Many students who exit college often have some form of student loan debt. Typically, federal student loans are borrowed more often than other loans as federal student loans usually require no credit history and do not take into account a student’s credit score since many college students are coming from high school and have little or no credit history.
While federal student loan programs can be beneficial, many college graduates worry about how they will repay their federal student loan debt after college. The Obama administration proposed new student loan laws and Congress passed these reforms, which are set to take place in the near future. New student loan forgiveness options, along with other changes, are hopefully set to make student loans less burdensome for those who want to further their education but may be unable to afford college.
While these new federal student loan laws are not set to go into effect for a few years, there are current options of which students and graduates can take advantage. Anyone in a public service job and in a Direct Loans repayment program may be able to have their student loans forgiven after 10 years of repayment. Any non-public service employee may be able to have their federal student loans forgiven after 25 years of repayment, but this is set to drop to 20 years when new student loan laws go into effect.
Some college graduates may not be able to take advantage of these student loan laws, but there are other forms of assistance that are available to help those who have student loan debt. There are types of aid ranging from debt consolidation loans to income-based repayment plans which can help anyone struggling to make their student loan payment.
Talking over any troubles you may be having with your student loan lender is going to be the best way to uncover which forms of debt repayment assistance options are going to be available to you and which one will be to your benefit. While student loan debt is sometimes unavoidable it’s not something that has to be crushing your finances for years after graduation.