Federal student loans have options available for forgiveness if students meet certain requirements. Many college students often use federal student loans in order to help them meet the college costs that are rising across the nation. Federal student loans often come with low interest rates and can be very affordable so it’s for this reason that many students choose these types of loans.
An added benefit to federal student loans is that there are forgiveness options available for students who may have acquired a large amount of debt during their college career. Student loan debt can sometimes be burdensome, but it doesn’t have to be a financial strain on anyone’s personal budget.
While the qualifications for student loan forgiveness are set to change in a few years, currently public service employees can have their student debt forgiven after 10 years of prompt repayment and non-public service employees can have their debt forgiven after 25 years. For people who have a large amount of student debt this can be very beneficial, but people worry that these time frames may be too long and they will have already paid their debt before these time periods are met.
If you only have a small amount of student loan debt, but are still struggling to make your payments you may qualify for a federal student loan income-based repayment plan. These plans will only require you to pay on your student loan a small percentage of your current monthly income. This, obviously, can be beneficial for those who may not have the income to meet their financial needs and pay off student loans as well.
It’s best to attack student loan debt before it becomes a problem, so anyone who may be struggling to make their mortgage payments needs to make sure that they contact their lender and ask about available assistance options to help them handle their student loan debt.