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Although Private Student Loan Forgiveness Does Not Exist, Consider the Following Alternatives from PaydayNow

Private loans often have higher interest rates and fewer repayment plans and hardship choices than government loans.

If you’re struggling to pay off your college debt, you may be asking about private student loan forgiveness. Regrettably, private loans are ineligible for the majority of forgiveness schemes. There may, however, be other sources of private student debt assistance.

Private Student Loans: Can They Be Forgiven?

When it comes to student debt, you may either borrow from the federal government or from private lenders. The United States Department of Education provides federal student loans, while banks, credit unions, and internet lenders offer private student loans. This distinction is what makes private student debt forgiveness so elusive.

While federal student loans qualify for programs such as Public Service Loan Forgiveness (PSLF), private student loans do not. Because private student loans are issued by private corporations rather than the government, any broad cancellation measures would need legislative action. Additionally, any steps would almost certainly require allocating money to pay lenders on behalf of borrowers rather than just absorbing the cost, making any forgiveness measures hard to succeed.

At the moment, the only circumstances in which private student debts may be forgiven are in the event of death or permanent disability—and even then, discharge is often conditional on your lender’s policy.

Five Methods for Obtaining Private Student Loan Assistance

While private student loan forgiveness is not an option, there are other methods to get assistance with debt repayment. Utilize these five techniques to help you handle your debts more effectively.

1. Programs for Repayment of Student Loans Based on a Career

While federal employment-based forgiveness programs are not accessible to private loan borrowers, you may qualify for career-based repayment assistance programs. These programs, which are often administered by state governments or professional groups, will refund a part of your student debts in return for your pledge to work in a high-need region.

Nurses, physicians, dentists, teachers, and attorneys are often eligible for these programs. Consider the following examples:

Loan Repayment Program for Nurse Corps Members. If you are a registered nurse, advanced practice registered nurse, or nursing faculty member, you may be eligible to have up to 85 percent of your debts returned via this program. To be eligible, you must commit to working at a facility identified for urgent shortages.

Teacher Loan Forgiveness in New York State. If you work as a teacher in a primary or secondary school in New York, you may qualify for up to $20,000 in student loan repayment help. The program’s guidelines require that you agree to teach in a difficult-to-staff location or in a high-need topic.

Assistance with Repayment of Florida Bar Loans. This program assists staff lawyers hired by legal help groups that receive grant funds in repaying school loans. Attorneys who qualify for the program may get up to $5,000 per year to help repay their debts.

Contact your state education agency or professional organization to see whether you qualify for student debt help programs.

2. Assistance with Repayment on a Location-by-Location Basis

If you are willing to move, you may qualify for assistance with repaying your private or government debts. Certain governments and counties provide particular incentives to entice residents to relocate to certain areas. For instance:

Rural Opportunity Zones in Kansas.

Individuals who relocate to selected rural communities in Kansas may qualify for up to $15,000 in state-funded student loan repayment help. Additionally, you may be entitled to an income tax exemption, which makes the relocation even more attractive.

Opportunity Maine. College graduates who attended a Maine institution and choose to remain and work in the state may be eligible for income tax credits to repay their student loan payments, up to an annual maximum.

SmartBuy Maryland. Maryland’s SmartBuy program assists borrowers in repaying school debt and achieving homeownership. Eligible candidates may receive up to 15% of the purchase price of their property to pay off student loan debt (up to a maximum of $30,000).

Consult your state department of commerce to see if your region has a comparable program.

3. Locate a Company That Provides Student Loan Repayment

Employers are increasingly assisting their workers with student debt payments. As an extra advantage, major firms such as Estée Lauder, SoFi, and Hulu will pay down a percentage of your student debts, up to an annual or lifetime limit. Consult your human resources department to see if your firm participates in an employer-sponsored student debt help program.

4. Make Contact With Your Lender

According to at this Bad Credit OK notes, If you are having difficulty making your payments, contact your lender. While private student loans are not eligible for debt forgiveness or income-driven repayment (IDR), lenders often provide their own programs to assist students in avoiding delinquency or default.

You may be able to postpone or lower your payments temporarily. For instance, the following lenders provide alternate methods of repayment:

College Ave. Borrowers on College Ave. may qualify for up to 12 months of hardship forbearance.

Miss Sallie Mae. Sallie Mae permits some borrowers to postpone payments if they are returning to school, doing an internship, or completing a residency.

Student Loan Authority of Rhode Island (RISLA). RISLA, which loans borrowers nationally, is one of the only private lenders that provide a repayment option depending on income.

5. Take into account Refinancing

If you have high-interest private student loans and want to repay them quickly, student loan refinancing may be a viable option. Depending on your credit score and debt-to-income (DTI) ratio, you may be eligible for a loan with a lower interest rate than the one you now have, allowing you to save money and pay off your student loans more quickly.

For instance, suppose you owed $40,000 in student loans with a 6% interest rate and a ten-year payback period. If you refinance your loans and qualify for a seven-year term at 4% interest, you’ll save more than $7,300 in interest charges—and pay off your debts three years sooner than initially planned. A student loan refinancing calculator will help you determine how much money you can save by refinancing your debt.

Shop around and get estimates from various student loan refinancing lenders to obtain the best rate.


While private student loan forgiveness is not a possibility, there are many programs available to assist you in repaying your debt. Additionally, you may qualify for alternate payment plans or student loan refinancing to help you pay off your debt more quickly. If you’re having difficulty making your payments or need assistance understanding your repayment plan, speak with your lender about your choices.