FedLoan Servicing also known as MyFedLoan provides services to all those students who have taken federal student loans from the government of the United States of America in order to pursue their higher education. FedLoan provides support to the Department of Education of the United States of America. On its official website, FedLoan.com explains the various types of federal loans that are there out there for students to take, provides repayment options and explains to the students all they probably need to know about borrowing student loans and understand how the process happens. It also provides help regarding the life cycle of a loan, loans taken by parents, information for graduates and professional students and provides special options for service members of the country who have taken federal student loans.
FedLoan, in some cases, explains that sometimes loans repayment can be forgiven and explains the situations in which this particular option is available. This is known as Federal Loan Forgiveness and Federal Loan Discharge.
Special Programs where the Federal Loan Forgiveness and Discharge is applicable
Forgiveness or Discharge of loan is only provided to students who have managed to qualify to do a public service job or has managed to become a full-time public service employee. In some other cases, the person may be given forgiveness if he or she teaches at a low-income educational institute for 5 consecutive years.
The Public Service Loan Forgiveness: The Public Service Loan Forgiveness Program also known as the PSLF Program established in order to encourage more students who pass out of their colleges and universities to pursue jobs in the public sector of the United States of America or opt for public service employment. If the student has taken a Direct loan then he or she will be forgiven to repay the loan that was taken if he or she opts to serve the public. This is only applicable if the borrower has managed to make 120 monthly payments in their repayment period and these payments need to be considered as qualified by the federal government. The forgiveness will only be provided if the person who has borrowed the loan chooses to stay with the public employer when he or she has applied for the forgiveness.
Teacher Loan Forgiveness: A teacher loan forgiveness will be provided to that borrower who chooses to teach full-time for five consecutive academic years in a public owned elementary school or a low-income elementary school, or even a secondary school and completes the service. He or she can also opt to teach at any low-income educational service agency as well. If the borrower has taken a Direct Loan or the FDEL Program loan which is also known as the Federal Family Education Loan, then he or she will be excused for the forgiveness of $17,500.
If the borrower has a physical or mental impairment and he or she has been wounded as a service member of the country, then he or she will also be applicable for the discharge of repayment of the loan.