job for 10 years and have a qualifying loan. The only thing you need to be concerned with is whether or not your loan servicer is participating in PSLF. Many federal loan servicers are not offering this program. It’s up to you to find out if your loan servicer is participating in PSLF. A common misconception is that you must work in a government job in order to get PSLF.

How to Qualify for PSLF

First, let’s review a few details. You can be an employee of a governmental agency or non-profit organization that you work for. What’s more, the IRS has granted some exceptions to the “exemption limit”. This means that if you can provide proof of your employment and school debt, you can be eligible for loan forgiveness if you meet a few criteria.

What are my Options?

First off, you should understand what makes this program so appealing. What are the requirements for PSLF? The Public Service Loan Forgiveness program requires you to have: A certain number of qualifying student loan payments, known as “income-driven repayment” plan payments. You cannot have more than 15 payments, including semiannual payments, while in such a plan. They must have been made within 10 years of starting the PSLF program. What about student loans that are in deferment, forbearance, or in deferment only? If your student loan was placed in deferment, forbearance, or in forbearance only during the program, then you must still make qualifying payments within 10 years of beginning such payments.

Conclusion

Public Service Loan Forgiveness is a great program that people should be aware of and understand before making any big decisions about their student loans. The program has some rules, and a lot of them, but you have a choice to make. If you want to take a good look at the options available to you, then take a look at the 3 characteristics of the PSLF program. Once you have that information, you can make an informed decision about what payment plan would be best for you. If you have questions about paying off student loans or about making higher education a reality for yourself, then you’re in the right place. That’s where financial advisor Leon from We Are Growing can help you navigate your way through a confusing time.

The post Who’s Paying for Public Service Loan Forgiveness? Is There a Cap? appeared first on Loan App.

The American Dream is built on the idea that every citizen should have the opportunity to succeed. This dream can be difficult for people with disabilities, who often struggle to find a career or maintain employment due to their physical and mental limitations. Fortunately, there are programs in place to help these individuals get back into the workforce by providing them loans forgiveness for disability so they can better manage their debt and improve their financial situation. Read more about how this process works below!

Student Loan Forgiveness for Disability

To qualify for disability loan forgiveness, the student must be receiving Social Security Disability Insurance, Supplemental Security Income, Medicaid, or Food Stamps. The student should also be legally blind, or unable to perform the activities of daily living without assistance. When applying for disability loan forgiveness, applicants need to be financially independent in order to qualify for loan forgiveness. This is done by making a contract with the loan lender, proving the person has income, and paying back their loan balance. Once this contract is complete, the student’s loans are forgiven! Student Loan Forgiveness for End-of-Course Tests If you have an outstanding student loan balance, it is possible to have it forgiven due to your high SAT score!

What is a Disability Discharge?

To qualify for a disability discharge, the person needs to have worked full time for the past 3 years. Any income the person may have been able to make previously has been converted into monthly Social Security Disability Insurance benefits (SSDI), as well as any subsequent employment income, for the past 3 years. You must be disabled in order to qualify for the disability discharge, and you must have been unable to work for at least 12 months before applying for the discharge. The Disabled Student Loan Forgiveness Program provides two types of disability discharge. The first, known as the Public Service Loan Forgiveness (PSLF), allows individuals to have their loan debt forgiven after they have made 120 qualifying payments.

How does it work?

Before you go too far into debt, it’s important to look at the student loan forgiveness options available to you. Luckily, there are programs in place to provide loan forgiveness to those who struggle with disabilities that prevents them from working. This means that those who qualify can either continue to pay their loans or choose to pay off their debt under a new plan to help them better manage their finances. While there are different programs for different disabilities, these loans are not eliminated by federal law, so it’s important to consult with an experienced student loan advisor to ensure you qualify. If you are interested in this loan forgiveness program, it’s a good idea to consult an attorney first to ensure your rights and obligations are fully protected.

When is Discharge Available?

There are several programs that allow individuals to receive loan forgiveness for disability. These programs are divided into two categories: Borrower Assistance and Direct Loan for Disability. Borrower Assistance Programs Disability-specific programs are called borrower assistance programs. Such programs are typically offered by nonprofit organizations or other private financial institutions. Some of the major providers of such programs include: Alliance for Rehabilitation Services (ARS) offers loan repayment for employees who suffer from an illness that prevents them from holding a job, as well as employees with a disability that requires regular medical care or other assistance with living independently.

What are the disadvantages?

