The Ultimate Guide To Student Loan Forgiveness

There are various student loan forgiveness programs ranging from Public Service Loan Forgiveness to Teacher Loan Forgiveness.

The Ultimate Guide To Student Loan Forgiveness can help make student loan forgiveness simpler. If you're looking for student loan forgiveness, you have several options. The type of student loan forgiveness may depend on whether you have a Direct Loan, a FFEL Program Loan or a Federal Perkins Loan. Since each type of student loan has different forgiveness, cancellation and discharge options, it is important to understand the types of loans you have before making any assumptions.

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December 2024

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Fixed APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Fixed APR means that your interest rate will always stay the same. Even if interest rates change, your interest rate or monthly payment will not. Fixed APR includes a 0.25% discount when you enroll in autopay.

Variable APR ?APR, or Annual Percentage Rate, is the price you pay to borrow money. Variable APR means that your interest rate can fluctuate over time, which can increase or decrease your monthly student loan payment. Typically, a variable-rate loan has a lower introductory rate than a fixed-loan rate loan. Variable APR includes a 0.25% discount when you enroll in autopay.

APR

4.49% - 9.99%

5.99% - 9.99%

4.49% - 9.99%

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on SoFi's website

Overview

Variable APR:

5.99% - 9.99%

Fixed APR:

4.49% - 9.99%

Minimum Credit Score:

650

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000 ($10,000 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

SoFi Student Loan Refinancing Review

3.95% - 9.74%

5.89% - 9.74%

3.95% - 9.74%

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View Details

on Earnest's website

Overview

Variable APR:

5.89% - 9.74%

Fixed APR:

3.95% - 9.74%

Minimum Credit Score:

650

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

No

Review:

Earnest Student Loan Refinancing Review

5.19% - 9.74%

5.99% - 9.74%

5.19% - 9.74%

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on NaviRefi's website

Overview

Variable APR:

5.99% - 9.74%

Fixed APR:

5.19% - 9.74%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,001 ($10,001 in CA)

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5-20 years

Borrower Residency:

All States except NV

Hardship Deferment:

Yes

Co-signer Option:

No

Review:

NaviRefi Student Loan Refinancing Review

4.88% - 8.44%

4.86% - 8.49%

4.86% - 8.49%

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on ELFI's website

Overview

Variable APR:

4.86% - 8.49%

Fixed APR:

4.88% - 8.44%

Minimum Credit Score:

680

Minimum Income:

$35,000

Fees:

None

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

ELFI Student Loan Refinancing Review

4.84% - 9.99%

5.89% - 9.99%

4.84% - 9.99%

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View Details

on Splash's website

Overview

Variable APR:

5.89% - 9.99%

Fixed APR:

4.84% - 9.99%

Minimum Credit Score:

640

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5 – 20 years

Borrower Residency:

All states

Hardship Deferment:

Varies

Co-signer Option:

No

Review:

Splash Financial Student Loan Refinancing Review

5.89% - 10.98%

7.02% - 12.44%

5.89% - 12.44%

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View Details

on Citizens' website

Overview

Variable APR:

7.02% - 12.44%

Fixed APR:

5.89% - 10.98%

Minimum Credit Score:

Not disclosed

Minimum Income:

$24,000

Fees:

No prepayment or origination fees

Minimum Loan Amount:

$10,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Citizens Student Loan Refinancing Review

4.99% - 8.90%

5.29% - 9.20%

4.99% - 9.20%

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View Details

on Laurel Road's website

Overview

Variable APR:

5.29% - 9.20%

Fixed APR:

4.99% - 8.90%

Minimum Credit Score:

680

Minimum Income:

None

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All States

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

Laurel Road Student Loan Refinancing Review

5.49% - 9.75%

5.53% - 12.18%

5.49% - 12.18%

Get My Rate

View Details

on LendKey's website

Overview

Variable APR:

5.53% - 12.18%

Fixed APR:

5.49% - 9.75%

Minimum Credit Score:

680

Minimum Income:

$24,000

Fees:

None

Minimum Loan Amount:

$5,000

Details

Eligible Loans:

Private & Federal

Eligible Degrees:

Undergraduate & Graduate

Loan Terms:

5, 7, 10, 15, 20 years

Borrower Residency:

All states, except ME, ND, NV, RI, WV

Hardship Deferment:

Yes

Co-signer Option:

Yes

Review:

LendKey Student Loan Refinancing Review

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Disclosures: SoFi | Earnest | NaviRefi | ELFI | Splash Financial | Citizens | Laurel Road | LendKey

Teacher Student Loan Forgiveness

Teachers are public servants who are often underpaid, but who create significant positive impact in our communities.

