In America, student loans have become a universal financial burden. Student loans affect more people than credit card debt and medical expenses. Luckily, there’s a way to escape and live your life debt free.
Some borrowers may qualify for Student Loan Forgiveness or income-based repayment plans. Income-based repayment plans are just a temporary fix for a permanent problem.
Many people do not know they quality for Obama’s Student Loan Forgiveness Program. According to The Consumer Financial Protection Bureau, an estimated 25% of the U.S. who are employed as public service employees are eligible for student loan repayment benefits.
Direct Loans, Perkins Loans and Federal Family Education Loan (FFEL) Program loans, such as the Stafford loans are all eligible for forgiveness under this program. Private loans are not currently eligible for Obama’s Forgiveness Program.
Many people want to know how they can qualify for student loan forgiveness. Educators, working for public or nonprofit schools, qualify for loan forgiveness. These teachers must be teaching full-time at a specified low-income district, at the end of their fifth year they will qualify for up to $5,000 of loan forgiveness. Elementary/secondary special education teachers and secondary math and science teachers qualify for up to $17,000 of student loan forgiveness.
For public service employees, Direct Loans–Perkins or FFEL loan can also be eligible for this program. Individuals working full-time for a government agency for a non-profit organisation with tax-exempt status may also be helped by this loan forgiveness program.
The basic qualifies are making 120 on-time, full, scheduled monthly payments on your current Direct Loans after October 1, 2007 It’s important to note that these 120 payment but be made after becoming an employee of a qualifying Non-profit organisation or government agency.
Those working towards loan forgiveness must make sure that their agency, NPO, or school is financially stable as well. Some individuals have been discouraged after their school or NPO went out of business, leaving this disqualified for student loan forgiveness before their 5 years were completed. In the event of a bankruptcy, the employee may be eligible for claim a loss in court during the bankruptcy case.
Finally, it is recommended that interested borrowers look into Obama’s loan forgiveness to see how it may be applied to you and your loans. Those working for schools, non-profit organizations, government agencies, and tax-exempt employers should look into student loan forgiveness.