Student Loan Debt Forgiveness
Forgiveness programs for student loans are directed and reinforced by the federal government and includes federal loan programs such as Stafford and Perkins loans. Whenever you participate in these financial help programs, a portion of your school loan debt is removed permanently from the original loan amount.
Student loan debt forgiveness programs can be acquired through the direct help of the federal government or through a third party student loan consolidation company. Forgiveness programs help to reduce education loans. However, keep in mind the Internal Revenue Service may consider the forgiven loan amount as taxable income.
Who is eligible for student loan forgiveness?
College loan forgiveness is openly available to those borrowers seeking credit for a number of circumstances. For example, students seeking assistance who are working in a low income area; working for a federal or public service agency; a teacher; medical or legal professional; have volunteered for qualified non-profit organizations; or perhaps serving (or have served) in the military are most often eligible for loan forgiveness. There are several different forgiveness programs and eligibility is always analyzed based on the requirements of each independent program.
The Obama Student Loan Forgiveness Act of 2012 (aka: “the 10/10 loan repayment plan and forgiveness program”) offers relief on Federal Family Education loans (aka: “FFEL” and “Federal Direct loans”). The bill has implemented the 10-10 plan, which allows default repayment plans for student loan borrowers. This change has significantly simplified for borrowers what was previously a complicated and burdensome process for finding a helpful repayment plan for student loans.
Loan Forgiveness Programs are available for borrowers who:
- Volunteer with qualified non-profit organizations
- Work in Education
- Serve in the Military (or served previously)
- Work in the Medical industry
- Work in the Legal Field
- Work for a federal or public agency
Canty Law assists student loan borrowers Nationwide with the process of applying for loan forgiveness; restructuring delinquent or loans in default; refinancing loans to stop or prevent wage and/or tax garnishments and consolidating multiple loans. Call us today for a free consultation at 866-203-5312, or simply contact us online.
We look forward to your call!