How to Get Student Loan Forgiveness (Quick Guide)
3 months ago Paul Paquin 0
Thousands of students across the nation could potentially get their student loan balances forgiven, but unfortunately, it will never happen for them because they forgot to fill out a form or because they checked the wrong box on the application 10-years ago when they consolidated. Today’s infographic teaches you exactly what you need to do to ensure that you’re eligible for student loan forgiveness after making all of your qualified payments and won’t get rejected due to some minor detail.
Firstly, students need to consolidate their federal student loans at StudentLoans.Gov.
Secondly, students need to get approved for an income-driven repayment plan that offers loan forgiveness. Not all of the government student loan repayment plans offer loan forgiveness. For example, the Standard and Extended Graduated plans don’t offer student loan forgiveness. And make sure to get on the income-driven repayment plan that offers you the lowest monthly payment.
How to maximize the amount of loan forgiveness
To maximize the amount of student loan forgiveness that you eventually get, always pick the smallest monthly payment that’s available. If you have $100,000 in student loan debt, and pay only $80 per month over the next 20-years, in the end, you will have only paid $19,200. You could then be eligible for over $80,000 in loan forgiveness.
Thirdly, every year you need to get recertified for that plan or you can switch to another “qualified” income-driven repayment plan if your income changed, but if you forget to recertify you would get kicked out of the income-driven repayment plan and your monthly payments would no longer be considered “qualified” and wouldn’t count towards loan forgiveness.
Fourthly, for students that work in a public service job, such as teachers and police officers, these students must submit the Public Service Employment Certification Form to FedLoan Servicing prior to starting their income-driven repayment plan and then again after making all of their qualified monthly payments to prove that they’ve been working for a public service job all along.
The creators of this infographic are Certified by the Association for Student Loan Relief and have successfully assisted hundreds’ of students’ through the process of consolidating and getting on the path to student loan forgiveness.
By Paul Paquin
Golden Financial Services, https://goldenfs.org, 11/24/2017