Certain types of debt can often be burdensome for individuals who are attempting to repay these debt obligations but may not have an income that allows them to easily meet their repayment terms. An example of such debt is student loan debt which is often acquired by many college students who need assistance in paying for college tuition costs.
Debt from sources like student loans can be difficult to repay as the cost of attending a college or university is quite expensive and many students may not enter into an occupation that affords them the income to meet living expenses, other financial obligations, and their student loan repayment obligation as well. Yet, there are certain types of debt, like student loans, that may be forgiven or have repayment options to make them more affordable.
For student loans, debt forgiveness options may come in the form of a public service debt forgiveness plan. Many student loans, specifically federal student loans, have a wide variety of repayment plans and for individuals who are working in a career in the public service sector and attempting to repay federal student loan debt there may be forgiveness options available. Typically, student loan debts have a repayment period of 10 years for borrowers who qualify for this forgiveness option.
However, not every college graduate qualifies for a forgiveness option on their debt, but there are certain repayment plans that can be beneficial as well. Income-based repayment plans are often used by college graduates who are having trouble meeting their repayment obligation due to the fact that they may have a low income.
In cases such as this, certain types of loans have an option where a debtor will only be required to pay a certain percentage of their monthly income toward their loan repayment obligation. This is beneficial in that it can take the strain off the debtor and may help many avoid missing payments or suffering in other areas of their financial life.
Certain types of debt, like student loans, may sometimes be necessary in life but they don’t have to be a financial burden for years while being repaid. These debt forgiveness options and repayment plans can be available on student loans, but other forms of debt may have similar assistance plans available as well to help anyone who may have trouble repaying a loan.