Federal student loan debt it is often acquired by individuals who are attending a college or university due to the fact that many forms of financial assistance do not offer enough funding to meet the entirety of costs which are associated with attending an educational institution. College tuition has been on the rise and with money required for fees, room and board, food, and books, many students must turn to student loan opportunities as a way to pay for their education.
However, students in certain situations have been able to take advantage of forgiveness programs, like those offered for federal college loans debts. Obviously, any college graduate who may have a high amount of debt would welcome the opportunity to have a portion of their student loans forgiven after a set period of time, and for some this may be possible.
College graduates who may work in a public service career might have options concerning their federal student loan debt which will allow them to obtain student loan forgiveness after making a set number of payments on their debt. Typically, public service employees who are working with Direct Loans, the organization that oversees federal student loans, will be able to enroll in a student loan forgiveness plan, if they qualify.
Usually, graduates who are seeking student loan forgiveness options will have to be employed in a public service area and remain employed during a time where they make 120 payments on their student loan. Obviously, this equates to 10 years worth of repayments on federal student loan debt for a public service employee, and at the conclusion of this time the remaining balance can be forgiven through these forgiveness plans.
While there may be some graduates working in a public service area who will not qualify or benefit from this type of assistance, there are those who may have acquired a large amount of debt and can take advantage of this opportunity after their repayment requirements have been met. There is an added advantage to some of the forgiveness plans as students can also enroll in repayment options like an income-based repayment plan, which allows students to only pay a small percentage of their monthly income towards their debt.
If a college graduate is unable to meet their monthly payments on their student loan debt repayment obligation, these types of income-based plans can reduce the amount they must pay month-to-month and, after they reached their 120 payment requirement, the remainder of their debt may be forgiven on their federal loans. Again, not all graduates may qualify for this forgiveness option, however, students can speak with their student loan servicer to see if a forgiveness option may be available for their situation or if other repayment plans may be available to make their debt repayment more affordable.