• Government
• Not-for-profit section 501(c)(3)
• Not-for-profit that provides certain public services

Other types of federal loans can be forgiven through the program if included in a Direct Consolidation Loan. Any PSLF payments made before consolidation do not count toward the requirement of 120 monthly payments. The PSLF Program sets strict policies for qualifying monthly payments. With the exception of AmeriCorps or Peace Corps volunteers, who, under the right circumstances, can make a lump-sum payment that counts as 12 qualifying monthly payments, you are generally only allowed to receive credit for one payment each month, even if you make a payment larger than the required amount. As a result, it takes at least 10 years to get a loan forgiven. For this reason, PSLF is more suited to workers who plan to remain in their professions for the long term.

AmeriCorps

The Segal AmeriCorps Education Award is available to AmeriCorps workers to apply to their student loan balances. The amount of the award varies year to year and depends on the ED’s Pell Grant. To be eligible, you must serve a full-time term of national service within a 12-month period. Once you receive the award – totaling around $5,775 – you must use it within seven years. You can earn a maximum of two awards. You may use your award to pay numerous types of student loans, including Direct Loans, Stafford Loans, and Federal Consolidated Loans, as well as loans issued to members by state agencies.

If you are an AmeriCorps VISTA member, you may choose to take a cash stipend at the end of your service instead of the education award. As a VISTA alum, you may also receive up to 15-percent cancellation of your student loan. AmeriCorps limits the number of terms you can serve, which varies depending on the program within AmeriCorps.

Peace Corps

The Peace Corps does not administer a loan forgiveness program. But many individual lenders set up programs to assist Peace Corps workers in their student loan repayments. Peace Corps workers to seek forgiveness for Direct Loan or Direct Consolidation Loans.

Military Service Members

Service members have a number of options to reduce student loan debts. The National Guard has a program designed for members who enlist or re-enlist for a minimum six-year term. The U.S. Armed Forces also provide various forms of repayment assistance or relief to service members, which largely depends on your service status.

National Guard

If you are enlisted, planning to enlist, or previously enlisted with the National Guard, you may be able to participate in the National Guard’s Student Loan Repayment Program (SLRP) to reduce your federal student loan, as long as your loan is listed in the ED’s National Student Loan Data System (NSLDS) or it is a federal Parent PLUS loan incurred for individual use. The current https://badcreditloanshelp.net/payday-loans-me/ maximum amount you can receive through the SLRP is $50,000 annually. To be eligible, you must enlist for a minimum six-year term in a qualifying role.

U.S. Armed Forces

At minimum, you may attempt to postpone repayment of your loan or eliminate interest payment obligations if you are on active duty or are preparing to return to school following active duty. But in some circumstances, you can have your entire loan balance forgiven and canceled.

Private Loan Forgiveness and Cancellation

Although numerous student loan forgiveness and repayment programs exist for federal student loans, borrowers of private loans face fewer formalized options and consumer regulatory protections. Lenders of private student loans rarely offer loan forgiveness and cancellation provisions. In extreme cases, even death doesn’t discharge a private student loan, depending on the conditions. It’s possible for a parent to co-sign a loan and, if the student passes away or becomes permanently disabled, the legal obligation to pay the loan falls on the parent.