Options to erase federal student loan debt after college graduation may be available through either forgiveness programs or student loan repayment plans directly from an employer. While some students will be required to meet student loan payments for a set period of time or meet other qualifications, these two options are some of the more popular ways that federal debt can be erased with minimal cost to a college graduate.
Federal student loans are one of the more popular ways that students have acquired the financial aid they need to meet college tuition costs, fees, and even purchase textbooks, but there are those who simply need student loans due to the fact that other forms of assistance will not pay the entirety of their college costs. In these cases, students may be left with a high amount of student loan debt after graduation which can be problematic for years down the road while a student attempt to repay this debt.
However, for federal student loans, forgiveness may be granted after 10 years of repayment for those who enter into a public service career and are repaying this debt through an approved Direct Loans program. While one of these Direct Loans programs can be an option like a consolidation plan or an income-based repayment plan, which lowers the minimal amount a student must meet on their repayment obligation, these opportunities have allowed for individuals with a high amount of debt to meet minimal payments for this repayment timeframe and then have the remaining balance of their federal student loans simply forgiven.
Yet, some students who have entered into specific careers, like those with governmental agencies, may be offered a Student Loan Repayment Program if they agree to work with this particular organization or a qualified organization for a set period of time. Typically, students can qualify for this repayment option and have up to $10,000 repaid on their debt each year for a total of $60,000 for any one graduate.
While not all college graduates with federal student loan debt may qualify for these programs, they can be quite helpful for those who are entering into a qualified public service career or who agree to work in an approved governmental occupation for a set period of time, as these programs are designed to attract and keep workers in the fields, which may be in areas where a high need for quality workers is being sought. Graduates can consult their student loan lender about not only these forgiveness and repayment options but other assistance plans that may simply help making repaying student loans debts more affordable, as there are programs simply beyond repayment plans and forgiveness options that can help those who are having to combat a high amount of college loan debt.