Student loan laws regarding forgiveness of federal student loan debt are set to change in the future and allow more college students to not only obtain a more affordable student loan, but also, it will change the way student loans are forgiven for specific graduates.
One change in student loan forgiveness will be for student in a public service career. Students in a public service career will be able to have their student loan debt forgiven after ten years of prompt payments.
Also, non-public service jobs will allow graduates with student loan debt to have their loans forgiven after twenty years of student loan payments. This may seem like a long time for many, but there are those who have substantial debt and will benefit from a change in this area.
There is also a change in the percentage that a college graduate has to pay if they are in an income-based repayment plan, which is going to be around 10% of one’s monthly income. There are reports that these loan forgiveness options will only be open for those who consolidate their student loans, qualify for an income-based repayment plan, and keep their payments current for ten or twenty years, depending on their eligibility for loan forgiveness.
Even though the new student loan forgiveness laws aren’t going to help everyone, they are going to benefit graduates who have high debt and those who go into the public service field.
There are currently similar federal student loan forgiveness options open for graduates and it is recommended that those with college debt should contact their student loan lender for information about options available to them.