Grad PLUS Loan Forgiveness Programs You Should Know About

Student loan debt can be a heavy burden for many recent graduates, especially those who have taken out Grad PLUS loans to fund their education. Fortunately, there are several forgiveness programs available that can help alleviate some of this financial stress. In this article, we will discuss some of the main Grad PLUS loan forgiveness programs that you should be aware of.

Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) program is one of the most well-known forgiveness programs available to borrowers with federal student loans, including Grad PLUS loans. This program was created to encourage individuals to pursue careers in public service by forgiving the remaining balance on their loans after making 120 qualifying payments while working full-time for a qualifying employer.

Qualifying employers include government organizations at any level (federal, state, local, or tribal), non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and other non-profit organizations that provide qualifying public services. Borrowers must also be enrolled in an income-driven repayment plan to qualify for PSLF.

Teacher Loan Forgiveness

For borrowers who have taken out Grad PLUS loans and work in the field of education, the Teacher Loan Forgiveness program can provide significant relief. This program forgives up to $17,500 in federal student loans for teachers who teach full-time for five consecutive years in a designated low-income school or educational service agency.

To qualify, borrowers must be highly qualified teachers who teach in a field or discipline that is included in the needs of the school’s education program. Additionally, teachers must have taken out their loans before the end of their five-year teaching service period to be eligible for forgiveness.

Income-Driven Repayment Forgiveness

Income-Driven Repayment (IDR) plans are designed to make student loan payments more manageable for borrowers by setting monthly payments based on their income and family size. After making payments on an IDR plan for 20 or 25 years, depending on the specific plan, any remaining balance on the loan will be forgiven.

Grad PLUS loan borrowers who are enrolled in an IDR plan may be eligible for forgiveness after making a certain number of qualifying payments. It’s important to note that the forgiven amount may be considered taxable income in the year it is forgiven, so borrowers should plan accordingly for potential tax consequences.

Graduate Student Loan Forgiveness Programs

There are also specific forgiveness programs available for graduate students who have taken out federal student loans, including Grad PLUS loans. One such program is the Health Professions Loan Forgiveness program, which provides loan forgiveness for healthcare professionals who work in underserved communities.

Similarly, the Attorney Student Loan Repayment Program provides assistance to attorneys who work in public service jobs such as prosecutors, public defenders, and legal aid attorneys. These programs offer varying levels of forgiveness based on specific criteria, so borrowers should carefully review the eligibility requirements before applying.

Next Steps

If you have Grad PLUS loans and are struggling to make your monthly payments, it’s important to explore your options for loan forgiveness. By understanding the forgiveness programs available to you and meeting the eligibility requirements, you may be able to significantly reduce or eliminate your student loan debt.

Be sure to research each forgiveness program thoroughly and reach out to your loan servicer for more information on how to apply. Additionally, consider consulting with a financial advisor or student loan expert to help you navigate the forgiveness process and make informed decisions about your student loan repayment.

Remember that managing your student loan debt is a marathon, not a sprint. By staying informed and proactive about your options for loan forgiveness, you can take steps towards achieving financial freedom and reaching your long-term financial goals.

Conclusion

Grad PLUS loan forgiveness programs can provide significant relief for borrowers who are struggling to repay their student loans. By taking advantage of these programs and meeting the eligibility requirements, you may be able to reduce or eliminate your student loan debt over time.

It’s important to research each forgiveness program thoroughly and reach out to your loan servicer for more information on how to apply. By staying informed and proactive about your options for loan forgiveness, you can take control of your financial future and work towards achieving your long-term financial goals.

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