Student loans can play a very important role in your education, your career, and your overall earning power. Because life is difficult to predict, however, the debt load associated with student loans can prove difficult to bear. In some instances, loan forgiveness is a possibility that is well worth exploring. An experienced debt relief attorney can help you better understand your best options in relation to the student loan debt you carry.
The Basics
There are highly specific circumstances in which federal student loan debt can be forgiven, discharged, or canceled. Each of these terms has essentially the same meaning, which is that you will not be required to pay back some or all of the loan in question. The most common form of student loan forgiveness is the Public Service Loan Forgiveness Program (PSLF), which forgives all remaining debt after working for a government agency or qualified nonprofit and making steady loan payments for ten years.
Various Qualification Mechanisms for Loan Forgiveness
There are a range of qualifications that afford student loan forgiveness at various levels other than PSLF.
Teachers
Teacher loan forgiveness of up to $17,500 is available to full-time teachers who complete five consecutive years of teaching in a low-income school or educational service agency. There is also a Federal Perkins Loan Teacher Cancellation plan that discharges all or a portion of Federal Perkins Loans for those who have served full-time in a public or nonprofit elementary school or Head Start – or have served as early childhood providers.
Disability
There is a total and permanent disability discharge of federal student loans for those who are totally and permanently disabled.
Repayment under an Income-Driven Plan
There are income-driven repayment (IDR) forgiveness plans in place for those who have been in repayment for 20 to 25 years. The monthly payments for IDR plans are predicated on income and family size. After a specific number of payments are made over the 20-to-25-year period, any remaining balance is forgiven.
Bankruptcy
In some circumstances, federal student loans can be forgiven through bankruptcy. This applies only to those with Direct Loans, Federal Family Education Loans (FFELs), or Federal Perkins Loans. To have student loan debt discharged in bankruptcy, you will need to file an adversary proceeding, which is a separate action requesting that the bankruptcy court deem the debt repayment an undue hardship.
Consult with an Experienced South Carolina Debt Relief Attorney Today
Student loan debt can overwhelm your finances and cloud your future, but in some instances, loan forgiveness is available. The practiced debt relief attorneys at Reed Law Firm have a wealth of experience helping valued clients like you avail themselves of advantageous options that reduce their overall debt and better support their financial goals.
We are on your side and here to help, so please don’t hesitate to contact us online or call us at 803-710-4719 in Columbia, South Carolina, or at 843-396-8076 in Florence, South Carolina, for more information about what we can do to help you today.
