Debt relief can be a very welcoming opportunity for any consumer, but particularly when it comes to student loan debt relief for graduates who may have a high amount of student loan debts which could take years to repay. There are opportunities for some students to enter into repayment programs, like those through the Direct Loans federal repayment plan, which will allow for debt relief through student loan forgiveness plans after a set period of time.
Specifically, public service employees who graduate college with federal student loan debt may have difficulty repaying the totality of their loans, but there are opportunities for these individuals to only be required to repay their debt for up to 10 years. While some may feel that 10 years is still a substantial amount of time, especially since debt relief programs are meant to reward individuals who enter into certain careers, many of these debt relief options can be coupled with other assistance plans like an income-based repayment program.
College graduates who qualify for a public service student loan debt forgiveness program may also be able to take advantage of options like an income-based repayment plan, which will only require that a graduate pay a small percentage of their total monthly income towards their student loan. While this can drastically reduce monthly payment costs, there are those who are concerned over the total costs which may be met while repaying student debt. However, for college students who qualify for these debt relief programs and may have a large amount of debt, after only 120 monthly payments, federal student loan debt relief programs can allow for the cancellation of additional college loan debt.
Obviously, federal repayment programs which allow for the forgiveness of student loan debt will only apply to federal student loans, and again, students must be employed in an eligible public service career for the entirety of their repayment timeframe. However, there are options for graduates who are not a public service career to have their debt forgiven after 25 years of repayment on their federal student loans.
While it’s understandable that some graduates may not have a student loan debt amount which will take 10 years or more to repay, thus not benefiting from this form of forgiveness, however, students who have entered into these public service areas and may have acquired substantial student loan debt may be able to not only lower their monthly student loan repayment obligation but have their debts canceled after they had met these requirements. Federal student loan cancellation is not an option for all, but students are being prompted to contact their lender or student loan servicer if they feel they may benefit from or qualify for these federal forgiveness options on student loan debt.