Home Blog What’s the Difference Between Student Loan Forgiveness and Discharge?

What’s the Difference Between Student Loan Forgiveness and Discharge?

Many people in the US deal with huge student loan problems. Student loans remain one of the biggest loans people face throughout their adult lives. When this loan becomes unbearable, people often turn to any bankruptcy law firm in their area for advice. However, they soon find out that student loans are one of the most notorious loans an individual can rack up. It is almost impossible to discharge student loans. In fact, most attorneys discourage their clients from trying to discharge their student loans through bankruptcy. A good piece of advice from most bankruptcy lawyers is for their clients to use bankruptcy to get rid of other debts while freeing up their finances to cater to their student loan repayment.

While bankruptcy may not offer you the desired outcome, there are other ways by which you can resolve your predicament. Student loan forgiveness offers you a way out by removing your obligation to repay the loan. Student loan discharge, on the other hand, eliminates the loan completely. To qualify for either of these options, there are some requirements to be met.

Student Loan Discharge

A student loan can be discharged in a few situations. What this means is that the government is agreeing to discharge your loans. Your student loan debt gets automatically discharged if you die, however, you don’t want that to happen. You may also qualify for a discharge if your spouse dies. Other conditions wherein the government can discharge your debt include when you suffer a long-term or permanent disability if you can prove that someone else has stolen your identity, or if you have been fraudulently misinterpreted. For fraudulent misinterpretation, you must be willing to prove that your school had fraudulently pushed you into signing for the loan with the promise that your career path can easily pay back the loan.

When considered from the outside, getting a student loan discharge is a lot more difficult than you may expect it to be. This leaves you with the other option, student loan forgiveness.

Student Loan Forgiveness

Your student loans may be forgiven if you have picked up a career path in certain fields and for a certain number of years. The government essentially offers student loan forgiveness to you in exchange for what you can offer. If you wish to explore the student loan forgiveness path, two primary programs can get you there fast; Teacher Loan Forgiveness and Public Service Loan Forgiveness.

Under the Teacher Loan Forgiveness, you will be required to have served as a teacher in a school that qualifies for the loan forgiveness program for no less than five years. In that time, you will be required to have met certain other criteria. If you qualify for the loan forgiveness after this period, you will have access to as much as $17,500 debt forgiveness. If your student loan debt is much more than that, you’ll need to pay off the rest.

Under the Public Service Loan Forgiveness program, you’ll be required to have served in the public offices for at least 10 years. In those years, you’ll be required to have made monthly repayments towards paying off your student loans. For this kind of student loan forgiveness, you may choose to take up a job as a firefighter, police officer, doctor, social worker, lawyer, or nurse.

If you wish to learn more about getting rid of your debts, visit https://azbankruptcysolutions.com/mesa

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