student loan forgiveness, student loan forgiveness update, student loan forgiveness latest update
LET’S LOOK AT SOME OF THE OTHER LOAN RELIEF OPTIONS
As the Supreme Court decides whether or not to block the student loan forgiveness plan, the borrowers—around 26 million of them—who have already applied for relief are wondering whether or not the relief they were promised will be served.
A political science professor, Gregory Caldeira, said “the court’s conservatives have been very aggressive in striking down the decisions of Congress and the president.” Later, she added, “I would not be surprised if the court invalidated the executive order.”
As the plan is already on hold and headed to the Supreme Court, in the meantime, the borrowers should take this time as an opportunity to learn about the other student loan forgiveness plans that already exist across the country, said higher education expert Mark Kantrowitz.
Some other opportunities for student loan forgiveness do exist but are often unknown, such as
INCOME DRIVEN REPAYMENT PLAN | student loan forgiveness
most of the federal student loans are eligible for at least one income-driven repayment plan; in fact, your payment could be as low as zero dollars if your income is quite low.
How does the income-driven repayment plan work? An income-driven repayment plan determines an amount as your student loan payment, which is to be paid by you according to your monthly income and family. Basically, income-driven repayment plans offer four types of plans:
REPAYE Plan: A revised pay as you earn repayment plan is available.
PAYE Plan: Pay as you earn repayment plan
IBR Plan: income-based repayment plan
ICR Plan: income contingent repayment plan
So, low-income borrowers who are eligible for income-driven repayment plans should explore their options.
PUBLIC SERVICE LOAN FORGIVENESS(PSLF)
PUBLIC SERVICE LOAN FORGIVENESS(PSLF) was signed into law by then President George W. Bush in 2007, and the Biden administration recently made a number of improvements to it.
How does PSLF work? It is available to federal students who are eligible after 120 qualifying payments while working for a nonprofit organisation or in public service, such as federal, local, state, or military.
Basically, there are three primary requirements to become eligible for this program:
1. The employer must be a government organisation at any level and a non-profit organisation that provides public services.
2. The loans must be federal direct loans.
3. To be eligible for forgiveness, the employer must have 120 qualifying payments; the payments must be on-time payments in an income-driven repayment plan or the standard repayment plan.
As it is necessary to be eligible for the forgiveness plan, an employer certification form is available to find out whether your job qualifies as public service or not, after which you can easily apply for PSLF. According to the Consumer Financial Protection Bureau, it is estimated that 1 out of 4 American workers could be eligible for this program.
There are various forgiveness plans available for teachers and nurses as well.
These plans and programmes are also mostly unknown and unmet by the borrowers, which makes them miss out on these forgiveness opportunities.
NURSE CORPS LOAN REPAYMENT PROGRAM
under this program, up to 85% of education debt is cancelled.
What makes you eligible for this program?
1. You have to be a licensed registered nurse, nurse practitioner, or nursing faculty member with qualifying nursing debt.
2. You must complete your nursing education at an accredited nursing school in a U.S. state or territory.
3. You have to be a full-time working nurse.
TEACHER LOAN FORGIVENESS PROGRAM
under this program, a teacher who has worked in a low-income school or educational service agency for five consecutive academic years is eligible and can qualify for this forgiveness plan. This programme provides forgiveness of around 17,500 dollars on your direct-subsidised and unsubsidized loans.
What makes you eligible for a teacher loan forgiveness plan?
1. You must not have an outstanding balance or direct loans.
2. You must have been employed as a highly qualified teacher for five consecutive years.
3. You must have been employed at a low-income school or educational service agency.
4. The loan for which you are applying for forgiveness must have been made before the end of those five years of consecutive teaching.
Indian Health Service Loan Repayment Program Under this program, health professionals who give at least two years of service in a Native American community can receive as much as 40,000 dollars.
What makes you eligible for this program?
1. You must be a health professional.
2. You must commit to your two-year service obligation while working in health facilities serving American Indian and Alaska Native communities.
These plans are not limited to just teachers and nurses; in fact, there are programmes for lawyers and other students too, who belong to other fields.
There is this plan for lawyers in Texas who work for specific legal aid programs, i.e., the TEXAS
STUDENT LOAN REPAYMENT ASSISTANCE PROGRAM.
So, accordingly, there are various student loan forgiveness plans or programmes based on their occupation.
And all these plans provide a good amount of forgiveness if you are eligible for the respective program.Students can look into these programmes for education debt forgiveness.
Read this too
A BIG UPDATE ON THE STUDENT LOAN PROGRAM AND WHAT YOU SHOULD KEEP IN MIND DURING THIS TIME
1 thought on “What if Biden’s student loan forgiveness plan falls through?”