Federal student loans provide advantages that other loans do not. One of the benefits is the possibility of receiving loan forgiveness. Under certain circumstances, the federal government can forgive all or a portion of your federal loans. This means that you’re no longer required to make repayments on loans. Another advantage is that there could be certain circumstances in which you might be eligible to have your loan canceled.
These are just a few of the most commonly used loan forgiveness and discharge types.
Loans for Public Service loan forgiveness (and temporary expanded Public Service loan forgiveness)
Teacher Loan Forgiveness
Closed School Discharge
Permanent and Total Disability Discharge
What exactly is Great Lakes student loan forgiveness?
The possibility of forgiveness for student loans is available through various plans and programs. People who meet certain requirements (e.g. being employed in the same profession, working for an organization that is a nonprofit or government agency, or who qualify for the discharge of disability) are able to avoid paying back a portion of their federal student loans. This is a fantastic way to eliminate a significant portion of the credit card debt from your student loans.
This is a review of some Great Lakes loan forgiveness programs which could be offered to you.
Great Lakes income-driven repayment forgiveness
You may apply for an income-driven repayment (IDR) plan that will keep your Great Lakes student loan payment at a low cost, depending on your earnings and the size of your family. The federal government has four options for repayment based on income:
Updated Pay as you Earn (REPAYE)
Pay As You Earn (PAYE)
Incentives-Based Repayment (IBR)
Income-Contingent Repayment (ICR)
In order to be eligible for Great Lakes student loan forgiveness it is necessary to switch the repayment program you’re currently using to the IDR plan. In an IDR plan, the amount you pay each month will be limited to 10 to 20 percent of your discretionary income for a period of 20 up to 25 years. When you have completed your repayment period, the remaining balance on your student loans is paid off (including the interest that is not paid as well as the principal).
However, the caveat is that the forgiveness of the loan amount is considered taxable income. If you decide to go through an IDR plan that involves the option of student loan cancellation, be sure you plan for tax liabilities so that you don’t get any surprises. In the meantime, it’s an excellent way to cut down on the cost of your monthly payments.
Public Service Loan Forgiveness (PSLF)
Work for an agency that is not private or nonprofit, and you are a member of a nonprofit organization. You could be eligible to get loan forgiveness through the program known as the Public Service Loan Forgiveness (PSLF) program.
The PSLF Program forgives the remaining portion of your Direct Loan* after completing 120 qualifying monthly payments in an eligible repayment plan working full-time at a qualifying employer.
Fill out the Form for Form for Public Service Loan Forgiveness (PSLF) Formula with the PSLF Help Tool
PSLF Help Tool PSLF Help Tool helps determine whether an eligible employer employs you under the PSLF or temporary Expanded Public Service Loan Forgiveness (TEPSLF) programs. It offers suggestions on how to qualify for PSLF and walks users through the PSLF form and the submission process.
Great Lakes Teacher Loan Forgiveness
Suppose you have taught full-time for five consecutive, complete academic years at a lower-income secondary or elementary school or in an educational service provider and are eligible. In that case, you may qualify for the Teacher Loan Forgiveness program.
This program can forgive up to $17,500 for Direct Loans and FFEL Loans from the Program. Educational services and schools with low-income agencies are included in the teacher Cancellation Directory for Low-Income Students. Directory The U.S. Department of Education annually.
However, the maximum amount of $17,500 loan forgiveness only applies to the following:
Professionally trained full-time math and science instructors who instructed students at the secondary school levels.
Highly trained Special education instructors from secondary or elementary schools, whose main responsibility was teaching students with disabilities.
The borrower who doesn’t teach science, math, or special education may be eligible for up to $5,000 in loan forgiveness. However, they must be an experienced teacher who is a full-time elementary or secondary school teacher.
You may apply for teacher loan forgiveness when you’ve completed the five years of teaching that qualify you. You’ll need to submit an application for the forgiveness of teacher loans for Great Lakes. The head of the administrative office at the educational service organization where you worked must submit the certificate section.
If you are a customer of multiple federal servicers for student loans, you’ll have to send a form to each of them. The forgiveness of teacher loans isn’t tax-deductible.
What if I’m not happy with My Servicer?
It’s not possible to select the federal loan servicer because they’re given to you. If you’re unsatisfied with the services you’ve received from the loan servicer you use, you can take advantage of refinancing student loans. In addition to losing federal benefits from loans, you could be eligible for an interest rate lower or lower monthly payments. Use Juno to request an estimate of the rate without impacting your score on credit.
Juno will help you find the lowest possible rate for private student loans. We advocate for borrowers with lenders who partner with us to ensure that every student can qualify for the most affordable rates for their financial circumstances.
Beware of Default and Delinquency
If you fail to make the required student loan payments, the loan will be considered delinquent. Your loan will be considered in arrears from when you do not make a payment until you have made up the missed payment or until it goes into default. If a loan is in default due to late fees, they can be added to your account, and late payments are reported to four major credit bureaus. The loan defaults if you’ve been delaying payments for more than 270 consecutive days. If your loan is in default, the total amount of the loan is due immediately, and you could face other legal and financial penalties. There are, however, options to help you get things back on track.
Are you unsure of how to handle your college loan?
Take our quiz of 11 questions to receive personalized advice on whether or not you should look into PSLF, IDR forgiveness, or refinancing (including the one that we believe can offer you the most favorable rate).