(DailyProsper.com) – Having trouble making your student loan payments? You may be entitled to loan forgiveness. It’s different from repayment assistance or a moratorium, but you have to qualify. Check out these actual programs that forgive federal student loans and see if any of them apply to you.
Get Forgiveness Based on Your Income After Taxes
If you received a student loan before July 1, 2014, the IBR formulates your payments below 15% of your income after taxes. It also forgives the remaining balance after 25 years. Loans issued after that date can’t have payments that go above 10% of your income, but the balance will be forgiven after 20 years.
Pay as You Earn
Another great program to check out is Pay as You Earn. You’ll contribute roughly 10% of your pre-tax income with REPAYE. Most loan holders qualify, and there are zero date restrictions. This program also forgives remaining balances after 20 years.
No Harsh Income Requirements
Looking for help without strict rules? There are no initial income requirements for an ICR, and anyone qualifies regardless of how much they make. Payments are 20% of your disposable income or your current repayment plan adjusted to your income, whichever is lower. The remaining loan note is forgiven after 25 years. If you work in the public sector, loans are forgiven in 10 years given you’ve made at least 120 payments.
Found yourself disabled since taking out your student loans? You may qualify for full loan forgiveness. Nelnet works with the Education Department to determine eligibility. You’ll need a notice from the VA, Social Security or your physician supporting your claim.
Don’t allow student loans to cripple your finances. Give yourself a promising start so you can focus on your future. See what steps you can take to work toward your student loan forgiveness.
~Here’s to Your Success!
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