Generally, paying back a loan can be quite difficult for people, and students are no exception. This difficulty in repayment is not by choice but is most often due to certain uncontrollable circumstances. This is why student experts recommend going for a government loan, as with the public student loan, there are other remedies for a student being unable to repay.
A student getting a loan from the government has a chance of not paying back the loan through the government’s Public Student Loan Forgiveness.
Federal loan forgiveness for students is specifically aimed at student borrowers who received a public or federal student loan. The government has no power to interfere with private institutions’ loan operations. So as a student, to enjoy the government forgiveness program, you should first consider a public student loan.
In this article, you will learn about public student loan forgiveness, how you can apply for loan forgiveness, and all other topics that pertain to public student loan forgiveness.
What is Public Student Loan?
A public student loan which can also be referred to as a federal student loan is a type of loan that only students have access to. In other words, the loan is granted only to students that need the cash for funding their education.
Public Student Loan Forgiveness
A Public Student Loan Forgiveness is a program organized by the government for students with the sole purpose of offsetting the loan debt of the student in exchange for rendering services on behalf of the government.
Public student loan forgiveness is also called federal student loan forgiveness. This forgiveness or pardon is only available to students who are currently enrolled in a loan program, specifically a federal student loan. Therefore, this implies that only students who took a loan from the government can enjoy forgiveness.
Forms of Public Student Loan Forgiveness
Relief from payment of loans particularly by students comes in two main forms. Students do not just get loan forgiveness but actually have to earn the forgiveness. As a student, there are fundamentally two known ways you can earn forgiveness for your loan. Each of the ways has its own condition attached to it.
The two ways you can get loan forgiveness are:
- By doing public service
- Repayment plans
Public Service Loan Forgiveness
Public service loan forgiveness is an option that students can use to earn loan forgiveness. This is particularly true for people who work for the government or any non-profit organization. By engaging some certain types of volunteer work, medical practice, etc
Repayment Plans Forgiveness
This is another way you can earn your student loan forgiveness as a student. If you aren’t working in a public service establishment, this is another way to earn federal student forgiveness. Through this repayment plan, you can get forgiveness for part of your loan as a graduate. This is possible after paying part of the loan for a stipulated time period.
Some examples of these repayment plans are
- Income-Contingent repayment
- Income-Based repayment
- Pay As You Earn (PAYE)
Public Student Loan Forgiveness For Nurses
In the federal government’s student loan forgiveness program, there are some programs that can be useful for nurses. So be sure to carefully go through each program’s detailed review, to know the qualifications before making your application.
The Nurse Student Loan Forgiveness program is established to provide substantial nurses aid to pay back educational loans in exchange for offering substantial service in government facilities situated in areas experiencing a shortage of Nurses.
The student loan forgiveness for nurses will cover 60 percent of the sum of the nurse borrower’s loan in two years. A third optional year is sometimes allocated an additional 25% of the initial balance. As a Nurse Corps member, your services at any nonprofit clinic, hospital, or government mental health care facility qualify you for this forgiveness.
Who is Eligible For Nurse Loan Forgiveness?
- You must be a citizen of the united state (US).
- Have completed Nurse training.
- Must be a registered licensed Nurse.
- Be currently working full-time in any eligible facility that is short of Nurses.
How to Apply for Student Loan Forgiveness
- You and your employer must fill out the employment certification form
- Get the w-2 form available and also other relevant documents as requested.
- Having met the conditions for repayment, render your application for a Public Services Loan Forgiveness to the Department of Education.
- Upon approval of your application, the Federal government will forgive the balance remaining on your loan.
Public Student Loan Relief
The federal government is offering some measures to help students with their loans. particularly students who are finding it challenging to settle the loan. The following measures last through September 30, 2023.
- Automatic Interest Waving on Public student loans.
- Ceasing all default federal student loans collection activities
- Automatic leniency to most federal student loan borrowers
Through September 30, The interest rate on most federal student loans is at 0%. During this period no new interest is expected to accrue on any held public student loan.
Provided you have no outstanding interest or fees on your loan if you repay part of your loan during the period. Your entire payment will go towards your principal balance. Though your actual payment amount will not change, this will help you save more.
Stop Collection Activities
Secondly, through Sept 30, the federal government has ceased all Public Student Loan Retrieving activities. Some of these collection activities are Tax refund seizure and collection calls, wage and social security garnishment, and of course letters.
Another good thing about the policy is that it is retroactive to March 13, 2020, what this implies is that for any compelled student payment since this date, you will receive a refund in full.
Public student loan borrowers automatically receive a forbearance through Sept. 30, 2023. This is not your typical forbearance, which means no payment for a set period of time; in this case, until September 30, 2023. The difference is that there will be no payment of interest as well. which is not the case for forbearance.
As you have read, for students wishing to take a student loan, the public student loan is the best recommendation. There are many benefits you get from taking a loan from the government. Taking a public student loan is a step towards being able to get student loan forgiveness.
- Nerdwallet– Student Loan Relief
- Federalstudentaid– Student Loan Forgiveness
- Debt.org– Student Loan Discharge