Students are dreaming of getting rid of their student loan debts. Federal student loans forgiveness exist to help students reduce or cancel federal loan balance.
There are four types of loan forgiveness student loans programs:
- Public Service Loan Forgiveness is a forgiveness of student loans program that works if you work full time for a nonprofit or the government for minimum 10 years. Firefighters, teachers, military personnel, and nurses are included. This program works with federal direct loans only but you can consolidate other loans to participate in this program. Otherwise, you can refinance private student loans to lower the interest rates.
- Teacher Loan Forgiveness is the other forgiveness student loans program that is available for teachers only. Furthermore, a teacher has to work full time for five serial years. The program deals with direct loans and Stafford loans.
- Perkins loan cancellation suits for federal Perkins loans borrowers, who worked in public service jobs at least 5 years. Teachers, firefighters, nurses, police officers, school librarians and public defenders are included. The program can cancel up to 100% of their loan.
- Income-driven repayment is the student loans forgiveness program that doesn’t specialize in a certain type of a loan. It’s available when borrowers’ large loan balance doesn’t suit to their incomes.
You can also draw your attention to Obama student loans forgiveness that also has many beneficial consolidation options.