Student loan debt relief is often one of the major concerns which college graduates have, especially during 2010, where many graduates have entered a job market that has not provided a wide range of employment opportunities. While there are still opportunities for student loans to be easily repaid, through certain repayment assistance programs, many are seeking out student loan forgiveness program on federal and private student loan debt.
Forgiveness options on federal student loans are usually the most widely known as there are opportunities for public service employees to have their debt forgiven after 10 years of repayment. This, obviously, has been beneficial for some, yet requirements for this forgiveness opportunity do state that a graduate must remain employed in a qualified public service position for the entirety of their repayment and, before their debt is forgiven, must meet 120 payment obligations.
Yet, there are some graduates working in a public service area who may not have a sizable amount of student loan debt and can have their loans paid off before the 10 year cutoff date, which obviously causes this student loan forgiveness program to be unhelpful. Students who do have a large amount of debt may benefit from this ten-year forgiveness option, but graduates who may work in non-public service occupations are typically offered forgiveness of their student loan debt after 25 years of repayment. While, again, this only benefits students who have a sizable amount of debt or who may be participating in a repayment program which lowers their monthly repayment obligation, graduates must contact their student loan lender to inquire about qualifications for their particular student loan debt situation.
However, college graduates with private student loan debt are often curious about forgiveness options for their college loans, but these opportunities may differ depending on one’s lender. Again, there are some financial institutions which will forgive student loans if the borrower is employed in some form of public service career or, in some cases, serves in the military. Yet, when it comes to private student loans and forgiveness options, this again is an area where a student must consult their lender about opportunities for student loan debt relief.
While there are options on student loans which can make monthly payments more affordable if a borrower is having difficulty repaying their debt, when it comes to forgiveness options, there may not be a wide number of opportunities for simply erasing a sizable amount of one’s student loan debt. Yet, some graduates have used reduced monthly payment programs in combination with forgiveness programs and, under certain conditions, have been able to affordably meet monthly payments and have their student loan debt erased after a set period of time.