Forgiveness, discharge & cancellation
Forgiveness, discharge & cancellation all mean that the borrower is no longer obligated to repay all or some of the remaining principal and interest owed on a federal student loan.
Under certain situations, your remaining federal loan balances may be forgiven, discharged or canceled. If you are currently working in a government or not-for-profit organization and repay your loans based on your income, you may qualify for forgiveness of your student Loan after ten years of payments and employment.
If you are a teacher working full-time for five consecutive schools years in a low-income elementary school, educational service agency or secondary school. You may qualify for forgiveness of up to $17,500 on your Student loans.
If you took out any loans and attended a school who engaged in misconduct and violated any state laws or misled you, you may no longer be obligated to repay all or some of the remaining principal and interest owed on that federal student loan.
If you qualify for forgiveness, cancellation, or discharge of the full amount of your loan, you are no longer obligated to make loan payments. If you qualify for forgiveness, discharge or cancellation of only a portion of your loan, you are responsible for repaying the remaining balance.
Below are a list of repayment options that are generally available to all students and parents with:
- Federal Stafford Subsidized and Unsubsidized Loans
- Direct Subsidized and Unsubsidized Loans
- Direct PLUS and FFELP PLUS Loans for Parents and Graduate Students
Standard Repayment Plan
Standard plans last up to 10 years and come with the following features:
- Fixed monthly payment amounts with a minimum amount of $50 per month
- Monthly payment amounts are based on your total loan amount- the more you owe, the higher your monthly payment will be
- You’ll pay less interest for your loan over time under this plan than under other plans
Extended Repayment Plan
Extended plans are available for most students with more than $30,000 in Direct Loan or FFELP loan debt. Under this plan, you have 25 years to pay your loans and choose from either fixed or graduated payments.
- Fixed repayment plan offers the same monthly payment amount for the life of the loan
- Graduated payments slowly increase with time
Graduated Repayment Plan
Graduated plans account for an increase in income during your post-college career.
- Payments usually start lower and increase every two years
- Repayment term is generally up to 10 years and may be longer for Consolidation Loans
INCOME BASED REPAYMENT – IBR
An income-driven repayment or (IBR) is a plan that calculates your new monthly payment by analyzing a borrowers income and family size to determine an affordable payment amount. Let us help you determine if you qualify for the IBR. Call today for your free consultation 844-323-3328, or complete the short form above.
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Income-Contingent Repayment Plan (ICR Plan)
INCOME CONTINGENT – ICR
Any borrower with eligible federal student loans can qualify under this program.
This program is available under the income-driven repayment option for borrowers with parent PLUS LOANS. Unfortunately PARENT PLUS loans can’t be repaid under any of the income-driven repayment programs (including the ICR Plan), parent borrowers may consolidate all of their Direct PLUS Loans or Federal PLUS Loans into a Direct Consolidation Loan and then repay the new consolidation loan under the ICR Plan which is the only income-driven repayment option for borrowers with PARENT PLUS LOANS.
Only federal student loans can be repaid under the income-driven plans. Private student loans are not eligible.