Student Loan Forgiveness: Must-Know Facts
Student Loan Forgiveness is a program meant to encourage individuals to pursue a career in fields that need high student loan debt or have small salaries. As an exchange to the years of service you render in the field, the entire or a part of your balance in federal student loan can be cancelled. When your loan balance is forgiven, it means to say that you are free from the obligation of repaying it. It is, therefore, a great way of relieving yourself from a student loan.
As you start to consider and compare different career fields to pursue, it is worth taking to know the benefits that Student Loan Forgiveness program can lay down in the table. The program is deemed to be right for you if you have an interest in a public-service career but tend to worry about earning a small amount of salary. The program can also be considered good for you if you have already applied for a loan and you are currently on a job that belongs to volunteer service or public service.
The program is made up of several types. It is essential to take time knowing each of them and the way they can benefit you, so you can decide which of them is best to use.
Up-front Student Loan Forgiveness
This program works by cancelling or forgiving a part of your student loan for each year that you are on the service. A part or the whole of your student loan debt can get pardoned and erased depending on the number of years that you can render on the field.
Back-end Student Loan Forgiveness
This one is not the same with the Student Loan Forgiveness. In this program, you can get your full student loan balance cancelled and pardoned. But to make this happen, you need to completely serve the career with the number of years or period required. Failure on your part to complete the entire period will make you forfeit the benefit.
Prior to choose a program in Student Loan Forgiveness, comparing the different programs against each other is highly recommended. Through it, you will know which program will work for you in a more favorable way. It is also necessary that you check the requirements needed to qualify for the said programs. With some programs, for example, you might be required to do qualifying payments over a specific number of months. Before you make up your mind towards a program, be sure that you are fully aware of its ins and outs.
Source: http://www.iliveup.com/blog/getting-out-of-debt-cheat-sheet/