Student loan forgiveness is a hot topic for many graduates struggling to pay off their loans. With the average student loan debt at over $30,000, it’s no surprise that many borrowers are looking for ways to have their loans forgiven or discharged.
Many politicians over the last “forever” years have been promising student loan forgiveness to pull in the younger vote and promise relief to parents paying on the PLUS loan program or their own student loans, but that’s easier said than done.
Hold on, it is going to be a bumpy road!
Who Gets Student Loan Forgiveness?
If you’re struggling to pay off your student loans, you may be eligible for debt relief through a new program announced in August 2022 by the government. Keep in mind, only federal student loans (loans directly from the government) are eligible for relief in this program. Make sure to determine what type of student loans you have prior to moving forward in seeking student loan forgiveness.
To qualify, your annual income must have fallen below certain thresholds:
- $125,000 for individuals
- $250,000 for married couples or heads of households
If you received a Pell Grant while in college and meet the income requirements, you could be eligible for up to $20,000 in debt relief. If you didn’t receive a Pell Grant but still meet the income requirements, you may be eligible for up to $10,000 in debt relief.
If you think you may qualify, it’s worth looking into this program as a way to potentially get some much-needed financial relief.
How Do I Apply for Student Loan Forgiveness?
While some borrowers may be eligible to receive relief without applying, the government recommends you fill out the Student Loan Debt Relief Application or subscribe to updates if they are currently not accepting applications.
Student Loan Forgiveness Update
As of 1/6/2023, the current student loan forgiveness plan is halted and pending a ruling by the Supreme Court. While the orders are seeking to be overturned, there are dates and deadlines that you should be aware of.
Current State of Affairs
In summary, student loan forgiveness can be a great option for graduates who are struggling to repay their loans. However, it’s important to understand:
- Forgiveness is not automatic.
- There are qualifications and requirements that must be met.
- The Student Loan Debt Relief Program is not final.
By staying abreast with the right information and guidance, student loan forgiveness can be a powerful option to help many borrowers achieve financial freedom.
Our friends at College Aid Direct are in fact one of the honest companies out there working to help nurses across the country get out of student debt. They have over 30 years of experience in the industry and have helped thousands of students lower their payments and survive repayment after graduation.
If you have questions or concerns about how to navigate your student loan debt we recommend you reach out to College Aid Direct here. They’ll take good care of you.