Definition
A feature of certain student loan plans where any remaining balance is forgiven after a set number of qualifying payments.
What to consider
- Stay organized with your financial records throughout the year.
- Plan your deductions and credits to minimize your bill.
- Consider professional help if your tax situation is complex.
Real world scenarios
- Struggling with high student loan payments, Alex switched to an income-driven repayment plan, with the hope that any remaining balance would be forgiven after 20 years.
Related terms
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