If you’re making payments on student loans, then you know just how much of a burden they can be. In 2017, the Federal Government announced it would be introducing new plans to help people pay back their student debt, and if you’re eligible, you could save thousands of dollars in repayment fees! This article will explain how to apply for these programs as well as what qualifications make you eligible to take advantage of them.
Who is eligible?
If you have Direct Loans, FEEL Loans, or Perkins Loans, you may be eligible for full loan forgiveness after making 120 qualifying monthly payments. To qualify, your payments must have been made under a qualifying repayment plan while working full-time for a qualifying employer. Qualifying plans include the Standard Repayment Plan, the Graduated Repayment Plan, and the Income-Based Repayment (IBR) Plan.
If you’re working in public service, look here
If you’re working in public service, you may be eligible for student loan forgiveness through the Public Service Loan Forgiveness (PSLF) program. PSLF forgives the remaining balance on your Direct Loans after you make 120 qualifying monthly payments while working full-time for a qualifying employer. To apply, fill out and submit the PSLF Employment Certification Form annually or whenever you change jobs.
The income requirement – can you make it?
If you’re struggling to make your student loan payments, you may be wondering if you qualify for President Biden’s student loan forgiveness plan. Here’s what you need to know. First, the income requirement. To qualify for the Income-Based Repayment program, which is one of the main ways people can have their student loans forgiven under Biden’s plan, you’ll need to show a household income of less than $50,000 a year and either have debt under $100k or already in deferment or forbearance.
Be sure you meet all the requirements.
If you’re hoping to get your student loans forgiven under President Biden’s new plan, there are a few requirements you’ll need to meet. First, you must be enrolled in an income-driven repayment plan. Second, you must have made at least 20 payments on your loans (which can be any combination of monthly payments or lump sum payments). Third, your remaining loan balance must be equal to or less than what you would have paid off under the Standard Repayment Plan over 10 years.
It’s time to get started. What should you do first?
If you’re hoping to get your student loans forgiven under President Biden’s new plan, there are a few things you need to do. First, check to see if you’re eligible. The plan is only available to federal student loan borrowers who are not currently in default. If you are in default, you’ll need to consolidate your loans into a Direct Consolidation Loan before you can apply for forgiveness.
Once you’ve checked your eligibility and consolidated your loans, if necessary, it’s time to fill out the application.
Check out your options.
If you’re struggling to repay your student loans, you may be considering loan forgiveness. Under President Biden’s new plan, you may be eligible for full student loan forgiveness after 20 years of repayment (or 10 years if you work in public service). Here’s how to apply 1) Submit an application through a participating lender and provide documentation that you have paid all outstanding debt for the past two years; 2) Make 120 on-time monthly payments on time and without any late or missed payments; and 3) File taxes annually with the IRS form 4506-T, Request for Transcript of Tax Return. You can also file federal income tax returns each year to document your progress.
What can you do if you don’t qualify?
There are other options available if you don’t qualify for Biden’s student loan forgiveness plan. You can explore refinancing your loans, consolidating your loans, or enrolling in an income-driven repayment plan. Each option has its own pros and cons, so it’s important to do your research before making a decision. You should also consider speaking with a financial advisor to get personalized advice.