The Obama administration has set forth new student loan forgiveness laws that are set to go into effect in the near future. Many college graduates would stand to benefit from student loan forgiveness as more and more college students are having to borrow student loans in order to cover the increasing costs of college tuition.
While student loan forgiveness on federal student loans is nothing new, there are some changes in student loan forgiveness laws that may benefit many who have college debt. Anyone who has a public service job and who is in a Direct Loans federal repayment program may be able to have their student loans forgiven after 10 years of repayment. Anyone who is not in a public service job, but still has federal student loan debt, may be able to qualify for forgiveness after 25 years, currently, but this is set to change to 20 years when these new changes go into effect.
Direct Loans is a department that handles student loans for the federal government and they offer a variety of different repayment options and assistance plans for anyone who may be struggling. While not everyone will benefit from these forgiveness plans, as some students may not have a high amount of debt which can be stretched out over these time periods, anyone having trouble paying their student loans can get help as well.
There are forbearance and deferment options, which will allow a college graduate to forgo paying on their student loans for a set period of time. There are also, income-based repayment plans, which will set a college graduate’s monthly loan payment to be a small percentage of their monthly income.
Anyone with federal student loan debt who may be struggling to pay for their loans might want to consider contacting their lender, commonly this will be Direct Loans, and ask about what assistance options or forgiveness options may be available to them.