What You Need to Know About Student Loan Forgiveness
There are plenty of students that have applied for a loan in order for them to finally get their dream jobs. This seems like a good plan at first but what happens if you end up getting a job that does not pay well? The best option for those people who are having a hard time paying their remaining student debts is to apply for a student loan forgiveness program. For those who have not heard of this in the past, this is a program that aims to financially assist those who are working in the public service sector by exempting them from paying their debts. It was ten years ago when the congress passed this act. Yes, it is true that the student loan forgiveness program has strict stipulations and conditions, however, a lot of people who have a low-paying job still benefit a lot from it. The types of loans that fall under this program are the following: Federal Direct Plus loans, Federal Direct Consolidation loans, and even Federal Direct Stafford loans.
If you are employed under any public service job and you have made 120 successful payments in the past, then applying for this program will be a cakewalk for you. If you are wondering what jobs qualify for this said program, these are the police force, military, public health/ education, and any government-related jobs (can’t be under the Congress or Senate). Public school librarians and tribal college instructors also made it to the list.
Since this program was only approved 10 years ago (October 2007), payments before this said date are not counted. It is also NOT permitted for one to use an extended repayment plan or a graduated repayment to qualify for this program. All 120 payments should also be done while you are still employed for any of the jobs mentioned above. In case you decided to quit your job while paying your loan, you will not be eligible to apply for the student loan forgiveness program.
The student loan forgiveness program will definitely benefit you a lot especially if you are only starting to work and you do not earn a lot to make a living. Even though the stipulations and conditions for this said program is a bit daunting, that does not mean you will not qualify. For as long as you do not quit your job and you work in the public sector for an extended period of time, this task should be a walk in the park for you. The time and effort you will spend applying for this program will definitely be worthwhile because it will free you from your financial obligations. This is the type of program that you must never ignore.