To give back to teaches for their selfless service to others, the federal government created a teacher student loan forgiveness program. The goal of the Teacher Student Loan Forgiveness Program to encourage promising individuals to enter into the teaching profession and to give back to their communities in low income schools.

What are eligibility requirements for Teacher Student Loan Forgiveness?

You must be a full-time teacher for five consecutive years in a designated elementary or secondary school or educational service agency that serves students from low income families. Also, your loans must have originated after October 1, 1998.

Which loans are eligible for Teacher Loan Forgiveness?

Federal direct loans and Stafford Loans are eligible for teacher loan forgiveness, whereas Parent PLUS loans are not eligible.

How much of your student loan will be forgiven?

If you are eligible, you can have up to $5,000 forgiven (up to $17,500 for elementary/secondary special education teachers and secondary math and science teachers). If you have a direct consolidation loan or FFEL consolidation loan, then only the portion used to repay the original Direct or FFEL Loan will qualify for student loan forgiveness.

How do I apply for teacher loan forgiveness?

You can apply by using the Teacher Loan Forgiveness Application.

Public Service Loan Forgiveness

What Is Public Service Loan Forgiveness?

Public Service Loan Forgiveness forgives federal student loans for borrowers who are employed full-time in an eligible state, local or federal public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments after October 1, 2007. This equates to 10 years of student loan payments.

The 10 years of student loan payments can be made under several qualifying plans:

• Standard Repayment
• Income-Based Repayment (IBR)
• Pay As You Earn Repayment (PAYE)
• Revised Pay As You Earn (REPAYE)
• Income-Contingent Repayment (ICR)

Most borrowers prefer an income-based repayment plan because they can lower their monthly student loan repayment, thereby taking full advantage of the Public Service Loan Forgiveness by having a larger amount of their student loan forgiven. To qualify for public service loan forgiveness, you must make at least a majority of your student loan payments while enrolled in an income-driven repayment plan such as IBR, PAYE, REPAYE and ICR.

What are eligibility requirements for Public Loan Forgiveness?

To be eligible, a borrower must either have a direct loan or a consolidated student loan, including loans under Family Federal Education Loans (FFEL), which existed before direct loans were introduced. To remain eligible for Public Service Loan Forgiveness, FFEL (as well as Perkins Loans) must be consolidated under direct loans. You do not have to be employed at the same employer continuously for 10 years.

Which types of student loans are eligible for the Public Service Loan Forgiveness Program?

Direct loans or a consolidated student loan are eligible. This includes:

• Federal Direct Subsidized Stafford/Direct Loans
• Federal Direct Unsubsidized Stafford/Direct Loans
• Federal Direct Consolidations Loans
• Federal Direct PLUS Loans (for parents and graduate and professional students)

How much of my direct federal student loan can be forgiven through Public Service Loan Forgiveness?

100% of your student loan can be forgiven. There is no limit as there is with Teacher Student Loan Forgiveness.

How can I apply for Public Service Loan Forgiveness Program?

You will need to submit the Public Service Loan Forgiveness Employment Certification Form. Then, you should submit the form to FedLoan Servicing. FedLoan Servicing will inform you if you are eligible, how many qualifying student loan payments you have made, and how many qualifying student loan payments remain for you to qualify for Public Service Loan Forgiveness.

The chart below summarizes other key types of student loan forgiveness and student loan cancellations, including the reason for discharge and the amount of the student loan that can be discharged.

Federal Perkins Student Loan Cancellation For Teachers

Who is eligible for a Federal Perkins Student Loan Cancellation Program? How much of your student loan can be forgiven?

Federal Perkins student loans can be forgiven up to 100% for teachers who work full-time at a qualifying low income public or non-profit elementary or secondary school in subject areas such as math, science and special education for a period of five years.

How is the student loan cancellation applied over the five years?

Year 1: 15% of your student loan

Year 2: 15% of your student loan

Year 3: 20% of your student loan

Year 4: 20% of your student loan

Year 5: 30% of your student loan

How do you apply for federal Perkins student loan cancellation if you are an eligible teacher?

You should contact the school from which you borrowed your loan and the school will determine your eligibility under the program.

Student Loan Forgiveness: Summary Thoughts

It is important to understand your options with respect to student loan forgiveness. In addition to student loan forgiveness, you can consider the various student loan repayment plans, or even deferral or forbearance.Alternatively, you can look to federal loan consolidation or private student loan refinance.

Related Posts

7 Ways To Lower Your Student Loan Interest Rate

How To Refinance Federal Student Loans

How To Get Parent PLUS Loan Forgiveness