If you are like most college graduates, you left school with a substantial amount of debt. For those struggling with their student debt, you can have your federal student loans forgiven, canceled, or discharged. It means that you are no longer required to repay some or all of your loans. However, these programs are only available for federal student loans, not for the private ones, and the qualification requirement can be strict and demanding.

In this blog, you will learn more about the different available student forgiveness programs that will help you with all your student loan debts.

Differences Between Forgiveness, Cancellation, and Discharge

The term forgiveness, cancellation, and discharge may mean the same thing, but they are different from one another. If you are no longer required to make payments on your loans due to your job or career path, this is generally called forgiveness or cancellation. When you can no longer need to make payments due to a total or permanent disability, this is called discharge. 

11 Student Loan Forgiveness Programs

 The following programs are a quick review of the types of forgiveness, cancellation, and discharge available for any types of federal student loans:

  • Income-Driven Repayment Forgiveness – It is a good option if you cannot afford your payment under a 10-year installment plan.
  • Public Service Loan Forgiveness – In this program, some federal loan borrowers can have their loans forgiven after 120 monthly loan payments.
  • Teacher Loan Forgiveness – You can qualify if you teach full-time for five consecutive academic years in a low-income elementary or secondary school.
  • Closed School Discharge – If your school closed while you were studying or soon after you withdrew, you might be eligible for this program.
  • Perkins Loan Cancellation and Discharge – In this program, you may be eligible for partial or full loan forgiveness.
  • Total and Permanent Disability Discharge – You can qualify for loan discharge if you become totally and permanently disabled.
  • Discharge Due to Death – In this program, the loan will be discharged when the student loan borrower or student dies.
  • Discharge in Bankruptcy – You may have your student loans discharged during bankruptcy proceedings.
  • Borrower Defense to Repayment – You can qualify here if you attended a school that intentionally misled you or engaged in other misconduct.
  • False Certification Discharge – If your school falsely certified your eligibility to receive a loan, you might qualify for this kind of program.
  • Unpaid Refund Discharge – You may be entitled to this program when your college didn’t return the required funds to your loan servicer when you withdrew from school.

To know more about the said student forgiveness programs stated above or the multiple options in getting out of default, contact your trusted loan servicer today!