(Click on the image for the Consumer Reports article)
- Two-thirds of college graduates leave school with student loans averaging $29,000, and many struggle to pay that debt back. But while millions of borrowers could qualify for loan-forgiveness programs to erase some or all of what they owe, only a fraction of those eligible take advantage of them.
- Too many students "aren’t aware that these programs even exist," says Betsy Mayotte, president of The Institute of Student Loan Advisors (TISLA), a nonprofit that provides free one-on-one counseling for student loan borrowers.
- The 12-year-old federal Public Service Loan Forgiveness program (PSLF) is one of the bigger programs. Under PSLF you can wipe out your remaining student debt after making 10 years' worth of on-time payments if you work in a qualifying public-sector job.
- But there are more than 100 federal and state-based programs, though smaller or more specifically targeted, that can help you shed debt faster. There are also a number of special situations in which you can get your loans discharged without penalties.