Updated: Jul 28
It is natural to wonder if there are ways to get student loans written off or forgiven. In this blog post, we will explore the different options for loan forgiveness and discharge.
First, it is important to understand that there are limited circumstances under which student loans can be written off or forgiven. These circumstances typically fall into three categories: loan forgiveness programs, loan discharge programs, and bankruptcy.
Loan forgiveness programs are offered by the government and other organizations to incentivize certain types of employment or service. For example, the Public Service Loan Forgiveness program offers forgiveness of federal student loans after 10 years of working in a qualifying public service job, while the Teacher Loan Forgiveness program offers up to $17,500 in forgiveness for teachers who work in low-income schools for five years.
Loan discharge programs, on the other hand, allow borrowers to have their loans discharged in certain circumstances, such as if the borrower becomes permanently disabled, if the school the borrower attended closed while they were enrolled, or if the borrower was a victim of fraud by their school.
Finally, it is possible to have student loans discharged through bankruptcy, but it is an uncommon occurrence as it requires proving undue hardship, which is a difficult standard to meet.
According to data from the Department of Education, as of the first quarter of 2022, approximately 17% of federal student loan borrowers were enrolled in an income-driven repayment plan. These plans allow borrowers to make monthly payments based on their income and family size and offer loan forgiveness after 20 or 25 years of payments, depending on the specific plan.
Additionally, according to a report from the Government Accountability Office, as of September 2022, approximately 59,000 borrowers had received loan forgiveness through the Public Service Loan Forgiveness program, with a total of $3.3 billion in loans forgiven.
If you are looking to get your student loans written off, it is important to explore all of the available options and understand the requirements for each program. Additionally, it is crucial to stay up-to-date on changes to loan forgiveness programs and regulations to ensure you are taking advantage of all available opportunities.
While it can be possible to get your student loans written off or forgiven, it typically requires meeting specific requirements or circumstances. Borrowers should explore all available options and stay informed to ensure they are taking advantage of any available loan forgiveness or discharge programs.