When it comes to student loan forgiveness options, typically, the most clear-cut forgiveness policies come from federal student loans. Federal student loans have forgiveness plans available to both public and nonpublic service employees, so anyone in one of these fields with a large amount of student loan debt may be able to benefit from student loan forgiveness.
Commonly, anyone with federal student loan debt must be in a repayment plan from Direct Loans, which handles the governmental student loan program, and based on one’s occupation they may qualify for student loan forgiveness. Student loan forgiveness isn’t something that occurs in a brief time, as certain amounts of student debt must be repaid and can’t be forgiven without any cost to the borrower.
However, public service employees may qualify for student loan forgiveness after 10 years of repayment and nonpublic service employees may qualify after 25 years of repayment, but new legislation is set to drop this to 20 years in the near future.
There are people who believe that this is a long time to repay but many college graduates with a large amount of student loan debt will end up paying on that debt for periods longer than 10 or 25 years, so anyone in one of these situations may benefit from student loan forgiveness programs.
Yet, anyone who has an amount of student loan debt that will be repaid before these terms may benefit, if they are struggling to make their student loan payments, from income-based repayment programs offered by Direct Loans. While students are responsible for repaying their federal student loan debt, there are options for forgiveness and assistance available to anyone that may be struggling to repay their debt.
Contacting your student loan lender is going to be the best option when it comes to finding out what plans would be best suited for your personal college debt situation.