The Four Main Types Of Student Loan Forgiveness Programs
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The Four Main Types Of Student Loan Forgiveness Programs

Hey guys, Robert from The College Investor
here. I am excited to talk to you about one of my
favorite things to help people with, and that is student loan forgiveness. Now, student loan forgiveness is everyone’s
Holy Grail if you have a student loan because honestly what is better than having a student
loan, right, than getting it just forgiven and paid off for free? Now that is the dream of anyone that has student
loan debt. Now, if you have student loan debt you might
qualify for a forgiveness program. The federal government estimates that over
50% of student loan borrowers qualify for some type of student loan forgiveness program. Now that’s hard because there are a lot of
different types of student loan forgiveness programs so I want to talk a little bit about
the four big buckets of programs that exist to start with. So, there are four types of student loan forgiveness
programs and let’s break them down right now. First off, you have your generic student loan
forgiveness programs. These are programs that are designed by the
federal government to actually just forgive student loans. The number two type of student loan forgiveness
program is student loan forgiveenss that is part of a student loan repayment program. Now that sounds confusing so let me explain
that a little bit further. There are student loan forgiveness programs
that simply by being on the right repayment plan you can get your loans forgiven. This includes pay as you earn, income-based
repayment, revised pay as your earn, and income-contingent repayment (ICR). All four of those programs, if you still have
a loan balance at the end of the program, any part of that loan that’s left is forgiven. So that’s cool. The third big bucket of student loan forgiveness
programs are what are known as student loan repayment assistance programs. Woo, that’s kind of long. So student loan repayment assistance programs
are different than true forgiveness programs in that these are programs that offer to pay
a portion of your loan back. Maybe they’ll give you $5,000 a year or some
set amount as repayment assistance towards your loans. So while they’re not true forgiveness programs,
they definitely help you eliminate portions of your student loan. And the number four bucket is student loan
cancellation and discharge programs. Now these are programs that allow you to cancel
or discharge your student loan after a set period of time or if certain requirements
are met. So what are the biggest factors that could
help you get to these programs, right? So the number one factor for all student loan
forgiveness program is the biggest thing that matters is your repayment plan. The reason is is the biggest bucket of individuals
that will qualify for student loan forgiveness will get student loan forgiveness because
they are on the “correct” repayment plan. Now these repayment plans are income-based
repayment (IBR), pay as your earn (PAYE), revised pay as your earn (REPAYE), and income-contingent
repayment. Now for all four of these programs your loans
will be forgiven after 20 or 25 years depending on your program and when you took out your
loans. So it’s important to note that you have to
be on these programs for that whole period of time. Now there could be scenarios where you actually
pay off your loan before that 20 or 25-year period in which case you won’t get any forgiveness. The forgiveness only comes when you still
have a remaining loan balance at the end of your repayment time period. So that is the number one factor, your repayment
plan. Your repayment plan also matters because some
other student loan forgiveness programs like public service loan forgiveness require you
to be on the correct repayment plan to be eligible. So if you want to get public service loan
forgiveness because say you’re a teacher or government official, you need to be on one
of these four repayment programs right here, one of these income-based ones that we’re
talking about to qualify for public service loan forgiveness. If you’re not on the correct repayment plan,
say you’re on a graduated or an extended repayment plan, you won’t qualify for public service
loan forgiveness even if you meet the other criteria. So, once gain as you’re thinking about loan
forgiveness and do you qualify, the number one thing that matters is your repayment plan. So number two, what is the number two factor
for student loan forgiveness eligibility? It’s your job, and the reason is the next
biggest bucket of people that will get student loan forgiveness are people that qualify for
public service loan forgiveness which we just talked about at brief. So public service loan forgiveness gets you
student loan forgiveness if you work in the public service and you make 120 qualifying
payments under the right repayment program. So repayment program comes fist and your job
comes second. So the cool thing with public service loan
forgiveness is that there are a lot of different jobs that qualify. Anything in the public service qualifies. Teachers, public health workers, state and
local government workers, police, fire, other first responders, if you’re in the military. There are a lot of jobs that can get you public
service loan forgiveness. At the same time, your job is also important
if you are going to look for student loan repayment assistance. So there are many state-based student loan
repayment assistance programs that you can also get money for your student loans as long
as you work in the correct job or the correct field. And finally, there are companies out there
now that are offering student loan repayment assistance programs as an employee benefit. So if you remember a couple episodes ago,
we talked about companies that are offering student loan repayment assistance as a perk
for working there, and so it’s all based on your job and that is huge. The number three big factor for student loan
forgiveness here is your student loan type. Now that sounds kind of weird because you
might just think a student loan is a student loan is a student loan. Well, this thing is is that there are different
student loan programs that have existed over time. Currently most borrowers are getting direct
student loans. There’s also Perkins loans and FFEL loan,
F-F-E-L loans. So if you are going to qualify for student
loan forgiveness, it’s important that you are on the correct student loan type. This is important because programs like public
service loan forgiveness require you to have direct student loans. If you have another type of loan, you won’t
qualify for public service loan forgiveness. So if you had been making payments, you might
be doing everything you thought right. You might have been making your payments,
you might have been certifying your employment, but if you didn’t have the correct loan type,
you wouldn’t qualify for student loan forgiveness. It’s also important to note that private student
loans typically don’t have any type of forgiveness option associated with them. So if you’re struggling to afford your private
loans, there’s a whole bunch of other options that you can explore. It’s just student loan forgiveness isn’t going
to be one of those options. It’s important to know here that this isn’t
an exhaustive list, right? These are the top three factors that qualify
for student loan forgiveness but there’s a lot of other factors as well. These are just the most common ones. So if you are excited to learn more about
potential student loan forgiveness options, I highly suggest you check out the blog. Go visit
and you can see all of these programs. We also have an awesome tool that allows you
to see every student loan forgiveness program by state and you can see if you qualify for
any in your state as well beyond these federal ones. So I hope you enjoyed this and I look forward
to seeing you on the blog. And until next time, this is Robert and have
a great day.

