SBA is launching an online loan forgiveness offer for borrowers who owe more than $50,000 in principal on their student loans.
The offer is only available for borrowers whose loan balances fall below $50 million, and the offer is not transferable.
“This is an important step to make sure that all borrowers can access loan forgiveness when they are ready to start their lives over,” said Andrew Nesbitt, SBA’s assistant chief financial officer.
“Our goal is to help borrowers who are struggling to get on their feet and move forward.
This offer is available to borrowers who need assistance and have outstanding balances that have not been paid off in full.
“The loan forgiveness is based on the outstanding balance of the student loan and the loan balance will not be reduced, however the loan forgiveness will be capped at the lower of the interest rate or the loan amount.”””
SBA will also provide loan forgiveness to borrowers whose debt was incurred during the financial crisis, but that debt has been forgiven,” the offer says.
“The loan forgiveness is based on the outstanding balance of the student loan and the loan balance will not be reduced, however the loan forgiveness will be capped at the lower of the interest rate or the loan amount.”
“The SBE loan forgiveness program is not a federal or state program, so borrowers should consult their loan servicer for more information,” Nesbbitt said.
The SBE offers loans at 0% interest and 1.5% interest.
The SBI offers loan forgiveness for a maximum of $500 per borrower, and is a more traditional program.
SBA also offers loan reduction programs to borrowers.
The SBO loan reduction program allows borrowers to apply for up to one year of loan reduction to lower their student loan balance.
“SBO loan forgiveness applies to borrowers eligible for federal student loans, federal Perkins loans, private loans, PLUS loans, and certain Stafford loans, with a minimum of one year,” the loan reduction offers states.
“In general, the borrower will be able to reduce their loan amount by up to 30%.
SBO is available for up in the range of 5% to 30% of the total amount of outstanding loan balances.”