How to Get $10000 Loan Forgiveness: Step by Step Guide

Hello friends, welcome to our blog Kabbage Loan Guide. Friends, As you know, completely forgiving a loan of $10,000 is a huge challenge in itself. But, 2 months back I had taken a loan of $10000 and got it forgiven. So today I am going to share my experience with all of you. In this article, I will tell you how to get $10000 loan forgiveness.

At present, Mr. Biden’s announcement regarding loan forgiveness is praiseworthy. But many people do not know how to get it forgiven, how to apply, what the requirements are, and who is eligible for it. Today, the answers to all your questions are going to be found in this article.

What is the $10000 Loan Forgiveness Program?

The $10,000 Loan Forgiveness Program was part of Biden’s student debt relief plan aimed at canceling up to $10,000 of federal student loan debt for borrowers earning less than $125,000 annually. Pell Grant recipients could receive up to $20,000 in forgiveness. However, in June 2023, the Supreme Court blocked this plan, and it was never implemented.

However, the administration has managed to provide targeted relief to certain borrowers:

• Public Service Loan Forgiveness (PSLF): Over 850,000 borrowers have received debt forgiveness through improvements to the PSLF program, which benefits individuals working in public service jobs (teachers, nurses, government workers, etc.).
• Income-Driven Repayment (IDR) Plans: Under the new SAVE Plan, borrowers can have their remaining loan balance forgiven after 20-25 years of repayment based on income.
• Borrower Defense to Repayment: Borrowers defrauded by certain for-profit colleges have also seen debt cancellations.

How to Get $10000 Loan Forgiveness?

Since the $10,000 Loan Forgiveness Program was blocked by the Supreme Court¹ in June 2023, broad forgiveness of $10,000 is not available. However, you can still seek loan forgiveness through other programs:

Public Service Loan Forgiveness (PSLF):

If you want to get $10,000 loan forgiveness, apps can be a good option. To apply, first visit the StudentAid website and gather all the information about it. You will find detailed guidance there. After that, follow the steps mentioned on the site to apply for loan forgiveness. Once approved, your $10,000 loan will be forgiven.

The process of applying is explained in the video below:

Income-Driven Repayment (IDR) Plans:

The $10,000 Loan Forgiveness Program was blocked by the Supreme Court, but if you still want to get $10,000 loan forgiveness, you have another option: Income-Driven Repayment (IDR) Plan Request. This plan is available on the StudentAid website and is designed for people with lower monthly income.

To apply for this loan forgiveness program, you need to provide proof of income and meet other eligibility requirements. After that, you can apply directly on the StudentAid website. You can find complete details on the website, and through this program, you may still get your $10,000 loan forgiven.

The process of applying is explained in the video below:

Borrower Defense to Repayment:

If you want to get your $10000 loan forgiven through the Borrower Defense to Repayment program, it’s designed for people who were misled or defrauded by their school. This program allows you to apply for loan forgiveness if your school engages in misconduct related to your loan or educational program.

To qualify, you need to provide evidence showing how the school violated laws or misrepresented important facts about the program. You can apply for this on the StudentAid website, where you’ll also find full details. If approved, this program may forgive your entire loan amount.

The process of applying is explained in the video below:

What are the Eligibility Requirements for $10,000 Loan Forgiveness?

The eligibility requirements for the $10,000 Loan Forgiveness that was announced by Joe Biden were different, but there’s no point in discussing those now, as it’s unlikely that the program will start again. If you’re looking to apply for $10,000 loan forgiveness now, you first need to decide which program you’re using for forgiveness.

We’ve already mentioned three running forgiveness programs you can use to get your $10,000 loan forgiven:

1. Public Service Loan Forgiveness (PSLF)
2. Income-Driven Repayment (IDR) Plans
3. Borrower Defense to Repayment

You can check the eligibility requirements below.

Eligibility Requirements for PSLF.

Eligibility Requirements for IDR.

Eligibility Requirements for Borrower Defense to Repayment

How Do I Know if My $10,000 Loans Will Be Forgiven?

Whenever you apply for $10000 loan forgiveness to your loan provider. So when your application is approved, they inform you on their own. But if you want to know the status sometime in the middle, then you can go to the same loan provider or Student Aid website.

But remember, until your $10,000 loan forgiveness application is fully approved and your loan is completely forgiven, make sure to pay your EMI (monthly payments) on time. This will help keep your credit score in good shape and prevent your payments from bouncing. Sometimes loan forgiveness applications get approved quickly, but other times it can take longer.

How long does it take to approve a $10000 Loan Forgiveness?

The time it takes to approve a $10,000 loan forgiveness can vary, as there is no set timeline for approval for the methods we’ve discussed. The approval duration depends on several factors, which can differ for each program. To get accurate information on approval timing, it’s best to contact the Federal Student Aid Department directly.

Conclusion.

In conclusion, while the original $10,000 loan forgiveness program proposed by President Biden faced challenges and was ultimately blocked, there are still viable options for borrowers seeking relief. Programs like Public Service Loan Forgiveness, Income-Driven Repayment Plans, and Borrower Defense to Repayment offer pathways to loan forgiveness for eligible individuals.