Here are 3 ways to get student loan forgiveness now.
Here’s what you need to know.
If you’re looking for student loan forgiveness, it might seem like a steep climb. With no large-scale student loan foreclosures anytime soon, you may be wondering if you even qualify for student loan forgiveness. President Joe Biden has canceled $15.5 billion in student loans since taking office. Also, there are other student loan forgiveness options that you may not be aware of but should.
Here are 3 ways to get student loan forgiveness now:
$2 billion in student loan forgiveness
The US Department of Education has awarded $2 billion in student loan forgiveness to federal student loan borrowers for this type of student loan forgiveness. It’s called Borrower Defense Until Repayment and allows student loan borrowers to obtain partial or full student loan cancellation if their college or university misled them. For example, this week the Department of Education canceled $415 million in student loans for 16,000 borrowers misled by their for-profit college. To qualify for the borrower’s defense, you must demonstrate that your school broke state law in connection with your student loan or the educational services provided.
How to apply: You can apply for a borrower defense for repayment through the Federal Student Aid.
(Related: Student Loan Cancellation Reduced to $25,000 for Student Loan Borrowers with New Proposal.)
$1.8 billion in student loan cancellations
If you have student loans, there’s a good chance Navient — one of the nation’s largest student loan companies — is your student loan servicer. While Navient will no longer be servicing federal student loans, Navient announced a major settlement to resolve allegations of “widespread unfair, deceptive and abusive student loan servicing practices and abuse in the issuance of predatory student loans.” As part of the settlement, Navient will forgive $1.7 billion in subprime private student loan debt owed by nearly 66,000 student loan originators, mostly in for-profit schools. (Is student debt cancellation next?) Navient will also make $95 million in rebate payments of about $260 each to about 350,000 federal borrowers on student loan forbearance.
How to apply: By July 2022, Navient will be contacting student loan borrowers who are eligible for student loan termination.
(Related: Here’s Who Can’t Get Student Loan Forgiveness).
$4.5 billion in student loan forgiveness
The Biden administration has cut $4.5 billion in student loans for public employees. It’s not too late to get government loan forgiveness, which can help you get full federal student loan cancellation. To qualify, you must be working full-time for a qualifying nonprofit or government employer, enroll in an income-tested repayment plan, and make 120 monthly student loan payments. Importantly, there is a unique opportunity through October 31, 2022 to receive a limited student loan forgiveness waiver. For example, if you had previous student loan payments that did not qualify for student loan forgiveness, completing a limited waiver form can “count” those payments, giving you full credit for student loan cancellation. It’s part of Biden’s plan to expand student loan forgiveness to more borrowers. Contact your student loan administrator for more information.
How to apply: You can apply to the US Department of Education for a government loan waiver. Be sure to fill out an Employer Attestation Form annually and whenever you change jobs.
(Student loan refinance falls at ridiculously low interest rates)
With the temporary student loan relief expected to end soon, it’s important to review your student loan repayment options. Here are some popular ways to pay off student loans:
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Disclosure: Navient is a financial partner of Mentor.