What is loan forgiveness and how does it work?

What is loan forgiveness and how does it work?

Loan forgiveness is a program that cancels some or all of your student loan debt. It typically requires meeting specific criteria.

Who qualifies for loan forgiveness?

Eligibility varies by program, but generally, teachers, public service workers, and those in certain professions may qualify.

How do I apply for loan forgiveness?

You can apply through your loan servicer or the specific program's website. Make sure to gather necessary documentation.

Are there any tax implications for forgiven loans?

Yes, forgiven loans may be considered taxable income, but some programs, like Public Service Loan Forgiveness, are exempt.

Can I get partial loan forgiveness?

Yes, some programs offer partial forgiveness based on the number of qualifying payments or years of service.