Credit Card Debt Forgiveness
While "forgiveness" in the traditional sense doesn't exist for credit card debt, there are powerful debt relief programs that can significantly reduce what you owe and help you become debt-free faster. These programs involve negotiating with your creditors to settle your debt for less than the full amount.
How Does Credit Card Debt Relief Work?
Our team of experts can help you explore several options:
- Debt Settlement: We negotiate with your credit card companies on your behalf to accept a lump-sum payment that is less than your total balance. This can cut your debt by a substantial amount.
- Debt Consolidation: You take out a single new loan to pay off all your credit cards. This simplifies your payments into one monthly bill, often with a lower interest rate, saving you money and helping you pay off your debt faster.
- Debt Management Plan (DMP): We work with a credit counseling agency to create a structured plan to repay your debts over 3 to 5 years, often with reduced interest rates.
Is Credit Card Debt Relief Right for You?
This could be a powerful solution if you are struggling with high-interest credit card debt and find it impossible to make progress on your own. Our specialists can review your financial situation to see if you qualify.
Call to Discuss Your Credit Card DebtPublic Service Loan Forgiveness (PSLF)
The PSLF Program is designed to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance of your Direct Loans after you have made 120 qualifying monthly payments while working for a qualifying employer.
Key Eligibility Requirements:
- Qualifying Employer: You must be employed by a U.S. federal, state, local, or tribal government or a not-for-profit organization.
- Full-Time Employment: You must meet your employer's definition of full-time or work at least 30 hours per week.
- Eligible Loans: Only Direct Loans are eligible. We can help you consolidate other loan types.
- Qualifying Payments: You must make 120 separate, on-time payments on a qualifying repayment plan.
Teacher Loan Forgiveness
This program is designed to encourage individuals to enter and remain in the teaching profession. If you teach full-time for five complete and consecutive academic years in a low-income school, you may be eligible for forgiveness of up to $17,500.
Eligibility Checklist:
- You must be a highly qualified teacher.
- Your five years of teaching service must be consecutive.
- The school must be listed in the Teacher Cancellation Low Income (TCLI) Directory.
Closed School Discharge
If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for a 100% discharge of your federal student loans taken out for that program. This prevents borrowers from being burdened with debt for an education they were unable to complete.
Who is Eligible?
- You were enrolled when your school closed or on an approved leave of absence.
- You withdrew within 180 days of the school's closure.
- You did not complete your program through a "teach-out" at another school.
Income-Driven Repayment (IDR) Forgiveness
IDR plans make your debt more manageable by setting your monthly payment based on your income. Any remaining loan balance is forgiven after 20 or 25 years of payments.
Key IDR Plans:
- Saving on a Valuable Education (SAVE) Plan
- Pay As You Earn (PAYE) & Income-Based Repayment (IBR) Plans
- Income-Contingent Repayment (ICR) Plan
We can help you choose the right plan and manage your path to forgiveness.
Explore Your IDR OptionsTotal and Permanent Disability (TPD) Discharge
If you are unable to work because of a physical or mental impairment, you may qualify for a TPD discharge, which relieves you from repaying your federal student loans.
How to Demonstrate Eligibility:
You can prove your eligibility with documentation from the U.S. Department of Veterans Affairs (VA), the Social Security Administration (SSA), or a physician's certification.
Get Help With Your TPD ApplicationBorrower Defense to Repayment
You may be eligible for discharge of your federal student loans if the school you attended misled you or engaged in other misconduct, such as making false promises about job prospects or credit transfers.
Application Process:
You must submit a detailed application and provide evidence to support your claim. Our team can help you build a strong case.
Discuss Your Borrower Defense CasePerkins Loan Cancellation
The Federal Perkins Loan Program has its own set of cancellation benefits for borrowers who work in certain public service fields, such as teaching, law enforcement, or nursing.
A percentage of the loan is canceled for each year of full-time service, often leading to 100% cancellation after five years. We can help you determine if your Perkins Loans qualify.
Check Perkins Cancellation RulesOptions for Military Service
Your service in the U.S. armed forces makes you eligible for several valuable student loan benefits, including interest rate caps and progress toward Public Service Loan Forgiveness (PSLF).
Key Military Benefits:
- Servicemembers Civil Relief Act (SCRA) interest rate cap of 6%.
- Active duty service counts as qualifying employment for PSLF.
- Potential for DOD loan repayment programs.
Forgiveness vs. Cancellation vs. Discharge
Understanding these terms can help you identify which programs you might be eligible for.
- Forgiveness/Cancellation: Typically earned based on your profession (e.g., PSLF, Teacher Forgiveness).
- Discharge: Granted due to circumstances beyond your control (e.g., Disability, Closed School).
Let us clarify which path is right for you.
Call to Understand Your OptionsHow to Apply for Forgiveness
The application process is unique to each program. The key is to identify the correct program, gather the right documents, and submit the proper forms.
Our Process:
- We'll help you identify all your loan types.
- We'll match your circumstances to the best program.
- We'll assist you in preparing and submitting all necessary paperwork.
- We'll help you keep meticulous records and stay on track.
Frequently Asked Questions
Under current federal law (through 2025), forgiven student loan debt is not considered taxable income. However, some states may have different rules. It's always best to consult a tax professional.
When your loans are forgiven or settled, the accounts are closed with a $0 balance. This is generally positive for your credit score as it reduces your total debt. There might be a minor, temporary dip as an account is closed, but the overall effect is beneficial.
While you can apply for federal programs on your own for free, the process is often complex, confusing, and time-consuming. Many people choose to work with experts like us to ensure their applications are prepared correctly, submitted on time, and that they find the best possible program for their situation, saving them time and potentially thousands of dollars.
The federal forgiveness programs described here do not apply to private student loans. However, we may still be able to help you negotiate a settlement or find other relief options with your private lenders. Call us to discuss your specific situation.