Easy Ways to Have Your Student Loans Forgiven
Student loan borrowers often feel overwhelmed by the amount of the debt they’ve accumulated while in school. There are many borrowers who don’t feel like they have any options, other than to grin and bear it. The good news is there are student loan forgiveness programs.
These programs are designed to rid you of your federal loan debt. What you qualify for is determined by your profession and the repayment plan you select to enroll in.
Being in default on your loans, automatically disqualifies you. You’re in default if you haven’t made a payment in more than nine months. Since private student loans don’t provide borrowers with forgiveness options, it’s up to the lender to decide how they will accommodate your needs. You will need to discuss your options with your lender.
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If you’ve worked for a non-profit or for the government for at least ten years, your remaining balance will be forgiven. Professions that qualify for forgiveness range from nurses to military personnel. If you qualify for Public Service Loan Forgiveness, consider enrolling in an income-driven plan to save a lot of money.
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Federal direct loans are the only loans that are eligible for Public Service Loan Forgiveness. If you don’t initially qualify, then your best bet is to consolidate other student loans into your federal direct loans.
The company that manages your student loans will help you with your application. The company that manages your loans, will let you know if you qualify for forgiveness. They can tell you what paperwork to fill out and if you need to consolidate your loans before applying.
Your employer is responsible for helping you complete the employment certification form. Although annual completion of this form is recommended, it isn’t mandatory. Consider certifying your employment retroactively, as it will cut down on the extra paperwork.
Borrowers who are public service workers, and have taken out federal Perkins loans, are eligible to have their loans canceled in entirety. Search online for detailed job charts that will tell you if your job is eligible.
There are loan benefits available for teachers, as well as detailed guidelines to remain eligible. You don’t qualify just because you work full-time at a public school, the subject and type of school are also factored into your eligibility.
Income-driven repayment plans are another option for those who don’t qualify for Perkins and Public Student Loan forgiveness. After 20 to 25 years of income-driven payment, your remaining loan balance is forgiven. It’s best to consider your options and compare offers before choosing a program. As long as you come up with a solid strategy to pay off your student loans, you will be able to manage your debt without fear or anxiety.