{"id":31930,"date":"2020-09-28T18:39:53","date_gmt":"2020-09-28T22:39:53","guid":{"rendered":"https:\/\/www.theamateurfinancier.com\/blog\/?p=31930"},"modified":"2020-10-08T09:19:10","modified_gmt":"2020-10-08T13:19:10","slug":"is-student-loan-forgiveness-a-real-thing","status":"publish","type":"post","link":"https:\/\/www.theamateurfinancier.com\/blog\/is-student-loan-forgiveness-a-real-thing\/","title":{"rendered":"Is Student Loan Forgiveness a Real Thing?"},"content":{"rendered":"

While it might sound too good to be true, you really can have your student loans forgiven. That is, assuming you meet a certain set of qualifications.<\/p>\n

So yes, student loan forgiveness is a real thing.<\/p>\n

What Does It Mean to Have a Student Loan Forgiven?<\/h2>\n

Some people qualify to have part or all of their student loans forgiven, meaning they no longer have to pay on that portion of the balance. This is also referred to as having a student loan cancelled or discharged<\/a>. These things have almost the same definition; the only difference being student loan forgiveness usually coincides with meeting employment requirements, while discharge is for outside causes, such as a permanent disability.<\/p>\n

It\u2019s important to know your student loans will only be forgiven or discharged if you meet certain standards necessary for receiving that aid. Students and potential students should also acknowledge they won\u2019t have their student loans forgiven if they don\u2019t finish school. You still have to pay for an uncompleted degree.<\/p>\n

And, those loans will continue racking up interest until they\u2019re paid off.<\/p>\n

One exception to this is if a school closes down permanently before you can complete your degree. Make sure you understand the ins and outs of student loans before you sign up for them at all. Life can take many unexpected turns. Taking out a lot of loans when you\u2019re young can limit your ability to make larger financial moves down the line, especially if you don\u2019t end up finishing school.<\/p>\n

What Are Your Options for Reducing Student Loan Debt?<\/h2>\n

As you can probably imagine, there\u2019s a lot to learn when it comes to applying for and receiving student loan forgiveness. The Federal Student Aid<\/a> website has an exhaustive list of the different ways you can have your student loans forgiven.<\/p>\n

Let\u2019s look at a few of the more common scenarios:<\/p>\n

Public Service Loan Forgiveness<\/strong>: People who work for the government or a non-profit might be able to get this type of loan forgiveness. PSLF forgives your remaining balance on Direct Loans if you\u2019re working for a qualifying employer and have made 10 years of payments.<\/p>\n