Student loan debt forgiveness is an option being explored by more college students as many graduates seek to erase various forms of debt, one of which would obviously be from federal student loans. The cost of college tuition is rising at many universities and other educational institutions, so with student loans being necessary for many men and women, student loan debt is something that can be problematic after school.
It’s for this reason that graduates who have entered into a public service occupation may qualify for a student loan forgiveness option if they have federal student loans. While there are private student loan forgiveness options, in some cases, these private loan forgiveness plans will mostly be dependent upon the lender’s discretion when it comes to terms of forgiveness.
However, those who have federal student loans and are employed with a public service institution, meaning they work in an occupation like the medical field, education, military, or law enforcement, just to name a few, may have a better opportunity at having their student loan debt forgiven after a set amount of repayments. Typically, the requirement for the Public Service Loan Forgiveness Program from the federal government is 120 payments on loans under certain repayment plans. This equates to 10 years worth of repayment, which can be very beneficial for those who may have a sizable amount of student loan debt.
Students who are seeking student loan debt forgiveness may have questions about qualifications for this type of debt relief so students who are employed in a public service job are often advised to contact their student loan lender or servicer to talk about specific forgiveness related to their personal student loan debt situation. Yet, the basic outline of student loan forgiveness for federal student loan debt is, again, 10 years worth of repayments in certain repayment plans from the Direct Loan Program for Stafford Loans, Unsubsidized Stafford Loans, Direct Plus Loans, and Federal Consolidation Loans.
Eligible repayment programs include an income-based repayment plan, an income contingent repayment plan, or a standard repayment plan with a 10 year repayment period. While these types of loan repayment plans are common, individuals who work in a public service field and feel that they can qualify for student loan forgiveness may benefit from contacting the Direct Loans Program to speak with a representative about requirements for their personal student loan debt to be forgiven. While not every individual with federal student loan debt may qualify for a forgiveness plan, there are also options that can make repaying student loan debt less burdensome on one’s personal finances as well.