Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
SCF
Posts: 1,104
Registered: ‎06-09-2008
Re: DoE Loans Transferred To Avoid 120 Consecutive Payments?

There are a number of forgiveness programs out there, along with some proposed changes/additions.

 

The 120 payment forgiveness is for people employed in a public service profession (nurse, police officer, non-profit agency, etc.).  You can find details on that here: http://www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

 

Only loans received through Direct Loans are eligible, but you can consolidate your FFEL and Perkins loans to make them eligible, all the details are at the link.  Transferring servicers wouldn't reset the clock, you just have to document that on the paperwork that you fill out when you request the forgiveness.

 

There's also a program that forgives your remaining balance after 25 years of payments, but since most student loans are on a 10 or 15 year timeline, this is mostly meant for people with high loan burdens and a low payment through an income-based repayment plan.

 

I think one or more of the bills floating around had proposed a forgiveness for anyone after 10 years, and public service after 5, but I don't think any of those bills have had any serious consideration from Congress.