Definition
A program that cancels some or all of your student loan debt, often in exchange for working in a particular field or meeting certain criteria.
What to consider
- Research the program thoroughly to see if you qualify.
- Keep a detailed record of your qualifying payments.
- Plan your career moves with the forgiveness requirements in mind.
Real world scenarios
- After 10 years of teaching in a public school, Francis qualifies for loan forgiveness, wiping out much of his remaining balance.
- Melissa consistently makes income-based payments, hoping to see part of her debt forgiven once she hits the program’s eligibility window.
- Reconciling her records, Lisa ensures each payment is credited properly so she doesn’t miss out on ultimate forgiveness due to technical errors.
Related terms
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