Truck Drivers don’t have a specific student loan forgiveness program. However, they may be able to get their student loans forgiven through the Income-Based Repayment (IBR) plan. Under IBR, truck drivers can have their student loan debt forgiven after making 20 years of qualifying payments
Truck drivers spend a lot of time on the road, which causes them to get behind on their student loan payments owing to their hectic schedule.
If you have fallen behind on payments or you are having your wages garnished. Check out How to Prevent Student Loan Wage Garnishment: Before and After It Begin.
Back to student loan forgiveness for truck drivers, like I was saying in the beginning there are repayment plan options to lower your monthly payments and get forgiveness at the end of the term.
Continue reading to learn more about the 5 Student Loan Repayment Programs.
1. Standard Repayment Plan
The Standard Repayment Plan is the plan that most students are on. The student loan repayment period is 10 years and the student will make fixed monthly payments.
The monthly payment amount will be based on your loan balance and interest rate. This repayment plan is good for those who want to pay off their loans quickly.
Eligible Loans
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loans
- All PLUS Loans
- All Consolidation Loans (Direct or FFEL)
2. Graduated Repayment Plan
The Graduated Repayment Plan starts with smaller monthly payments that increase every two years. This repayment plan is also 10 years long, but it gives you more time to pay off your student loans.
Your monthly payment amount will be based on your loan balance and interest rate. This repayment plan is good for those who want to start small and increase their payments over time.
Eligible Loans
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loans
- All PLUS Loans
- All Consolidation Loans (Direct or FFEL)
3. Income-Contingent (ICR)
In this plan, the borrower would make payments based on their income, family size, loan balance, and interest rate. Payments would be adjusted each year. This repayment plan is also 20 years long
ICR may be a good choice for you if you can’t make standard payments or if you want to lower your monthly payment.
Eligible Loans
- Direct Subsidized and Unsubsidized Loans
- Direct PLUS Loans made to students
- Direct Consolidation Loans
4. Income-Based Repayment (IBR)
Under this plan, the borrower’s student loan payments are capped at 15% of their discretionary income. After 25 years of qualifying monthly payments, the remaining balance on the student loan will be forgiven.
This repayment plan is good for those who have a lot of debt and a low income. It can also help reduce your tax bill since the amount that is forgiven may be considered taxable income.
Eligible Loans
- Direct Subsidized and Unsubsidized Loans
- Subsidized and Unsubsidized Federal Stafford Loans
- All PLUS loans made to students
- Consolidation Loans (Direct or FFEL) that do not include Direct or include Direct or FFEL PLUS loans made to parents
5. Pay As You Earn (PAYE)
This plan usually has the lowest monthly payment, and is also based on your income but uses 10% of your discretionary income as a payment instead of the 15% used in IBR..
Like IBR, the student loan debt will be forgiven after 25 years of qualifying student loan payments. This repayment plan can also help reduce your tax bill since the amount that is forgiven may be considered taxable income.
Both the IBR and PAYE student loan repayment plans are available to those who qualify. They both require you to prove financial hardship in order to sign up for them though.
Eligible Loans
- Direct Subsidized and Unsubsidized Loans
- Direct PLUS loans made to students
- Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents
Student Loan Forgiveness
If you enroll into either the Income Contingent, Income-Based, or Pay As You Earn repayment plans, your loan balance would be forgiven at the end of the term if you still have a remaining balance.
Need Help With Student Loan Debt?
We’re here to help if you’re feeling overwhelmed by all of this information. For a long time, we’ve been aiding people like you in getting their federal student loans out of default.
Call us right now to set up a free consultation. We will devise a strategy that takes your present financial condition into account while positioning you to achieve your long-term objectives.