About James Carlton

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44 thoughts on “The Four Main Types Of Student Loan Forgiveness Programs

  1. Help …Banks you filed for Bankrupy and cried for help,due to what you done and of course the government who is usally affiliated with the executive board and shareholders,,, that is the bankers ceo & executive affiliates right….chase,bank of america,and a few more members who knew before hand when they needed bailouts….m

  2. A technical school got me a loan with out a high school diploma or GED in 2012 is this something that can get loan cancelled?

  3. None of this information qualifies for private loans. I have looked into everything for my husband who got horrible financial advice at 18….there is nothing to get out of a private loan with variable interest unless you literally break up your loans and pay each debt down one at a time in full. this avoids them taking a huge chunk of change and paying themselves first. as for public service loan forgivenes….try again! this is also ONLY FOR FEDERAL LOANS

  4. Will you already have to be in repayment status in order to apply for student loan forgiveness? Also, how do you get on a payment that will help you to qualify for student loan forgiveness?

  5. I am looking for help with my student loans. Where do I start? Is there a website to go to subscribe? Is there a company that you can recommend calling?

  6. Decisions have been made because of NCLB and other issues to change the status of being a Title I school. No Title I school equals no loan forgiveness. Your only choice is to make more money. If a job or employment does not do it, then you have to think of another way. I made a decision to do something and help others to do the same. More information forthcoming at:

  7. I paid back every penny of the student loans that I borrowed. I knew what I was getting myself into when I borrowed the money and did the responsible thing and paid them back. Was it easy? No! If you borrow the money, you should have to pay it back. It's not the tax payers responsibility to pay off your debt.

  8. Is there a school that'll help put my loans back on deferment or forginess I owe 12,000 I got sick shortly after marriage had to stop school moved n forgot to keep them in deferment there has to be n online school lr camlus I live in wv

  9. Also, just be careful out there… There are many school loan forgiveness program scams out there. One of the is called Student Advocates using a company called Equitable Acceptance on billing your so called school loans. You are paying them for a low monthly rate thinking that money is going towards your school loan but it's not.

  10. The Education Department data shows how rare loan forgiveness is

  11. Well i went to a university and it ended up being the worst experience in my entire life. I’m now in a really dark depression and can’t find the motivation to go get a good job. I’ve worked at 3 different places and ended up quitting because of my depression. I don’t think I’m ever gonna go back to college and could really use some loan forgiveness. All I ever received from my college loans is depression and a couple credits.

  12. What if you are poor because you majored in the arts and you make very little money and take care of your niece and nephew?

  13. this provides 0 help and information to help the average person who will watch this. im 100k in student loan debt no degree and im fucked for my entire life and can't get out of this whole. lieterally can't even get help can't even make payments struggling to even eat and i got all this on top of me. i can't move forward in life because im drowing and its like i might as well kill myslef

  14. My campus is closing dec 22nd I have the option of qualifying for school closure but I’d lose all my credits I only need two more semester so I’m not sure what to do

  15. I'm a bit confused. I have the understanding that if I work at a public job, for instance, the state, my student loans are forgiven after making 120 payments. My question is, are my payments I made before landing my state job qualifying as part of 120 payment plan, or does this not start only after i start my state job?

  16. If you graduated and are in debt, please take this survey in regards to student debt! Many thanks

  17. Only 1 of 41 Dems in Congress with student debt said lawmakers should be exempted from loan forgiveness

  18. So I just want to clarify Public Service Loan Forgiveness (PSLF) qualifications are the ff:
    1) have Direct Loans, (2) made 120 qualifying payments on the Direct Loans for which you are seeking forgiveness, and (3) WORKED, and continue to work, full-time at a qualifying employer when you made the qualifying payments for 10 long years. (4) submit an employment certification for each qualifying employer. Now, my question is if I happen to be one of the lucky ones to receive the PSLF, how does it really work? Does the government pay me back all the money I paid for the last 120 months plus interest? or the government will forgive whatever is left off of the loan?
    If the answer is the latter, then paying off my student loan debt as fast as I can and not rely on PSLF would make more sense.

  19. I graduated in 1995. I am now 66, on Social Security. I’m a widow and my student loan company is garnishing my SS!
    I can’t afford this! I’m on a fixed income and battling cancer! What can I do? I have been in default for years now.

  20. I'm glad your making this video. It only makes sense I was skeptical at first. But now looking at what debt I owe and what I need to do. I'm glad this is beneficial for many college students

  21. I have a question when you get a chance. I have been working for a local government for almost 7 years going to school and just recently taking only direct student loans to help pay since I'm going to a very large University for my bs in Mechanical Engineering. I spoke with my loan management and they stated that my time working for the government only begins once I go into repayment. I was thinking about going into repayment right now and making 120 payments to get the balance removed or hopefully this problem gets solved with the next election. I'm currently in my 3rd year at the University. Any suggestions? Thanks

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