The Obama Administration and Congress drafted and passed new student loan laws and procedures that passed with the healthcare bill that should make getting student loans for college more affordable. The majority of college students usually have some form of college loans when they exit college, so this new legislation is hoped to not only make these student loans more affordable, but also provide more forgiveness options.
However, these effects do not take place for some time, so many current college students and college graduates are wondering what their options are in terms of student loan forgiveness. Typically, federal student loans have the best chance at getting forgiveness.
These loans are forgiven usually through a career or job and new laws are going to make the term in which you have to pay before receiving student loan forgiveness easier to manage.
Currently if you have a public service job or work for the government, you may qualify for either student loan forgiveness or at least may benefit from your employer paying back up to a certain percentage of your loans.
Keep in mind though, people without public service jobs may have to make payments for 20 or 25 years before their loan is forgiven, and even under new student loan laws, some public service jobs will only allow student loan forgiveness after 10 years of repayment.
However, if you are struggling in your student loan payments you may be able to get on an income-based repayment schedule that would allow you to only pay a percentage of your income on your loans each month, which could be beneficial if you have a high amount of federal student loan debt and don’t qualify for student loan forgiveness for a few years down the road.