If there is no way for your student to get around student loans, there are a few options for students to stop paying back their loans. However, theses methods are not always easy to obtain and are not available for all students.
Student loan forgiveness is when a student is no longer required to pay for their student loans. There are three overarching circumstances that might lead to forgiven loans.
- Career: If your student pursues an education in a public service sector, they can be eligible for loan forgiveness after completing a certain amount of on-time payments and working in that field for a certain amount of years. This option does not apply to private loans. Some student loan forgiveness programs that depend on careers include but are not limited to:
- On-time payments: If your student pays their loan on time, they can be eligible for student loan forgiveness after 20 years. This sounds like a long time but it usually the remaining balance is forgiven after 20 to 25 years. In this option, career field does not play a role and it does not apply to private loans. Some programs depending on on-time payments are:
- Student loan discharge (extraordinary circumstances): This option is usually awarded by a judge so there is not guarantee of acceptance. Student loan discharge applies to both federal and private loans. Extreme circumstances for this discharge include but are not limited to:
- permanent disability
- identity theft
- unauthorized signature of the loan without the student’s knowledge
For more ways a student can obtain student loan forgiveness, click here.
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