July 5, 2022

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How To Get Student Loan Forgiveness If You Don’t Work In Public Service

Here’s how to get student loan forgiveness if you don’t work in public service.

Here’s what you need to know.

Student Loans

President Joe Biden announced major changes to student loan forgiveness for public servants this month, which will help more student loan borrowers get student loan cancellation. These changes are a game changer for student loan forgiveness — and could help shape the future of student loans for other borrowers too. What’s the latest on wide-scale student loan cancellation? The latest on mass student loan forgiveness is there likely won’t be any, at least in the near-term. Student loan relief due to the Covid-19 pandemic is ending January 31, 2022, and the Biden administration has said repeatedly that there will be no more extensions for temporary student loan forbearance. So, do you qualify for student loan forgiveness? (Here’s who qualifies for student loan forgiveness right now). A common complaint is “But, I don’t work in public service.” Well, here’s how to get student loan forgiveness, even if you don’t work in public service:

1. This student loan repayment plan gets you student loan forgiveness

Student loan borrowers often ask for student loan cancellation, as if it doesn’t already exist. However, this student loan repayment plan can get you automatic student loan cancellation, and most student loan borrowers qualify. (Student loan forgiveness won’t be available for everyone, but this plan is available now) No, it won’t be immediate student loan cancellation, and it will take some patience. It’s called an income-driven repayment plan, and it’s available for federal student loans only. Income-driven repayment plans are best for student loan borrowers who are struggling financially or can’t afford their monthly payments. There are four different student loan payments plans from which to choose: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) and Income-Contingent (ICR). The size of your student loan payment depends on income, family size and state of residence, and it’s possible that your monthly student loan payment can be as low as $0. (Student loan forgiveness won’t be available to these borrowers). You can get student loan forgiveness after 20 years (undergraduate student loans) or 25 years (graduate student loans). Borrowers who participate will get federal student loan cancellation of their remaining student loan balance, but may owe income tax on the amount forgiven. That said, Congress made the student loan forgiveness tax-free through December 31, 2025.