Debt forgivenesscan be specific to the lender. In general, it is a process that involves a lender or collector and the borrower. Both parties agree on a course of action for the debt. Whoever is trying to collect the loanforgives the remaining debt, and the borrower agrees to pay any amount they agree upon.
People also ask
What is debt forgiveness and how does it work?
Debt forgiveness is simple in theory: a lender forgives some or all of the debt you still owe on a loan. But this undeniably appealing concept almost always comes with strings attached.
How can I get my loans forgiven in half the time?
You can get your loans forgiven in half the time (or less), as compared to forgiveness based on participating in an income-driven plan, if you remain eligible for Public Service Loan Forgiveness.
How long do you have to make payments to get forgiveness?
2. Public Service Loan Forgiveness (PSLF) If you work full-time for a government or not-for-profit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you鈥檝e made 120 qualifying payments鈥攖hat is, 10 years of payments.
Is public service loan forgiveness the only way to get out of debt?
You鈥檝e probably heard of Public Service Loan Forgiveness (PSLF) if you have federal student loans. It鈥檚 a well-known program that eliminates some student loan debt for qualified borrowers. But it鈥檚 not the only way to lessen the burden of student loan debt.