What is student loan forgiveness?

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    Team StellarFi

    Federal student loan forgiveness is when some or all of your student debt is canceled if you meet certain requirements. 

    These requirements include being employed in an eligible profession for a fixed period and making on-time qualifying payments for a fixed period. Other factors include disability or being defrauded by your educational institution. Under these circumstances, your loan may be partially or completely discharged.

    There are usually three terms used for student loan forgiveness – discharge, cancellation, and forgiveness. They all essentially mean the same thing. However, some of the terms are used only in specific contexts. For example, if you are enrolled in a loan repayment program like Public Service Loan Forgiveness (PSLF), Saving for a Valuable Education (SAVE), or another income-driven repayment (IDR) plan and you have finished making the qualifying payments, all of your remaining debt is forgiven or canceled. 

    The term discharge is used only in the case of death, disability, or defrauding by your educational institution.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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