If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.

The Federal Family Education Loan Program (FFELP)

Many students who attend certain schools in the U.S. receive Direct Subsidized and Unsubsidized Stafford Loan funds. If you work at one of those schools, you may be able to have those loans forgiven after 10 years.

The Federal Perkins Loan Program

Some colleges and universities offer financial aid through the Perkins Loan Program. If you work for a company or participate in one of these programs, you may be able to have your loans forgiven after 10 years if you meet certain conditions.

State and Local Student Loans

Many of the loans you take out to attend a state or local university or community college will qualify for discharge through the Educational Assistance Forgiveness Program (EAFIP). The EAFIP forgiveness is only available to students who attend a college or university in a state that has passed an EAFIP law that qualifies for the program, if you’d like to get all the details, find more info here. 

If you meet the standards of the EAFIP law in your state, you can begin the process of having all or part of your student loans discharged after five years.

Your Student Loan Repayment Plan

If your student loans don’t have any repayment plans in place, and you decide you need to take out additional loans to continue your education, you’ll have to make some tough decisions. The best option may be to use a loan consolidation or repayment plan.

A consolidation loan reduces your monthly payments and allows you to pay off your loans over time instead of having to make monthly payments on them.

You may be able to take out a consolidation loan to help pay for your loan repayment if you:

• Weren’t able to afford a bigger loan.
• Have a large balance you wish to pay down.
• Wanted to consolidate federal loans into a private loan and get lower interest rates.

You may also be eligible for a repayment plan, which you can apply for through your student loan servicer. This means that your monthly payments will be smaller and you may be able to reduce your monthly payment to something more manageable. The repayment plans vary based on your situation and what you want out of your student loans.
The Most Common Student Loan Repayment Plans

Many student loan repayment plans are available through your student loan servicer and might be easier for you to understand. But here are the main student loan repayment plans:

You can check the terms of your student loans with your student loan servicer. You may have an option to consolidate or pay off your loans.

Reviewing Your Student Loan Repayment Options

Once you understand your options and find the type of student loan repayment plan that best fits your situation, you may want to call a few student loan lenders to talk to them about what repayment plans are available.