Do you qualify for loan forgiveness or lower monthly payments?
CALL US TO FIND OUT! 800-820-8128

5 Step guide to become debt-free. Learn about student loan forgiveness options in 2021

student loan forgiveness

Today, Americans have nearly $16 trillion debt in total which includes mortgage loans, credit cards debt, student loans, etc. Just near to 45 million people have student loan credits. It seems like there is no way out of the debt. It is too early to agree with that because there are some strategies you could become debt-free. Yes, I confess it sounds impossible in 2019, but it could be real. In this article, we will lead you on how to get rid of your massive student loan debts. You are most probably familiar with student loan forgiveness or discharge programs. Although the vast majority of people don’t know too much about how to use these programs, it is estimated that up to 50% of student loan borrowers may qualify for any forgiveness programs. In this article, you will find the strategies to wipe out your debts through great student loan forgiveness or discharge programs.

How to get out of debts?

student loan forgiveness

You can repay your student loans within the regular period of 15 years. However, you can finish your debts for a shorter time. Here are some strategies you are going to follow to get out of debts in a short period.


It would be better always to negotiate the institution of loan collector. It is because most of the student loan collection agencies are inclined to arrange to receive payment with fixed rates. You can negotiate to make your payments based on a special rearranged repayment plan which is convenient for your financial situation. On the other hand, in this case, there is one more thing you should keep in your mind. Remember that, getting student loan forgiveness to boost your income and that is why it is subjected to income tax. From this view, it would be better to consult with financial or tax adviser before rearranging the repayment plan.

Student loan consolidation

Besides, to negotiate with your student loan owner, another alternative to deal with debts is the consolidation of student loans. It will be quite helpful, especially if you are struggling with high-rate of student loans. You can settle an agreement with your loan collection agency to arrange a repayment plan of monthly payments with lower rates. In such a case, it is your advantage to win some amount in both the short and long term. Most of the debt collection agencies agree with this strategy.

Budget adjustment

Every day we spent quite enough amount of money for the things we do not need. If you want to get the freedom of debts, you are going to review your budget spending plan again. Highlight your fixed expenditures, and find out where you can save money. There is a massive number of areas to reduce your expenses such as utility bill, gas for your car, and even you can keep a bunch of money from entertainment costs. Also though it does not come to mind at the first trial, you can check the “invisible” expenditure list including subscription and membership, cable costs, credit cards, and bank charges, insurance costs, etc.

How to get rid of student loan debts?

student loan forgiveness

There are numerous types of student forgiveness programs which are the best tools to get rid of your outstanding student loan debts. Each of them has particular requirements for eligibility. I have to admit that, applying for forgiveness program and getting approvement is not a natural process as sound. However, when you get lucky, you will hit a huge shot. Regardless of dealing with some sorts of documents, files or legal application procedure, it worth to apply. You would not mind receiving thousands of dollars student loan discharge, and even it is possible, some reimbursement for the amount you have already paid on your student loan debts. In the following section of this post, we have listed the most popular types of student loan forgiveness programs. We will guide you on which type is the most convenient for you, what is the eligibility requirements, and how to apply.

Public Service Loan Forgiveness program (PSLF)

Public Service Loan Forgiveness is created to assist people who work in the public sector such as public school teachers and stuff, public work volunteers, government employees, non-profit organizations workers, etc. This program provides 100% forgiveness. The indifference with ordinary 20 or 25 years forgiveness, you may be eligible for Public Service Loan Forgiveness after making ten years or 120 regular payments on your student loans. Additionally, PSLF offers full forgiveness. Thus there is no cap on the amount you are going to receive.

  • The primary eligibility conditions are following if you are volunteer or work for:
  • A non-profit, tax-exempt organization
  • A government organization ( no matter what level)
  • Full-time worker
  • Non-profit organizations which generate qualifying public services

Teacher Loan Forgiveness Program (TLF)

student loan forgiveness

Teacher Loan Forgiveness is considered one of the most beneficial student loan forgiveness programs. This program allows qualifying teachers to reduce their loans an the amount from $5000 up to $17000 which is exempt from tax. By depending on the situation, some teachers could receive the full amount of forgiveness which eliminate 100% of their loans. The main requirements for qualifying for Teacher Loan Forgiveness are:

  • To work as a teacher at least five continuous years which one of these years must be after 1997.
  • Any teacher who works at elementary school, secondary school or any education agency who provide service for low -income families’ students.

It worth to note that, teachers could qualify for both PSLF and TLF programs at the same time.

Closed School Loan Discharge Program

This type is also one of the most well-known student relief programs. Closed School Loan Discharge is created to help people who were not able to finish his/her degree programs due to the school shut down. Anyone who attended the school which closed before he graduated and received a diploma may be eligible for Closed School Loan Discharge. One more benefit that the program offers is providing reimbursement on the amount you have already paid for enrolling the courses, besides student loan forgiveness.

Student Loan Disability Discharge

student loan forgiveness

Student Loan Disability Discharge program is created in the purpose of assisting people who have lost his physical ability to work. If you are unable to work and find it difficult to repay your loans, you are most probably eligible for Total and Permanent Disability Discharge Program.

Through this program, you could receive a full amount of student loan forgiveness. Additionally, the most beautiful side is any amount forgiven is free from taxes, and it means that you still may qualify for government programs such as social security.

To receive Total and Permanent Disability Discharge, you are going to need a document at least one of these organizations such as the Veterans Affairs Office, the Social Security Office, or your physician.

Of course, there is a wide range of student loan forgiveness programs, and these are some of them. If you think you are not eligible for any of them, you can check the full list of all programs. Applying student loan discharge may take a long time and require detailed research. If you need any information or help with student loans, please do not hesitate to call our helpline.