It’s important to go to college, but the act of obtaining higher education can also be ridiculously expensive. A huge percentage of students leave college with massive amounts of debt that they’re left paying off for years to come.
Something that is becoming an increasing part of the country’s conversation is student loan debt forgiveness. This is a way in which indebted former students can get out from under the thumb of the money they owe.
How does debt forgiveness work and what do you need to know about it? Read on and learn everything that you need to know.
What Is Student Loan Debt Forgiveness?
It may sound too good to be true, but there are instances in which the federal government will give you a break on the money that you owe them. If you’ve gotten your student loans through federal means, there may be various pathways towards you getting out of the situation.
The government understands that not all people will be able to pay off loans, and their hope at the end of the day is not to cripple anyone’s well being. After all, they’d much prefer you to be thriving, buying products, and contributing to the nation’s GDP.
There are a number of requirements you’ll have to meet to be able to take on student loan forgiveness programs, and not every program will be right for you.
Popular Loan Forgiveness Programs
There are a number of different ways to pursue getting the money you owe forgiven. Some will be more beneficial than others.
One of the more popular methods is via the income-driven repayment program. Under these rules, you can cap your monthly student loan payments at a certain percentage of your income. After a period of twenty or even twenty-five years, the remaining money that you have yet to pay can be forgiven.
This is a way in which both you and the government can have the happy ending you want. However, if you’re in dire financial straits, it might not be enough to get you by.
There might be a better option for you out there if you work for the government or in a position of public service. If you work in these kinds of positions, you can have your student loan debt forgiven tax-free after you make only 120 payments under an income-driven plan.
While this is still a lot of money to pay back, it can significantly cut down how much you’ll have to pay to the government overall.
If you have trouble getting approved for Public Service Loan Forgiveness, you can look into tepslf, or the Temporary Expanded Public Service Loan Forgiveness program. Many people find relief via this program.
Federal Student Loan Forgiveness
No one wants to be paying off student loans their entire life. If this is a situation you’ve found yourself in, looking into the above student loan debt forgiveness programs can be a huge help.
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