Who is Excluded from Student Loan Forgiveness?
Each year, many students struggle with college tuition and look for ways to make repayment easier. One possibility is student loan forgiveness. However, not everyone is eligible for loan forgiveness programs. As of 2020, here is a list of who is excluded:
Borrowers Who Defaulted on Loans
If a borrower defaulted on student loans, they are not eligible for any current loan forgiveness programs. If they are able to pay off the defaulted loans, they might be able to apply and become eligible for loan forgiveness.
Private Loan Borrowers
Private loan borrowers are not eligible for student loan forgiveness. Private loans are handled by private banks and lenders and not by the federal government. Private loan forgiveness options depend on the lender and the loan.
Borrowers Who Went to a For-Profit School
When it comes to loan forgiveness, it largely depends on where the borrower went to school. If a borrower attended a for-profit school, their loan could be forgiven if:
- The school closed while the student was enrolled
- The student was defrauded
If these two criteria are not met, the borrower will not be eligible for student loan forgiveness.
Borrowers Who Didn’t Work After Graduation
Many loan forgiveness options require borrowers to have worked in a certain field for a period of time after graduating. If the borrower was not able to do this, or didn’t have employment after their graduation, they are not eligible for loan forgiveness.
Conclusion
Student loan forgiveness programs can be incredibly helpful in helping students manage their debt. However, there are certain criteria that needs to be met in order for a borrower to be eligible. If one of the above criteria is not met, then a student will not be eligible for student loan forgiveness.
What other types of debt does student loan forgiveness cover?
Student loan forgiveness does not cover any other types of debt. It is specific to federal student loans only.
What is the criteria for student loan forgiveness?
The criteria for student loan forgiveness varies by program. Generally, borrowers must meet certain eligibility requirements to be considered for a student loan forgiveness program. These requirements typically involve meeting certain income and other economic criteria, such as having a low-income or limited assets, or working in an eligible profession, such as teaching. Additionally, many student loan forgiveness programs require borrowers to make a certain number of regularly scheduled, on-time payments on their qualifying loans in order to be eligible.
What qualifications do I need to meet in order to be eligible for student loan forgiveness?
The requirements for student loan forgiveness depend on the type of program you are applying for. Generally, you must meet certain eligibility requirements such as having a minimum amount of student loan debt, making on-time monthly payments for a certain period of time, and meeting other program-specific requirements. Common student loan forgiveness programs include Public Service Loan Forgiveness, Perkins Loan Cancellation and Discharge, Teacher Loan Forgiveness Plan, and Income-Driven Repayment (IDR) plans.