Currently, 45 million people are carrying student loan debt, adding up to about $1.7 trillion total. Many borrowers might feel like they\u2019re drowning; some can\u2019t imagine a future where all their debt is paid off. <\/p>\n
Fortunately, there are some viable methods to have student loans forgiven so you\u2019re no longer left with debt looming over your life. Read on to find out if you meet the criteria to have your student loans discharged. <\/p>\n
Find Out: <\/em><\/strong>These Elite Colleges Went Virtual \u2014 But Raised Tuition Anyway<\/em><\/strong> When standard payment plans are set up for federal student loans, most of them are figured over the course of 10 years. However, if the monthly amount to pay back the student loan over 10 years is too great, you can apply for an income-driven repayment plan. These plans structure repayment over 20-25 years, and the most taken out of your monthly income would be 15%. If you\u2019ve made all of your payments, the rest of the loan is forgiven after the predetermined pay period.<\/p>\n Say your plan is set up for 10% of your monthly take-home pay for 20 years starting in 2021. If you\u2019ve made every payment come 2041, no matter how much is left on your loan, you won\u2019t have to pay it. You do have to declare how much you make at the start of every year, so if you start to make more money, your monthly payments will go up, but it won\u2019t affect the other terms of the loan. <\/p>\n Check Out: <\/em><\/strong>The World\u2019s Most In-Demand Jobs That Don\u2019t Require a Degree<\/em><\/strong><\/p>\n Depending on your line of work, you might be able to have your Direct Loans forgiven. If you\u2019re employed by the government, work for a nonprofit, or serve in the military and are already enrolled in an income-driven repayment plan, you can apply for public service loan forgiveness. This requires that you\u2019ve made 120 qualifying payments already, and that you\u2019re working full-time for your employer. <\/p>\n Important: <\/em><\/strong>15 College Degrees That Won\u2019t Make You Money<\/em><\/strong><\/p>\n Teaching is another occupation that can potentially save you money on your loans. In order to qualify, you must have a bachelor\u2019s degree and full state certification and teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency. If you meet all the requirements, you can have up to $17,500 of your Direct Loan or Federal Family Education Loan forgiven. If you don\u2019t meet all of these stipulations, you might still be eligible to get up to $5,000 forgiven, so it\u2019s worth looking into.<\/p>\n Whoa: <\/em><\/strong>20 Jobs Where You Can Make $60,000 Out of College<\/em><\/strong><\/p>\n If the school you attended closed while you were enrolled, were on approved leave, or within 120-180 days of your withdrawing (depending on the year you were granted a loan), you\u2019ll be provided with an application to have the loan discharged, according to the Federal Student Aid website. Some loans may also be subject to an automatic discharge based on when funds were disbursed and depending on whether a student has attended another institution that offers federal loans within three years of the school closure. <\/p>\n Choosing a Career? <\/em><\/strong>High-Paying Jobs at Apple, Facebook and Google That Don\u2019t Require a Degree<\/em><\/strong><\/p>\n If you have a Perkins loan, you could be eligible for 100% forgiveness, depending on your job. If you have worked full-time in a public or nonprofit elementary or secondary school system as a teacher who serves mostly students from low-income families, a special education teacher or a teacher in a field that is determined to have a shortage of qualified teachers, you can file for loan forgiveness.<\/p>\n No Commute: <\/em><\/strong>40 Legit Companies That Will Pay You To Work From Home<\/em><\/strong><\/p>\n Certain loans are forgiven if you\u2019re found to be permanently and totally disabled. Documentation from the U.S. Department of Veterans Affairs, the Social Security Administration or a doctor is required to file for the discharge.<\/p>\n For more information on eligibility information and how to apply for loan forgiveness, visit studentaid.gov.<\/p>\n More From GOBankingRates<\/em><\/strong><\/p>\n
Learn More: <\/em><\/strong>Most and Least Educated Cities in America<\/em><\/strong><\/p>\nIncome-Driven Repayment<\/h2>\n
Public Service Loan Forgiveness<\/h2>\n
Teacher Loan Forgiveness<\/h2>\n
Closed School Discharge<\/h2>\n
Perkins Loans<\/h2>\n
Total and Permanent Disability Discharge<\/h2>\n