College loan debt is something that many people will often acquire when they are at a college or university. Student loans are one way of paying for college, as scholarships and grants sometimes cannot meet the costs of rising tuition and fees at most universities.
Many people are often hesitant to borrow student loans as they worry about exiting college and beginning life in debt. This is a reasonable concern, but many student loans often come with affordable interest rates and federal student loans often have forgiveness programs which will allow students with a high amount of debt to drop the remainder of their student loan debt after a specific period of time.
Usually, someone with a public service job can qualify for debt forgiveness after 10 years of repayment, and anyone with a non-public service job may be able to have their debt forgiven after 25 years of repayment, but this is set to drop to 20 years in the near future.
While some people may not have enough college debt to where this forgiveness option would be beneficial, anyone with federal student loan debt and in a Direct Loans repayment program may be able to not only qualify for student loan forgiveness options, but can also take advantage of other forms of assistance as well.
Someone who may have their debt paid off before a forgiveness option becomes available may be able to take advantage of options like an income-based repayment plan. Federal student loans are often structured in a way that allows them to be more affordable when it comes to repayment.
Plans like deferment options, forbearance, consolidation and even income-based repayment options are available to help make repaying student loans more affordable if a college graduate is struggling to repay their student debt. It’s advisable that anyone who is repaying federal student loan debt, and having trouble doing so, should contact their lender and ask about assistance options that will allow them to better afford making student loan payments.