There are a few reasons why people with disabilities may not be eligible for these programs. First, they might not have enough disability income to qualify for the loan forgiveness programs. But disability income and disability wealth can vary widely and depend on the severity of the disability, the person’s functional ability, and a variety of other factors. The amount of disability income one receives is generally tied to the disability severity. For instance, there is a maximum amount of disability income that would count toward the loan forgiveness program for persons with less severe disabilities. The maximum amount of disability income that would be counted toward the loan forgiveness program for more severe disabilities is more than 50 percent of the individual’s total income.

How to apply for a Discharge

To receive student loan forgiveness, you must have a qualifying disability that could prevent you from making a reasonable effort to enter the workforce. This could be a physical disability that requires a person to have reduced physical ability, or a mental disability that prevents them from achieving the same job goals they could have, had they not had a disability. To receive student loan forgiveness, you must have made 120 qualifying on-time payments toward federal student loans. You can find a full list of qualifying disabilities here.

Conclusion

As a society, we place value on each individual. It’s up to each individual to choose how to use their debt and help out the society they live in. Discharge your debt to a low-income, no-profit organization, or through a discharge loan to pay off your debt and improve your financial situation. Or, sell your debt and keep the money to start your business and become your own boss. Whatever route you choose to take, make sure you’re making the best decision for you!

The post Student Loan Forgiveness for Disability: How to Discharge Debt appeared first on Loan App.

If you are a social worker, there is some good news for you! You may be able to get student loan forgiveness and other options. Social work has been growing in recent years, with more jobs being available than ever before. This can lead to high debt for those who went into the profession because of the lower pay scale. Luckily, there are ways to get help with your student loans if you qualify! We will discuss what they are below and how they could benefit your current situation.

What are the qualifications to be a social worker?

First of all, you must be a full-time student at a Social Work School. This means you will not be teaching part-time while you are enrolled in school. It may mean that you need to take a break from your current job while you attend school to maintain your income and whatnot. It is up to you and your school to find out what these qualifications are for the school you attend. If you are currently working in your field, you will also need to have a social work license in order to be a social worker. You can also get loans to help cover the cost of school. You do not need to have a college degree or even attend a school for the past 2 years in order to qualify for forgiveness. Does anyone else have to do this?

What are the potential benefits of being a social worker?

Job stability Because of the large number of jobs available in social work, job stability is quite high. Many employers hire fewer employees for several years to ensure that their workers have opportunities for advancement and growth. If you are a social worker, you will get an opportunity to advance in your field, receive an increase in pay, and have the opportunity to continue working in the field for years to come. Salary Another benefit that comes with working as a social worker is a much higher salary than what you would get working in many other fields. In addition to a higher salary, the salary is protected by the government as long as you stay in your job.

What is the Public Service Loan Forgiveness Program?

The public service loan forgiveness program is a way for the U.S. Government to help people who work for government and non-profit agencies get out of debt. Your loans will be forgiven after 10 years of repayment, even if you are working in a job that you could not have gotten in the private sector. If you work for a non-profit, be it a hospital, an office of a senator or a place of worship, you could be eligible for the program. For example, you might be working in a psychiatric hospital or you might be a social worker. However, there are rules and regulations and it will be specific to the organization that you are a part of. The loans for your student loan could be forgiven after 10 years regardless of the job you are doing.

How do I apply for the PSLF?

The PSLF program requires you to work 10 years in the field to have the option to apply for a discharge of your loans. This program would not help to discharge federal debt because there are many laws that prevent such an option. The requirement for this program is that you spent at least 10 years working for a non-profit, public service entity, or other governmental agency. This places you under the jurisdiction of the U.S. Department of Education. To be considered for the PSLF program, you will need to file with the agency as the veteran or active duty military service member. Are Social Workers Eligible? Social workers are considered veterans or active duty military service members who have applied for, and been approved for, the PSLF program.

How do I get student loan forgiveness?

There are many opportunities to qualify for student loan forgiveness. For example, teachers, nurses, and other professionals in the medical field have an opportunity to get their loans forgiven. Certain health care professionals are also eligible for additional options. For social workers, it is important to note that this program is in the Individual Supplemental Educational Opportunity Program. The Internal Revenue Service works with various groups to ensure that all graduates of social work programs are eligible for student loan forgiveness. You will need to be able to prove that you hold a degree from a credentialed school, and have a record of outstanding service to the field.

Conclusion

We hope you have enjoyed this article on the different student loan repayment programs that are available for social workers! We want to hear from you if you have any questions at all, so please let us know in the comments below!

The post How Social Workers Can Get Student Loan Forgiveness! appeared first on Loan App.