There are several types of student loans that are being forgiven, depending on the specific program or policy. Here are some examples:
- Biden-Harris Administrations Student Debt Relief Plan: This plan includes loan forgiveness of up to $20,000.
- Death of borrower or student: Federal student loans will be discharged if the borrower or the student on whose behalf a PLUS loan was taken out dies.
- Public Service Loan Forgiveness (PSLF): This program allows qualifying federal student loans to be forgiven after 120 qualifying payments (10 years), while working for a qualifying public service employer. Only federal Direct Loans can be forgiven through PSLF. If you have other federal student loans such as Federal Family Education Loans (FFEL) or Perkins Loans you may be able to qualify for PSLF by consolidating into a new federal Direct Consolidation Loan.
- Income-Driven Repayment Plans: Borrowers are eligible for forgiveness if they have accumulated the equivalent of either 20 or 25 years of qualifying months depending on their specific plan and loan type.
- Forgiveness after 10 years of payments: Borrowers with original loan balances of $12,000 or less may have their loan balances forgiven after 10 years of payments.
Its important to note that eligibility for loan forgiveness can depend on various factors, such as the type of loan, repayment plan, and employment status. Its recommended to check with the Department of Education or a qualified financial advisor for more information on specific loan forgiveness programs.
