Student loans are plaguing American society with unnecessary debt. Student loans have surpassed credit card debt as America’s biggest financial burden. Luckily, there’s a way to escape and live your life debt free.
In recent years, President Obama has been trying to alleviate the burden of student loans on the population through programs like income-based repayment plans and student loan forgiveness. However, income-based repayment plans still require the borrower to repay all of their loans.
Those lucky enough to qualify for student loan forgiveness should take advantage of the program. In recent news The Consumer Financial Protection Bureau has stated that as much as 25% of American public services employees are eligible for repayment of student loans.
Many types of government loans are eligible for forgiveness under this program including Direct Loans, Perkins Loans and Federal Family Education Loan (FFEL) Program loans, such as the Stafford loans. Interested borrowers should note that private loans are not eligible for this student loan forgiveness program.
Many people want to know how they can qualify for student loan forgiveness. Working as a teacher, either in the public service sector or with a nonprofit organisation, is a surefire way to qualify for these programs. Full-time educators, working with low-income families, are offered up to $5,000 loan forgiveness after the completion of their fifth teaching year. This amount is increased to $17,000 for elementary/secondary special education teachers and secondary math and science teachers
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 These payments must be made while you are working for the qualifying Non-profit organisation or government agency.
It’s important to note the financial stability of your employer because the 120 payments must be made while employed by the same organisation, school, or government agency. In the event that your school or NPO goes out of business before your 120 consecutive payments have been made, you will have to start over with the payments when you find a new job at a qualifying agency. If this happens to you, you may be eligible to claim damages in the employer’s 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. Obama’s forgiveness program benefits those working for schools, non-profit organizations, government agencies, and tax-exempt employers.