If you have Stafford loans, then certain types of student loan forgiveness may only be available for you if consolidate said loans under the newer William D. Ford Federal Direct Loan Program. Review your options for student loan forgiveness to determine whether your Stafford loans are eligible.

Understanding Stafford Loans

澳洲幸运5开奖号码历史查询:Stafford loans were part of the 澳🤪洲幸运5开奖号码历史查询:Federal Family Education ꦺLoan (FFEL) program, which ended in 2010. The 澳洲幸运5开奖号码历史查询:Federal Direct Loan Program replaced the FFEL program, and no new Stafford loans have been issued since July 2010. However, some people might still refer to direct loans as Stafford loans, even though they aren't part of the current program.

Types of Stafford Loans

Similar to today's direct loans, there were two types of Stafford loans:

• Subsidized loans: The federal government pays the interest that accrues on subsidized loans while the borrowers are in school and during the 澳洲幸运5开奖号码历史查询:grace period.
• 澳洲幸运5开奖号码历史查询:Unsubsidized loans: Interest also accrues on unsubsidized loans while borrowers are in school. The accrued interest is eventually capitalized, adding it to the borrowers' loan balance at the end of their grace period.

Some people and schools also informally refer to subsidized and unsubsidized direct loans as Stafford loans. New federal student loans made today, whether subsidized or unsubsidized, aren't Stafford loans.

Stafford Loan Forgiveness Options

Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness (PSLF) is a debt cancellation program that requires borrowers to make 120 qualifying payments while working full-time for an eligible nonprofit or government agency, after which their remaining federal student loan balance is forgiven.

If you have Stafford loans, they're ineligible for PSLF unless you consolidate them into a 澳洲幸运5开奖号码历史查询:direct consolidation loan first.

Teacher Loan Forgiveness

澳洲幸运5开奖号码历史查询:Teacher Loan Forgiveness can result in forgiveness of up to $17,500, so long as your Stafford loans were issued after Oct. 1, 1998. You must teach for five consecutive academic years and be considered highly qualified.

It's important to note that you can't be working toward both PSLF and Teacher Loan Forgiveness at the same time. If you pursue Teacher Loan Forgiveness, the qualifying payments for PSLF won't start until after you finish the required five-year period of academic service.

Other Forgiveness Programs

There are additional forgivenes𒁃s program🌄s available for borrowers in certain professions or who meet other criteria.

For example, you might be eligible for forgiveness under the NHSC Students to Service Loan Repayment Program if you work in a health care profession as a nurse, doctor, dentist, or other provider in a designated Health Professional Shortage Area (HPSA). However, because you're required to be in school full-time during the application year, getting old Stafford loans forgiven might not be possible.

There are various forgiveness and discharge programs for military members, lawyers, etc., though many𒐪 are🅠 only available for direct loans. You may also be able to qualify for a debt discharge if your school defrauded you or if you become permanently disabled.

Finally, you might be eligible for forgiveness using an 澳洲幸运5开奖号码历史查询:income-driven repayment (IDR) plan after 20 or 25 years of qualifying payments. However, Stafford loans issued under the FFEL program aren't eligible for IDR plans unless you consolidate them into direct loans.

The Bottom Line

Even though new Stafford loans are no longer available, some borrowers are still making payments on the federal student loans they took out before 2010. If you're one such borrower, review your options to determine whether consolidating your Stafford loans to access more federal forgiveness programs would make sense for your financial situation.