Helpful Advice on Repaying Your Student Loans
Student loan borrowers often regret taking out so many loans while in school. Many borrowers feel trapped and have nowhere to run or hide. The good news is there are student loan forgiveness programs.
The federal student loan forgiveness programs provide a way to cancel or lower your balance in a relatively short amount of time. What you qualify for is determined by your profession and the repayment plan you select to enroll in.
In order to qualify, you cannot have defaulted on your loans. This means you haven’t made a single payment in at least nine months. If you’ve taken out private student loans, you don’t qualify for student loan forgiveness, but may be able to negotiate directly with your lender. 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. Teachers, military workers, nurses and other public service professions, typically qualify for this program. 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.
Call your student loan provider to receive help applying. This is the first step you’ll need to take to confirm if you are eligible. They can tell you what paperwork to fill out and if you need to consolidate your loans before applying.
In order to remain on track, you will need to work with your employer to complete the necessary paperwork. 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.
federal Perkins loans borrowers are eligible to have 100% of their loans forgiven if they work in public service. If you’re not sure if your job qualifies you for this type of student loan forgiveness, there are detailed job charts available online.
There are additional guidelines to be aware of if you are a teacher. A a lot of subjects aren’t eligible, as well as most schools.
Income-driven repayment plans are another option for those who don’t qualify for Perkins and Public Student Loan forgiveness. Your remaining loan balance will be forgiven after 20 years so, based on the plan you’re enrolled in. 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.