New forgiveness laws may make student loan debt more manageable for college graduates who have a large amount of student loan debt. Student loan debt is something that can be quite burdensome for anyone who is starting out in life and since many college graduates don’t walk into a job that affords them the ability to easily pay off their student loans, student debt forgiveness options may make repaying student loans more manageable.
The federal student loan forgiveness law, which will obviously only apply to federal student loans, says that anyone who has a public service job may be eligible for student loan forgiveness after 10 years of repaying personal loans. A non-public service employee may be eligible after 25 years, but this is set to change to 20 years and the future. Usually, student loan forgiveness programs require that a student is in a Direct Loans repayment program, which is typical for anyone with federal student loan debt.
However, if your student loan debt will be repaid before one of the time periods outlined in the student loan forgiveness laws, there may be other options that can make repaying more affordable. Graduates who may be unable to pay their student loans at the present time may be able to take advantage of a forbearance or deferment plan. Also, Direct Loans offers income-based repayment options as well, for those graduates who may fall below a certain income level.
Defaulting or becoming delinquent on student loans can do a lot of damage to your credit but many federal student loans have a lot of wiggle room and assistance available when it comes to repayment. If you’re having trouble repaying student loans it may be in your best interest to contact your lender so that you can find out what assistance options are available for you. Student loans have to be repaid, but they do not have to be a financial burden for years after graduation.