Canceling student loan debt has been something that many college graduates have researched as the rising cost of college tuition has produced many graduates with a large amount of student loan debt. Obviously, graduates want to erase this debt as quickly as possible, but there are some instances where student loan forgiveness may be available.
Typically, federal student loans have the best options when it comes to student loan forgiveness plans, but there may be some instances where private student loans can be forgiven as well. When it comes to private student loan lenders, the student borrower will typically need to contact their lender to see what qualifications are specifically required in order to qualify for private student loan forgiveness.
Yet, federal student loans may be forgiven after a certain amount of time in repayment for specific college graduates. While there may be general forgiveness available for college graduates who make 20 to 25 years worth of repayments on their student loan debt, public service employees can have their student loan debt forgiven after only 10 years of repayment.
Direct Loans, the program from the Department of Education which oversees student loans, requires that public service employees be enrolled in a Direct Loans repayment program before they can qualify for student loan forgiveness. If a college graduate is employed at a public service institution for the entirety of time they are repaying their student loans debt, after 120 payments or 10 years worth of student loan repayments, their debt may be forgiven.
While there are some individuals who look unfavorably on student loan forgiveness, 10 years worth of repayments can bring in a sizable amount of money that is owed on most college loans. Also, students who may have a high amount of debt and can have their loans forgiven after 10 years may be more willing to serve in public service fields if they know their student loans may be dropped. This has prompted many to enter into areas of service where there is a great need for more employees and, since students can have their debt forgiven, there has been benefits on both sides.
College graduates who feel they may qualify for student loan forgiveness can either consult the Direct Loans website or contact the lender personally to talk over requirements and qualifications for their personal student loan debt situation and forgiveness options.