It’s a question many of us have been asking for years.
But now the answer may be coming sooner rather than later.
The federal government is finally allowing people to get the forgiveness of student loan debts that they have paid off in full.
And that could have huge implications for the country’s future.
While many student loan borrowers will have to repay the entire amount in full, there is an option that lets borrowers get some of that money back with a percentage of their loan balance.
The government said in a statement that borrowers who want to get some relief can apply for the forgiveness program, which is now available to those who are in good standing with their student loan servicer.
If you’ve been waiting for this for some time, here’s what you need to know.
Here are the basics:The Federal Family Education Loan Program (FFELP) is the government’s main loan forgiveness program for student loan students.
The program allows borrowers to receive up to $3,000 in forbearance, which can be used to pay down their loan and refinance at a lower rate.
The program is capped at $5,000, so if you have a total debt of $40,000 and owe $4,000 on your first loan, you could get up to a $2,000 forgiveness.
If you owe more than that, you can only get $1,500.
There are several eligibility requirements to qualify.
You have to be in good health, be 18 years old, and have paid your first monthly student loan balance in full within the past three years.
You must be enrolled full time at a post-secondary institution, and you must be in the top third of income earners.
There is a $300 application fee, but you must pay that fee in full by Dec. 31.
If your income is below that threshold, you’ll have to pay a $200 application fee.
To qualify, you must have earned at least $60,000 by the end of the past year.
The federal government requires all borrowers with federal student loans to report their net worth to the federal government.
If your net worth is less than $80,000 — meaning you’ve taken out a loan for $15,000 or less — you can apply to the FFELP program.
If all of that is not enough, you have to have a good record.
The government will only consider good, current, and trustworthy information if it comes from the servicer, which means you don’t have to prove any financial problems or criminal convictions.
You also have to meet certain requirements to be eligible for the program.
You need to be a graduate of a postsecondary institution or graduate school in the United States, you needn’t have a history of criminal behavior, and your income has not exceeded $100,000 for at least six months prior to applying.
If that doesn’t sound too tough, you don.
It’s only $3.25 per $1 you pay down the loan.
You don’t need to prove you’re making a profit, but the government does consider your income to be enough to qualify you.
The application process is very simple.
Simply send in the completed application, the documentation of your income, and a check for $300.
The process takes about three weeks.
Once you receive the check, the servicing company will send you an email with a verification code.
You’ll then have a couple of days to fill out the form.
Then you’ll be asked to confirm your payment.
You can’t apply for forgiveness online, but your student loans will be forgiven through a third-party clearinghouse called ClearPay.
If the check doesn’t arrive in time, the loan servancer will mail you a second check, with a $500 processing fee.
The fee is waived for borrowers who pay their loan back within 30 days.
If that deadline passes, the borrower has to pay another $500 fee.
That $500 refund can be applied toward a down payment on a home.
You don’t really need to have one.
But it’s a nice perk if you can get the first one down the road.
As with most forgiveness programs, there’s a maximum amount that can be forgiven.
You could receive a $1.5 million refund.
You’d have to make a minimum of $25,000 down payment, which could be a little more or a little less depending on how much you owe on the home.
The FFELPS eligibility guidelines are pretty generous.
It will forgive up to 80 percent of the total principal amount of your loan, and it doesn’t apply to people who are under 30 or over 65.
If the borrower is under age 60, the program is only available to people with incomes below 150 percent of poverty level.
In the meantime, it’s easy to forget about the debt.
There’s no grace period.
And once the money is forgiven, the government will be collecting on the money.
That means you could owe more money after you’re