Student Loan Forgiveness.

It really is a beautiful concept, right? Student loan forgiveness. To find one’s self in a situation where the some times overwhelming burden of student loan debt is either partially or fully lifted off of a person’s shoulders. There are rules to such a deal, and yes circumstances must be right, and sacrifices must be made. In this article i will do my best to give an over view of what it is to experience loan forgiveness, and what such a status entails. However you should never rely on an internet article alone. More due diligence will be needed after reading this, to see if you can make such a deal happen for your self. First and foremost, you absolutely can not be in default on your loans to qualify for a forgiveness program. A different way of saying it is, you can not be in a situation where payments have not at all been made for nine months. Please double check this, but in the world of default, nine months is the magic period of time.
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Private student loans are not available for forgiveness programs. There are times when a private lender can assist by permitting interest only payments for a while during hard times, or possible reduce the interest rate for a time, however you would need to contact the lender directly, and inquire as to what assistance options may be available to you.
So, here is what we know. A program was initiated back in year 2007. It is the Public Service Loan Forgiveness program. Essentially is offers eventual student loan forgiveness based on employment on the public service sector. Most money is saved if your student loan payments are made via an income driven repayment plan. The launch of the program was 2007, and it is based on ten years of public service, so the very first loans to be forgiven will take place this coming 2017. Which loans are able to be forgiven under the plan? Federal direct student loans are forgiven under the plan. However please keep in mind, it is possible at the time of graduation or there after to consolidate your loans into a federal direct loan package, thus creating an over all loan situation that would qualify for forgiveness after the ten years of public service.
Therefore the program began October first of 2007, so if you are a person that has made on time payments of your loan for 120 consecutive months, and you have worked in a qualifying public sector job during that duration, you can apply for the forgiveness. Applications will be available starting October first of 2017.
Even better than that is a program for teachers. Teachers who work in low income public school districts who borrowed monies prior to April first 1998, can have $17,500 forgiven in direct student loans or Stafford loans. After that period, the teacher can then enroll in the ten year plan to have further loan forgiveness in the event the person teaches for fifteen years. Borrowers have been able to find forgiveness of Perkins student loans after a period of five years if they work as teachers, police officers, fire fighters, nurses, public defenders, just to name a few . It is very much worth looking in to if you have Perkins loan debt, and are in a public service job, or intend to be.
The basis for this article is to make it quite clear to the reader, that Student Loan Forgiveness is out there, and multiple programs exist. Talk to your lenders. Get all the quality information that you can. If i had such debt, i would buy a new four dollar ebook a least one a year to be updated on changes in programs, and versed on new program creation. Stay diligent. It’s worth every dollar of savings.


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