Student Loan Forgiveness Plan

Student Loan Forgiveness Plan

Student Loan Forgiveness Programs can eliminate anywhere from a few thousand dollars to upwards of $100,000 of your student loan debt.

Did you know that some student loans can be forgiven? Yes, it’s a well-guarded secret that programs exist that can eliminate some or all of your student loans in return for choosing certain careers, military service, and even volunteer work. Most college graduates are completely unaware of these and therefore do not know if they qualify and they fail to apply.

There are several Student Loan Forgiveness programs available that you may qualify for. US Direct can help explain these programs in simple terms, show you your options, and submit all the paperwork for you. It’s that easy!


Find out if you are qualified

At  US Direct, we are the experts in making the most out of the tools available so that you can save every dollar possible in your student loan repayment.

Why waste hours on the phone and web trying to make sense of it all when one quick call to US Direct can make it so simple and easy for you! Our highly trained staff will show you every possible method of reducing your Student Loan debt, and how to maximize your ability to take advantage of the readily available federal student loan forgiveness programs. Our thorough and streamlined process is quick and painless. We provide expert help and guidance with all of your student debt needs. Our streamlined process assures that all the correct paperwork is submitted through the right channels so that we achieve the best results for you.

Public Service Student Loan Forgiveness Program

Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time be certain public service employers. Since borrowers must make 120 monthly payments on their eligible federal student loans beginning after October 1, 2007 before they qualify for the loan forgiveness, the first cancellations of loans balances will not be granted until October 2017.

Eligible Loans Only subsidized and unsubsidized Federal Direct Stafford loans, Federal Direct PLUS loans, and Federal Direct student consolidation loans are eligible for this forgiveness program. If you have a Federal Family Education Loan (FFEL) or a Federal Perkins loan, you may only be eligible though student loan consolidation into a Federal Direct Consolidation loan. Employee Requirement A public service employee must retain full-time status for 10 years and make at least 120 monthly payments before their loan may be forgiven under this program.

What types of public service jobs will qualify for loan forgiveness?

  • A federal, state, local, or tribal government organization, agency, or entity(includes most public schools, colleges and universities)
  • A public or family service agency
  • A non-profit organization under section 501(C)(3) of the Internal revenue Code that is exempt from taxation under 501(a) of the Internal Revenue Code (includes most non-profit private schools, colleges, and universities);
  • A Tribal college university; or an organization that is not a for-profit business, a labor union, a partisan political organization, or an organization engaged in religious activities.
  • Emergency Management
  • Military Law Enforcement
  • Public interest law services
  • Early Childhood Education (including licensed or regulated health care, Head Start, and state-funded pre-kindergarten) Public Service for individuals with disabilities and the elderly Public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations)
  • Public Education Public library services; and School library or other school based services.
Perkins Loan Forgiveness

This federally funded program is designed to provide lower interest rate loans to help disadvantaged students pay for college. After the student competes college, this program will provide student loan debt relief if the student, in exchange, provides services that meets certain program criteria. The exact loan amount forgiven is dependent upon the profession.

Stafford Loan Forgiveness for Public Service

Under this program a student must complete 10 years of full-time public service employment and make at least 120 monthly payments towards their loan before any remaining student loan debt can be cancelled. Public service work may include but is not limited to public safety, law enforcement, social work, public school system jobs, military service, and more. Loans eligible for this student forgiveness program are limited to Federal Direct Loans and Federal Direct Consolidation Loans.

Student Loan Forgiveness For Teachers

This program is available to teachers who work in low-income areas and who work with special needs children. To qualify, the student must complete five consecutive years in a qualified school system and the program can forgive up to $17,500 of student loan debt. Additionally, the student is only eligible to use this student loan forgiveness program for loans disbursed before the end of the five-year period and if the student has not previously received a grant for the AmeriCorps program.

Stafford Loan Forgiveness For Military Personnel

This student loan forgiveness program is available to first time recruits (active and reserves) who have completed their college education before enlisting in the military. For a recruit to qualify for this program, they must have a high school diploma and pass the military’s entrance requirements. This includes passing the Armed Services Vocational Aptitude Battery Test with a minimum score of 50. Another stipulation for this program is that enlisted military personnel cannot receive the loan forgiveness program at the same time as the Montgomery GI Bill. In order to receive the loan forgiveness, the serviceman must deny the GI Bill in writing and guarantee the loan repayment program in the enlistment contract. After every year of qualified service, the forgiveness program will send the greater amount of $1500 or 33 1/3 of the loan principle directly to the lender. In the same year that the payment is sent by the program, the serviceman must also pay the interest and taxes on the loan payment for that year. As with every forgiveness plan, those who have a defaulted loan cannot partake in the Stafford forgiveness plan until the loan is brought to a satisfactory standing.

Private Student Loan Forgiveness

Private student loans are not backed by the government, as are federal student loans. Students seek private loans through banks or other financial institutions usually when federal financial aid award is not enough. The downside to these private loans is that there are limited repayment options available and payments amounts are generally higher. As a result, resources that may allow a private student loan forgiveness program are limited.


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