What is Loan Forgiveness Program? Its Benefit and Procedure

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What is Loan Forgiveness Program Its Benefit and Procedure

Are you stuck under a loan? Looking for the authentic Loan Forgiveness Program? This article will share a vital glimpse of the Loan Forgiveness Program along with its right procedure and benefits. If you are employed by the state, local, U.S., federal, tribal government, or working for the not-for-profit organization, you are eligible to enroll for the Public Service Loan Forgiveness Program. 

Who can qualify under the Public Loan Forgiveness Program?

Here are the essential requirements to qualify for the Public Loan Forgiveness Program:

  • The prime condition you have to fulfill is that you must be employed by a U.S. federal, government, or not-for-profit organization as we already discussed earlier. 
  • The federal service must consist of U.S. military service.
  • You should be a full-time employee of a particular organization or agency.
  • You have two alternate options; you must have direct loans or you can consolidate other federal student loans into a Direct Loan.
  • You need to repay your loan amount under an income-driven repayment method.
  • You must provide 120 eligible payments.

Who is not eligible to get the benefit of the Public Loan Forgiveness Program?

  • If you are working as a Labor union member.
  • If you are an employee of the profit organizations (consisting of profit government contractors).
  • A person involved in Partisan political organizations.

Read Also: What You Should Know About Financial Reporting?

On the other hand, if you are a student and want to get relief from the loan then the federal government will cancel part or all of your educational loan. Have you heard about the Sallie Mae loan forgiveness procedure? It has an amazing advantage, check the entire information associated with this link. Let’s discuss how?

What Is Student Loan Forgiveness?

The student can take the benefit of the Student loan forgiveness program under the below circumstances:

  • If they are volunteering their services.
  • If they are doing military service.
  • If they practice medicine in particular types of communities.
  • If they are meeting other specified criteria by the forgiveness program.

All the students authorized to get the full or partial loan forgiveness benefit if they borrowed the amount for your post-secondary education fees. 

Student Loan Forgiveness-Complete information

  • Volunteer service: Numerous organizations such as AmeriCorps, Volunteers in Service to America (VISTA), and others offer loan forgiveness to students.
  •  Military Service: If you are involved in the army national guard, you might be eligible to get the student loan repayment forgiveness program. 
  • Teaching: The National Defense Education Act provides the benefit of loan forgiveness relief if you are working as a full-time teacher in an elementary or secondary school where you are serving students from low-income families after completing your education.
  • Legal studies: Many renowned law schools or colleges offer loan forgiveness to the students who serve their work for the public interest or non-profit organizations.

Benefits of loan forgiveness programs

There are many benefits of the loan forgiveness programs you might unaware of so let’s explore how we can be the part of these benefits:

  • Get loan relief: It provides relief from the student loan debt and if you enroll for the Public Service Loan Forgiveness program, you are liable to make the 120 monthly payments along with the redemption of the student loan. That 120 monthly payments you need to pay back over 10 years and then the remaining amount will be forgiven by the authorized body. Additionally, the teacher loan forgiveness also helps you to escape from the burden of loan but that might be partial.
  • No tax on the forgiven amount: There is no need to pay tax on the forgiven amount. Although, some of the loan forgiven amount considers as taxable income, however, this is not associated with the Teacher Loan Forgiveness and Public Service Loan Forgiveness programs.
  • Loan forgiveness programs are not limited to particular jobs: There is no need to be an employee of the public sector service to avail the advantage of the Public Service Loan Forgiveness program. These programs are linked with the employer, not with the work you associate with. Thus, you can work at your desired job and apply under the loan forgiveness program.

Hence, these loan forgiveness programs are highly attractive and if you are catering to necessary requirements then it is best to avail such a big relief.

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