https://www.usatoday.com/story/mone.../06/student-loan-forgiveness-options/2776545/
Below are four ways borrowers can have their federal student loans forgiven through a variety of government programs.
1. Become a public school teacher in a low-income area.
Thanks to the government's Teacher Forgiveness Program, up to $17,500 of your federal Stafford loans or the entirety of your Perkins loans can be forgiven in exchange for five consecutive, full-time years as a teacher at certain low-income elementary or secondary schools.
2. Join the military.
From the Army to the National Guard, each branch of the military has its own student loan forgiveness program. Forgiven loan amounts usually depend on the level of rank achieved. Those interested should contact their preferred branch to learn about their options, Mayotte suggested.
3. Apply for the Income-Based Repayment Plan.
Just about everyone should consider applying for the Income-Based Repayment Plan, Mayotte says. The program adjusts students' monthly loan payments to be no more than 15% of their "discretionary" income (the amount of money they make that falls above the federal poverty level).
Take, for example, a recent grad who makes $20,000. Because the federal income level within the contiguous United States is $11,490, that means he only makes $8,510 in discretionary income. Under the IBR, he would only have to make payments that were 15% of that $8,510, which equals about $106 a month.
It's entirely possible, Maylotte says, that some recent graduates make so little that they qualify to make $0 payments.
After 25 years of making these adjusted loan payments, the borrower's remaining balance is completely forgiven.
4. Get a public service, government or non-profit job.
Those who borrowed money under the William D. Ford Federal Direct Loan program can apply to the Public Service Loan Forgiveness Program. In this program, full-time employees in the public service or non-profit sector can have the remainder of their outstanding debt forgiven after they successfully make 120 qualified loan payments.
What kinds of jobs qualify as public service? "Any employment with a federal, state or local government agency, entity, or organization or a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code (IRC)," according to the U.S. Office of Education's federal student aid website.
