Forgiveness Plans For Student Loan Debt Available To Some But Are These Repayment Options Helpful?

Student loan debt may have certain forgiveness options which can be used by graduates in order to alleviate themselves of a percentage of college loan debt which they may be repaying. This means that there are types of forgiveness options on loans, like federal student loans, which are available to specific individuals, but many ask whether these opportunities for student loan forgiveness are really helpful.

As an example, federal student loans for graduates who work in a public service related area may come with a forgiveness option if certain qualifications are met. Students who participate in a Direct Loans repayment plan, like an income-based repayment program, may have their federal student loan debt forgiven if they are a public service employee and make repayments for 10 years.

Typically, student loan forgiveness in this case requires 120 payments on student loan debt, which again equates to 10 years, but many feel that this option may not be helpful for some college graduates. Arguments in this area center around the fact that some students may not have acquired debt which is sizable enough to be forgiven, meaning they will have paid off their debt before the 10 year forgiveness option will be helpful.

Yet, there are those who argue that some students who are in a public-service field may have acquired a sizable amount of student loan debt while attending college and may be unable to erase this debt in such a short amount of time, and will obviously be able to greatly benefit from having their debt forgiven after only 10 years.

What needs to be understood though is that students who are having difficulty meeting their repayment obligations can qualify for these income-based repayment options, and that would obviously lead to a more affordable monthly payment. Yet, these affordable payments may extend the repayment timeframe a college graduate faces, which could necessitate either higher overall costs or, obviously, additional years of repayment.

In such cases, students who may have to expand their repayment terms could actually benefit from a forgiveness option, if they qualify, as they will benefit from lower, more affordable monthly student loan debt repayment obligations, and also will have that debt forgiven once their forgiveness repayment requirements have been met.