Student loans are often acquired to meet the costs of college tuition and fees and many students are graduating only to find that they have a large amount of debt which they must repay on their college loan. This can be burdensome as many jobs out of college cannot afford graduates the opportunity to easily meet the costs of repaying their loan debt. However, for some, loan forgiveness options may be available which can make handling their student loan debt much easier.
Student loan forgiveness may not be available for everyone with college debt. Typically, a college student either has federal student loan debt or private student loans, and it is dependent upon which form of debt one has as to if they can obtain student loan forgiveness.
Private student loans usually have few, if any, options for forgiveness. Some lenders may cut down on a percentage of the loan amount one owes in certain cases, but there is nothing that guarantees forgiveness of private loans. Often, it’s advised that a student talk with their private loan lender to ask about these options for their specific private loan situation, as again, forgiveness would be up to the lender in a private student loan situation.
However, federal student loans do have clearer guidelines for student loan forgiveness. A student with federal loan debt, for instance, may be able to have their loans forgiven after ten years of repayment if they work in a public service field. Usually, it’s required that a graduate be in a Direct Loans repayment program, seeing as how Direct Loans handles federal student loans.
Also, non-public service employees may qualify for federal student loans after 25 years of repayment, but that timeframe is set to drop in the future. However, is a graduate with college debt will not benefit from these timelines for repayment, meaning they may have their loans repaid before a ten or 25 year mark is met, there are still programs, like an income-based repayment plan, that can help a graduate manage and repay their student loan debt.