Pursuing higher education is an excellent way for Texans to invest in their future. A degree can pave the way for better work opportunities, but paying for your education can be expensive. To afford tuition, many Texans take out student loans.
However, this can easily turn into a long-term burden that may cost you dearly down the line. Whether you currently have student debt or are considering applying for student loans, it can be good to know if you qualify for student loan forgiveness.
Under the supervision of a debt resolution attorney, student loan assistance can help you manage your loans and gain access to debt relief. A debt resolution attorney will determine if you’re eligible for forgiveness and can direct you to programs that suit your needs. Learning about the different programs available is the first step toward successfully managing your student loans. ATTENTION: If you are a goverment or nonprofit employee, there is an October 31, 2022 deadline for certain criteria that may benefit you. Please read about the Public Service Loan Forgiveness Program below.
1. Public Service Loan Forgiveness Program
Government employees and nonprofit workers with federal student loans may qualify for the Public Service Loan Forgiveness (PSLF) Program. After making 120 loan payments, qualifying individuals may be eligible for tax-free loan balance forgiveness. The Department of Education has issued a waiver expanding the criteria for loan forgiveness to include Federal Family Education Loans (FFEL) and Perkins Loans.
However, this limited waiver is set to expire on October 31, 2022. If you’re a government or nonprofit employee in Texas with FFEL or Perkins loans, contact a debt resolution law firm to see if you qualify before these expanded programs expire.
2. Income-Based Repayment
One of the more common student loan forgiveness programs is an income-based repayment (IBR) plan. An IBR plan can help you manage student loan debts at your own pace. IBRs establish a 25-year repayment plan, after which the program will forgive the remainder of your loans.
For individuals with loans before July 1, 2014, payments cap out at 15% of that individual’s discretionary income. However, for those who acquired loans after July 1, 2014, loan payments will not exceed 10% of their discretionary income.
Speaking with a Texas debt resolution attorney can help you determine if you qualify.
3. Pay As You Earn
In terms of their structure, pay-as-you-earn (PAYE) repayment plans closely resemble IBR plans. Like IBR, PAYE limits how much of your income you’ll have to pay annually. To this end, PAYE requires you to pay no more than 10% of your discretionary income, with possible loan forgiveness after 20 years.
PAYE differs from IBR in that it can only be used for certain loans dating back to 2007. Given the narrow eligibility requirements, it can be difficult to know if you qualify for PAYE and how to apply for it. A debt resolution attorney can determine whether you are eligible and help you take advantage of the benefits.
4. Student Loan Forgiveness for Nurses
Nurses with student loans have several options to choose from. These include the Public Service Loan Forgiveness Program, Perkins Loan cancellation, and NURSE Corps Repayment Program. While NURSE Corps offers forgiveness for up to 85% of student loan debt, this program is competitive and can be difficult to access.
A debt resolution law firm can help you navigate the application process and may increase your odds of receiving student loan assistance from the NURSE Corps Repayment Program.
5. Teacher Loan Forgiveness
Teacher Loan Forgiveness may be available for full-time teachers working in low-income public schools. Teachers must have at least five complete and consecutive years of public school teaching experience to qualify. Eligible candidates may receive up to $17,500 in debt forgiveness for loans acquired after October 1, 1998.
6. Income-Contingent Repayment
Unlike IBR and PAYE, income-contingent repayment (ICR) plans do not have income requirements. Since many borrowers are eligible to make payments under this plan, this option can be attractive for Texans earning salaries above a certain threshold. An ICR plan offers:
- Payments that cap out at 20% of your discretionary income
- Loan forgiveness after 25 years of qualifying payments
- Payments below traditional fixed payment plan programs
7. Faculty Loan Repayment Program
The Faculty Loan Repayment Program, managed by the U.S. Department of Health and Human Services, encourages students to seek degrees leading to faculty and administrative positions in healthcare fields. Qualifying applicants may be able to receive up to $40,000 in student loan assistance, as well as funds to offset taxes.
Get Help with Student Loans from an Experienced Texas Debt Resolution Attorney
Debt can be overwhelming for many Texans, which may be why you are searching online for a “debt resolution attorney near me.” From handling your private loans to connecting you with student loan servicers, a debt resolution attorney can help you manage your debt and get on the road to financial freedom.
Furthermore, as we noted above, the limited waiver issued by the Department of Education to expand the criteria for loan forgiveness to include Federal Family Education Loans (FFEL) and Perkins Loans is set to expire on October 31, 2022. If you’re a government or nonprofit employee in Texas with FFEL or Perkins loans, contact a debt resolution law firm to see if you qualify before these expanded programs expire.
Ciment Law Firm, PLLC, Texas Consumer Protection, Is Your Debt Resolution Law Firm
At Ciment Law Firm, PLLC, our team of experienced debt resolution attorneys is on hand to answer all your debt and student loan-related questions. With the loan forgiveness waiver set to expire on October 31, 2022, call us today at 281-937-3949 or fill out our online form to schedule your free debt consultation. We serve clients across the entire State of Texas from our offices in Katy, Dallas, Austin, El Paso, San Antonio, and Houston.
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