Do you have student loans? You may qualify for debt forgiveness

Category: Education

Three Students Taking a Test

Have you started falling behind on your student loan payments because they’ve simply become too difficult to keep up with? Although most borrowers will be required to eventually pay back what they owe in their entirety, in some situations, it’s possible to have some or all student loan debt forgiven. The following are some ways you could potentially qualify for student loan debt forgiveness:

Teacher Loan Forgiveness

If you’ve worked as a teacher full-time for five years in a row and at an elementary school or educational service agency, you may be eligible to have up to $17,500 of your student loan debt forgiven. However, there are some exceptions to Teacher Loan Forgiveness: loans taken out before October 1st, 1998 are not eligible forgiveness, and neither are PLUS loans.

Public service loan forgiveness

As a public service worker, you may qualify to have some or all of your student loan debt discharged. To be eligible, you must have made at least 120 payments since October 1st, 2007 on your Direct Loans and must be current with your payments. If you think your position as a public service employee might qualify you for loan forgiveness, ask your lender for more information.

Discharge by filing bankruptcy

Unlike other debts, student loan debt is usually one of the few that actually cannot be discharged through bankruptcy. However, if you are filing for bankruptcy and you also have a lot of student loan debt that you’re hoping to discharge as well, you can plead your case in bankruptcy court. You may be able to discharge some or all of your debt through your bankruptcy filing if you’re able to prove that paying back your student loans would cause a significant financial hardship for you and/or your family.

Total and Permanent Disability (TPD) discharge

If you are permanently disabled, you may qualify for student loan debt forgiveness through a Total and Permanent Disability (TPD) discharge. To be deemed eligible, the U.S. Department of Education reviews applications for discharge on a case-by-case basis. The following student loans are potentially eligible for forgiveness through a Total and Permanent Disability (TPD) discharge: Federal Family Education Loans, William D. Ford Federal Direct Loans, and Federal Perkins Loans. Also, if you received a TEACH Grant and were unable to fulfill the requirements as a result of your permanent disability, you may not be required to pay back the grant money.

If you’re denied

If your request to discharge student loan debt was denied, you usually won’t be able to appeal the decision and most of the time, decisions are final. As such, you’ll still be required to pay back the remainder of your student loan debt. However, you may be able to appeal with the U.S. Department of Education if you are seeking a forged signature discharge or false certification discharge.


Do you have student loan debt that you need to pay back? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able to help. Contact Peachtree Financial Solutions today to learn more about selling some or all of your future payments for a lump sum of cash.


Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.

Tags: bankruptcy, debt forgiveness, Student Loans

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