Can I get my private student loans forgiven? It is true that private loans tend to have higher interest rates for many borrowers, plus there are usually fewer repayment plans and options when compared to federal loans.
Can I Get My Private Student Loans Forgiven
If it is that you are struggling with your education debt, then it is that you may be wondering if private student loan forgiveness is an option. Private loans unfortunately are not eligible for many forgiveness programs. And with that being said, you should know that there may be other sources of private student loan help.
While federal student loans are eligible for programs such as Public Service Loan Forgiveness (PSLF), private loans, on the other hand, are not. The reason for this is that private student loans are issued by individual companies and not the government and it would also take congressional legislation to pass any blanket forgiveness measures. And any measure in question would very much likely have to allocate funds to pay lenders on behalf of borrowers rather than just simply absorbing the cost thus making it very much unlikely that any forgiveness measures would pass.
The only situations where private student loans can be forgiven are in cases of death or permanent disability. But even in those instances, discharge is solely dependent on the policy of your lender.
5 Ways to Get Private Student Loan Help
While it is true that private student loan forgiveness is not available, there are other mediums through which you can get help in paying off your debt. and by utilizing these tips, you can make your loans more manageable;
Career-Base Student Loan Repayment Programs
Although federal forgiveness programs that are based on employment are not available to private loan borrowers, you may however be eligible for career-based repayment assistance programs. These very programs in question are usually run by state governments or professional associations and will repay a portion of your loans but in exchange for a commitment to work in a high-need area. Careers that commonly qualify for these sorts of programs include nurses, doctors, dentists, teachers, and lawyers.
Location-Based Repayment Assistance
If it is that you are willing to relocate to another area, then you could get help repaying your private or federal loans. Some states/regions as well as counties offer special incentives in a bid to encourage people to move to specific spots. For instance
- Kansas rural opportunity zone
- Opportunity Maine
- Maryland SmartBuy
Find An Employer That Offers Student Loan Repayment
A growing number of employers are currently helping their employees with their student loan payments plan. Major companies such as Estée Lauder, SoFi, and Hulu will help to pay off a portion of your student loans as an added benefit, which is up to an annual or lifetime maximum. You should talk to your human resources department to see if your company has an employer student loan assistance program.
Contact Your Lender
If it is that you are struggling with your payments, then you should contact your lender. Even though private student loans are not eligible for loan forgiveness or even income-driven repayment (IDR) plans, lenders at most times have their very own programs to help borrowers avoid delinquency or default.
You may however be able to postpone your payments or even reduce your payments overall temporarily. For instance, the following lenders offer alternative repayment options:
- College Ave
- Sallie Mae
- Rhode Island Student Loan Authority
Consider Refinancing
If you are one of those borrowers that have high-interest private student loans and want to pay them off as soon as possible, then student loan refinancing can be a very useful strategy. But depending on your credit score and debt-to-income (DTI) ratio, you could easily qualify for a loan with a lower rate than you have right now, thus helping you to save money and then pay off your student loans faster ultimately.
For instance, let’s say that you had $40,000 in student loans at 6% interest and a 10-year repayment term. If you get to refinance your loans and then qualified for a seven-year term at 4% interest, you would end up saving more than $7,300 in interest charges—and then pay off your loans three years earlier than originally scheduled. You can also use a student loan refinancing calculator just to see how much you can save simply by refinancing your debt.
