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“ Student Loan Relief now available in New Hampshire! ”
FSLR iS commitTeD to helpinG americans EASE
the heavy burden of student Loan
Since the beginning of our organization more than 25 years ago, we’ve helped over 1 million people with their student loan debt problems. With our experience, we boast a 99% client satisfaction rate, making sure that our clients get all the available help that they need.
Not everyone can be qualified for federal student loan forgiveness. Only those who are public service employees and teachers are eligible. However, other relief options such as loan discharge and loan cancellation are available to people who are in different fields of work. Qualifying for federal student loan forgiveness, loan discharge, or loan cancellation grants you the right to not repay all or part of your loan.
Student Loan Forgiveness Programs
Know which one is available for you.
Public Service
Loan Forgiveness
Teacher
Loan Forgiveness
Loan
Discharge
Loan
Cancellation
ComparinG Student Loan
Forgiveness Programs
In most cases, there are other requirements to qualify for student loan forgiveness.
Throroughly learn about the two types of forgiveness programs before you commit to one.
With up-front forgiveness, part of your student loan debt is cancelled for each year of service, as it occurs. Even if you don’t finish the number of years of service to earn the entire forgiveness benefit, you will still be awarded with some student loan forgiveness for the time you served.
Examples of Up-front Forgiveness:
Loan Repayment Assistance Programs (LRAP), Perkins Loan Forgiveness
How up-front forgiveness could work:
Time Period Amount of Student Loan Debt Forgiven
End of Year 1 Lesser of: 20% of original loan balance or $7,500
End of Year 2 Lesser of: 20% of original loan balance or $7,500
End of Year 3 Lesser of: 20% of original loan balance or $7,500
End of Year 4 Lesser of: 20% of original loan balance or $7,500
End of Year 5 Lesser of: 20% of original loan balance or $7,500
With back-end forgiveness, your remaining debt is cancelled after a number of years of service. Only after completing a full-period of service will you earn a cancellation of your student loan debt.
Examples of Up-front Forgiveness:
Public Service Loan Forgiveness (PSLF)
How back-end forgiveness could work:
Time Period Amount of Student Loan Debt Forgiven
End of Year 1 0
End of Year 2 0
End of Year 3 0
End of Year 4 0
End of Year 5 Remaining loan balance (up to specific loan program limits)
Student Loan Forgiveness
and Income Taxes
Loan forgiveness that requires you to work in a particular occupation is tax-free, such as:
  • Public Service Loan Forgiveness
  • Teacher Loan Forgiveness
  • Other job-specific programs
Other types of student loan debt cancellation are treated as taxable income, leading to a potential tax liability, such as:
  • Income-based repayment plan forgiveness
  • Student loan repayment assistance programs
  • Student loan discharge for disability, death, closed school, etc.
Our
Recommendations
  • Thoroughly understand the details of each loan forgiveness program before making a commitment to one.
  • Follow the program rules regarding payments once you have chosen a forgiveness program.
  • If you discover that you ineligible for any forgiveness programs, contact your loan servicer for other possible options. You may also research the student loan discharge option for cancelling your debt.