Many college graduates often have student loan debt and this debt can range from a large amount to a very small sum depending on the University, degree, and simply the amount the student chose to borrow while in school. Those who have a large amount of student loan debt often have trouble paying off student loans despite low interest rates and options like student loan consolidation and income-based repayment.
However, there are debt forgiveness options for some people who have certain types of loans and may be in specific careers. Typically, federal student loans have the easiest forgiveness programs associated with their student loans. While private loans may have debt forgiveness options, federal student loans have various programs to provide easier repayment plans and forgiveness after a specific period of time.
People who are in a public service job may be able to have their loans forgiven after 10 years of repayment when they are on a federal student loan repayment plan. Anyone not in any public service job may have their student loans forgiven after 25 years, yet new legislation is set to drop this timeframe down to 20 years.
While this may seem like a long period of repayment, many people with a high amount of student debt can benefit in that they won’t be paying a substantial amount more than they borrowed thanks to high interest rates that often cause many people with student loan debt to pay much more than they borrowed.
Anyone with federal student loans who may be having trouble making their loan payments or is concerned about owing on their student debt for years down the road may want to contact their student loan lender regarding options for managing their debt and student loan debt forgiveness options as well.