College graduates that have federal loans and go into a public service career usually have more options with student loan forgiveness available to them. However, many graduates that are not in public service fields are asking what their options are for loan forgiveness.
While there have been changes in the student loan lending process from the federal government, they are not set to take effect for some time now. However, there are still some ways in which student loan forgiveness or repayment can be an option.
Typically, federal student loans, for those who qualify, are forgiven after 25 years of on-time payments. While this seems like a long time for many, it can help if you qualify for income-based repayment, meaning you only pay a percentage of your income toward your student loans each month.
Usually this requires consolidating your federal loans with Direct Loans, a governmental student loan agency, but for many college graduates this may be a good option.
Another alternative isn’t exactly forgiveness, but there are certain jobs, careers and employers that will pay back up to $10,000 a year on your student loans up to $60,000. Again, these are usually with federal loans and require you to commit to working with an organization, usually a governmental job or, again, a public service job.
Sadly, at the present time, someone in a non-public service field doesn’t have a lot of student loan forgiveness options. However, you may want to talk with your lender about an income-based repayment plan and ask how long you have to pay until your loans are forgiven.
If you have a small amount of student loans it may benefit you to just budget and pay them off as soon as you can, but if you have a large amount of debt and a low income you might benefit from an income-based repayment plan.