There is no one-size-fits-all rulebook that dictates how student loan forgiveness programs work.
You may need to follow strict reporting protocols throughout the program until you become eligible for some programs, and other programs may require you to be in a certain profession or live in a certain state.
Because each program varies so much, you need to do extensive research so you know exactly what the requirements are. Some programs may have a big impact on your life, and you need to be prepared for the consequences and opportunity costs. We’ll discuss in this guide which student loan forgiveness plans are available and the main details of each program.
This is one of the most popular programs. Before you get too excited though, there are a lot of hoops to jump through to apply for PSLF. Additionally, the future doesn’t look too bright for this program: The GOP is actively trying to eliminate this program. In 2017, Republicans introduced the PROSPER Act that would eliminate PSLF. Regardless of whether or not it’s passed, it is highly likely that it will be phased out at some point. Even so, current students eligible for PSLF may be grandfathered into the program, at the exclusion of new student borrowers.
Income-driven repayment programs offer more than just student loan forgiveness. They’ll make your student loans more affordable in the short term as well by capping your monthly payments at 10-20% of your discretionary income, divided by 12.