Erasing student loan debt after graduation can be problematic for some graduates who may not have entered into a job which has allowed them to meet requirements that come with repaying their student loans, while others may have opportunities for the cancellation of their student loan debt or repayment options which can offer lower monthly payment obligations. Yet, no matter a student’s debt situation upon graduation, after their grace period has expired, student loan debt repayments must begin or a graduate could find themselves in a difficult financial position.
Methods for repaying student loan debt can differ depending on a graduate’s predicament. There are some students who may have benefit from college loans which could be canceled after a set amount of time in repayment, but of course there are qualifications which must be met. As an example, students who have federal student loan debt and have entered into a public service career, like teaching or law enforcement, may qualify to have their debt erased after repayment for 10 years, but there are problems which may arise even for these individuals.
Some graduates, again, have not been able to find employment opportunities which will allow them to meet certain costs, like repaying their student debt obligation, as the monthly minimal requirement is too high. For traditional graduates or those who may qualify for student loan cancellations, there are options from certain programs which may allow these individuals to lower their monthly student loan repayment obligation.
Plans for federal student loans, like income-based repayment options, have allowed graduates the opportunity to erase their student loan debt in an affordable manner due to the fact that these plans require that a student applies only a small percentage of their monthly income towards their student loan debt. Obviously, for those who have a high amount of debt, this can the troubling as they may be unable to erase their debts in a timely manner, but again, this can help avoid missing student loan payments and doing damage to one’s credit score.
Also, these repayment options which allow for a lower monthly payment obligation can lead to students who qualify for debt cancellation and forgiveness to have their debt erased at a more affordable cost than had they made traditional payments or been unable to make payments at all. There may also be student loan forgiveness opportunities for traditional graduates after 25 years of repayments, which again can be helpful for those who have a high amount of student loan debt and are able to take advantage of an income-based repayment plan.
However, these opportunities will depend on a graduate’s student loan lenders, so advisers often suggests that contacting one’s student loans servicer should be one of the first steps when it comes to finding options for affordability on one’s student loan debt, as a student’s particular debt situation may offer them more opportunities for affordability and options for erasing their student loan debt obligation.