3 Types of Student Loan Forgiveness Borrowers Often Overlook

  • There are many types of student loan forgiveness other than Biden’s recent forgiveness plan.
  • Student loan expert Sonia Lewis says there are three types of forgiveness that are often overlooked.
  • Some states, like Maine and Kansas, offer student loan forgiveness to entice people to move there.

Student loan borrowers across the country are patiently waiting until October to file their student loan forgiveness applications to receive up to $20,000 in debt relief.

However, Sonia Lewis, founder of Student Loan Doctor LLC, says there are several other ways to get your loans forgiven right now. Over the past nine years, Lewis has helped more than 20,000 people navigate the federal student loan system, including civil service loan forgiveness, through courses and one-on-one coaching.

She told Insider, “I wish I could sit down with everyone in their living room and get them to ask ‘for forgiveness.’ According to Lewis, there are three forms of student loan forgiveness that are commonly overlooked.

1. Exit from total and permanent disability

If a permanent disability prevents you from working, you may be eligible for full forgiveness of your federal student loans.

Lewis explains: “I had a young woman I worked with, she has a tumor that regrows every three to six years in her brain. When this tumor grows back, it cannot work three to six months in a row. This means inconsistent work, which could qualify her to get rid of all her debt. »

To be eligible for total and permanent disability release, you will need to provide a letter from a physician stating that you are unable to work regularly due to your disability. “You shouldn’t worry about paying off a student loan on top of your health,” adds Lewis.

2. Profession-specific programs

Nurses, doctors, public defenders, and teachers may be eligible for student loan forgiveness programs in their state. Here are occupation-specific rebate programs in areas with the highest average student loan debt, according to the Education Data Initiative:

3. State-Specific Programs

Lewis recommends doing a simple Google search with “[your state] + Student Loan Forgiveness” to find all options available in your state.

She says, “Some states offer incentives, like, ‘Hey, move here! We’ll give you $20,000 to move here “because they need labor.”

Here are some examples of state programs that give residents money for their loans:

  1. Michigan State Loan Repayment Program for Medical, Dental, and Mental Health Care Providers
  2. Kansas Student Loan Repayment Assistance in Rural Opportunity Areas
  3. Maryland SmartBuy 3.0 Program Offers Homebuyers Up to 15% of the Purchase Price of a Home to Pay Off Outstanding Student Loan Debt
  4. Opportunity Maine Tax Credit provides Maine residents with tax credits to offset the cost of student loans.

And don’t forget: the Department of Education offers a number of forgiveness options for federal student loan borrowers, including PSLF and income-contingent repayment.

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