Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. … They can have up to $17,500 in federal direct or Stafford loans forgiven.
Thereof, are Stafford loans government loans?
Stafford loans are a type of federal student loan that are either subsidized – the government pays the interest while you’re in school – or unsubsidized – you pay all the interest. … To receive a subsidized Stafford loan, you must be able to demonstrate financial need.
One may also ask, what is the repayment term on a Stafford loan?
Payments are fixed and made for up to 10 years (between 10 and 30 years for consolidation loans). This repayment plan saves you money over time because your monthly payments may be slightly higher than payments made under other plans, but you’ll pay off your loan in the shortest time.