A Guide to Student Loan Forgiveness

There are people who qualify for student loan forgiveness programs but it is not easy to determine if you are qualified or not. To find out which program applies to your particular situation needs time and effort. Some highly advertised programs can get you qualified for a partial loan forgiveness if you have earned a degree and are already employed. If you have finished your education you can qualify for the other forgiveness options.

Different government programs provide student loan forgiveness relief. If you are a teacher or a public servant then you can participate in the loan forgiveness programs. There are some things you need to do in order to quality. If you want to apply for a student loan forgiveness program you may need the help of a loan specialist to help you with the complexities involved in this application.

Public school teachers that qualify for forgiveness are those who teach in low-income areas and have Stafford and/or Perkins loan. There are school qualification is order to be forgiven of your entire Perkins loans. The loan forgiveness can be up to five hundred dollars for some teachers but for those who have Stafford loans, the forgiveness can reach up to seventeen thousand five hundred dollars. You should be very thankful if you qualify for these loan forgiveness programs.

The Army, Navy, Air Force, and National Guard also have their own student loan relief forgiveness programs. The amount of loan forgiveness and other qualifying factors is dependent on the level or rank achieved in the preferred branch. If you want to find out what forgiveness is offered you need to contact the preferred branch directly, and you can inquire on what you will be expected to do in order to receive it.

Any one can qualify for the income based repayment plans. Based on your discretionary income, the program adjusts the monthly loans payments. The adjustments are made by deducting your cost of living from your net monthly income. I this program your monthly loan payment is less than fifteen percent of your discretionary income. There is a possibility of your loan payment amounting to zero income based on certain circumstances. Every year, and your monthly payments are recalculated based on you or current finances. If you have been making payments for twenty five years, then the remaining balance is completely forgiven.

There are loan forgiveness programs available for public servants who have gotten loans from the William D Ford Direct Loan program. If you are from the public sector with a non-profit job and have already made 120 qualified payments, then you qualify for a complete debt forgiveness.

There are some great opportunities that the government offers for graduates to save on their student debt. The IRS will collect taxes for the amount of loan that was forgiven.

Source: http://completepersonalfinance.com/2016/03/thinking-about-paying-your-student-loan-off-early-dont/