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Debt Relief | Apply For Student Loan Forgiveness Application

Understanding Loan Forgiveness

Loan forgiveness is a process by which a lender agrees to cancel all or a portion of a borrower’s outstanding debt. This can be a helpful option for individuals or businesses facing financial hardship or difficulty repaying their loans.

It’s important to note that loan forgiveness is not automatic and borrowers must typically apply for it and provide documentation to show that they meet the program’s requirements.

Differences Between Forgiveness, Cancellation, and Discharge

It is important to note that forgiveness, cancellation, and discharge all have different qualifications and implications. Forgiveness or cancellation is usually a one-time event, while discharge is a legal process that happens through the court. Furthermore, forgiven or canceled debt can be considered as income and therefore be taxed, whereas discharge debt is typically not considered income and is not taxed.

Types of Forgiveness, Cancellation, and Discharge

Forgiveness, cancellation, and discharge are all terms that are used in the context of debt and financial obligations. Each of these terms can take on different forms, depending on the specific circumstances and the type of debt involved.

Teacher Loan Forgiveness

Available for Direct Loans and FFEL Program loans

Are you a full-time teacher in an elementary, secondary, or educational service agency that serves low-income students? Then you might be eligible to have up to $17,500 of your Direct Loan or FFEL Program loans forgiven! To qualify, you must have been employed as a teacher at the same school for five consecutive academic years.

Note: It is important to note that Teacher Loan Forgiveness and Public Service Loan Forgiveness do not overlap. In other words, an individual cannot receive a benefit for the same qualifying payments or period of service through both programs.

Closed School Discharge

Closed School Discharge is a type of student loan forgiveness that is available to borrowers whose school closed while they were enrolled, or who left school within 120 days of the closure. This type of discharge applies to federal student loans, including Direct Loans and Federal Family Education Loans (FFEL).

Perkins Loan Cancellation and Discharge

Available only for Federal Perkins Loans

A Perkins Loan Cancellation or Discharge may be achievable depending on your particular position of employment or volunteering service. This encompasses the Teacher Cancellation initiative as well. It is possible to have all or part of the loan eliminated pursuant to these conditions.

Total and Permanent Disability Discharge

Available for Direct Loans, FFEL Program loans, and Perkins Loans

Total and Permanent Disability (TPD) Discharge is a type of student loan forgiveness that is available to borrowers who are unable to work and earn money due to a permanent disability. This type of discharge applies to federal student loans, including Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans.

Discharge Due to Death

Available for Direct Loans, FFEL Program loans, and Perkins Loans

Federal student loans may be discharged if the borrower dies or if the person on whose behalf a parent took out a PLUS loan passes away.

Discharge in Bankruptcy (in rare cases)

Available for Direct Loans, FFEL Program loans, and Perkins Loans

Bankruptcy does not automatically erase your student loan debt, but in some cases a court may cancel all or part of the obligation if repayment would cause extreme hardship for you.

Borrower Defense to Repayment

If you are a borrower who has been forced to leave one school and transfer credits to another, or if your college failed for any reason (such as through closure) before completing your program of study, the federal government may discharge the loans that helped pay for it. The eligibility requirements for a borrower defense to repayment discharge vary depending on when you received your loan.

False Certification Discharge

Available for Direct Loans and FFEL Program loans

It is possible that your federal student loan could be discharged due to fraudulent certification from the school. In other words, should it be determined that the institution incorrectly certified your eligibility for a loan, then discharge of said loan may become an option.

Unpaid Refund Discharge

If you withdrew from school and the school didn’t make a required return of loan funds to the loan service and your loans are eligible for discharge in that situation—you might be able to get part or all of your federal student loans discharged.

Forgery Discharge

Available for Direct Loans, as well as FFEL Program loans and Federal Perkins Loans held by the U.S. Department of Education.

Forgery is creating or altering a written document with the intent to defraud. Identity theft often involves forgery, in which case the victim is both an identity thief and a victim of fraud.

If you believe that someone forged your signature to create a fraud student loan, then you might be eligible for having the debt discharged.

Parent loan Eligibility Criteria

Eligibility for Parent Borrowers

When it comes to paying for college, one option that many families consider is a parent loan. These loans are designed for parents (or other legal guardians) of undergraduate students, and can help cover the cost of tuition, fees, room and board, and other expenses. However, not all parents will qualify for these loans, so it’s important to understand the eligibility requirements before you apply.

How to Apply For Forgiveness

Contact your loan service if you think you qualify; for a Perkins Loan, this will be the school that made the loan or the designated service.

Loan Payments During the Application Review Period

Some types of loan forgiveness, cancellation or discharge require that you continue to make payments during the application review period. However, if this is the case for your particular type of relief then you should check with your loan servicer to find out whether they will accept payment from a debtor while his/her debt has been discharged

My Loan Application Was Approved

There is no one-size-fits-all answer to this question, as the approval of a parent loan application will depend on a variety of factors, including your credit history, income, and the specific loan program you are applying for. However, here are a few tips that may help increase your chances of getting approved for a parent loan.

My Loan Application Was Denied

If your loan application was denied, it can be disappointing and frustrating, but it’s important to remember that it’s not the end of the road.

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