Michael Berlau owns and operates College Funding and Planning, an organization that helps families understand how to pay for secondary education. A dedicated advocate for his clients, Michael Berlau offers insights into potential student loan forgiveness programs.
Although half of current college students believe that they can secure forgiveness for their student loans, a student must meet certain criteria for this to happen. One option is available under the Public Service Loan Forgiveness Program, which is obtainable by those who work full-time for the government or a nonprofit organization for a full decade. Available to such professionals as law enforcement personnel, public health workers, and early childhood educators, it becomes an option after the candidate's 120th student loan payment.
Direct and Stafford loans also offer a dedicated loan forgiveness plan for teachers. Such plans forgive up to $17,500 for professional educators who work in low-income public schools for five years or more. However, those with larger loan balances or who intend to work in a qualifying school for 15 years or more may benefit more from applying for Public Service Loan Forgiveness.
For individuals in other fields, particularly those whose compensation packages make it difficult to repay student loan balances, income-driven repayment plans may offer alternative forgiveness options. Although these may charge higher interest rates than a traditional repayment plan, they adjust payments based on the candidate's ability to pay. They also repay remaining balances after 20 to 25 years, though this forgiveness is subject to income tax.
