Student Loan Forgiveness FAQ
Welcome to Goodbye Loans FAQs. The landscape of loans, forgiveness programs, and managing debt can be daunting. Our goal is to provide a robust frequently asked questions section to answer as many questions as possible about loan forgiveness.
Please note, this will be continuously updated based on breaking student loan news.
We also have a glossary of acronyms related to financial education and loans.
What is Student Loan Forgiveness?
The Student Loan Forgiveness Act of 2012 would give relief to borrowers with both federal and private student loans. HR 4170 also includes the “10-10” programs, which allows borrowers to pay 10% of their discretionary income for ten years with the remaining balance forgiven afterwards. *Wikipedia
To learn more about this, please click Obama Student Loan Forgiveness.
What types of Loan Forgiveness programs are there?
- Total and Permanent Disability
- Death Discharge
- Discharge in Bankruptcy
- Closed School Discharge
- False Certification of Student Eligibility or Unauthorized Payment Discharge
- Unpaid Refund Discharge
- Teacher Loan Forgiveness
- Public Service Loan Forgiveness
- Perkins Loan Cancellation and Discharge
When can my federal student loans be forgiven?
Whether you’ve graduated, dropped out, your school has closed, or other myriad issues, you might be eligible for loan forgiveness. Regardless of circumstance, such as an incomplete education, an inability to find work in your chosen field, or something else, you still have to pay your loans. Though, there are several factors that go into eligibility.
How do I find out if I qualify for student loan forgiveness?
First, do you have federal loans? If you do, you want to apply for an FSA ID. This is a mandate set forth by the government. The online application takes about 1-2 minutes to complete. Once completed, you’re issued an ID. You will need this for loan forgiveness.
Upon reviewing your loans and chatting with you a bit, we learn more about your situation and what forgiveness programs are applicable to you. In some instances, cancellations are available for people who work in public service, including teachers, law enforcement and military personnel. The type of loan you have also determines your options. Our goal at Goodbye Loans is to get you the very best loan forgiveness program we can. We want to save you time and money.
I didn’t graduate from college, but I’m in debt, do I qualify for loan forgiveness?
Graduating is irrelevant. If you have federal loans you very well might qualify.
I had to drop out of school because I couldn’t afford my tuition, does loan forgiveness apply to me?
Yes, loan forgiveness might apply to you.
My school closed. I didn’t graduate, but I still have student loans, how can I get them forgiven?
The way to get your loans forgiven is by calling Goodbye Loans toll free number 800-940-8911 and speaking with one of our advisers.
My degree is useless! I can’t get a job in my field. The school closed and I owe a lot of money, why do I have to pay my loans?
Unfortunately, when you take out a federal or private loan, 99.9% of the time, you do have to pay your loans. Now, you might be eligible for federal loan forgiveness. You can also contact your lender and find out if you qualify debt consolidation or discharge.
My loans are over 10 years old, why do I have to pay them back?
Regardless of how old your loans are, you still have to pay them. You borrowed money from a private lender or took out a federal loan.
I took out a PLUS loan to help pay for my child’s education, can that be forgiven?
PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay for their education. The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools that participate in the Direct Loan Program. Like all federal loans, you might qualify for loan forgiveness.
Are private student loans forgiven?
No. However, there are many options available for people with private loans. GoodbyeLoans has partner sites we work with who can assist you.If you have any questions, please give us a call 800-940-8911 or email us.