How to Qualify for Student Loan Forgiveness
There are people who qualify for student loan forgiveness programs but it is not easy to determine if you are qualified or not. There are different forgiveness programs, but it needs time and effort to find out which program applies to your particular situation. Some highly advertised programs can get you qualified for a partial loan forgiveness if you have earned a degree and are already employed. The other forgiveness options will require you to either educate yourself or let somebody else do it for you.
There are other government programs that also offer student loan forgiveness relief. Teachers and some other public service workers are able to participate in a loan forgiveness program. There are some requirements though to qualify for these programs. It is advisable to consult with a loan specialist so that you will understand the complexities of a loan forgiveness application.
Teachers who have Stafford and/or Perkins loans and teach in low-income areas qualify for forgiveness programs. The whole Perkin’s loans can be completely forgiven if your school is qualified. Some teacher can get forgiveness up to five hundred dollars while those who have Stafford loan debts can have up to seventeen thousand five hundred. You should be very thankful if you qualify for these loan forgiveness programs.
Military men also have their own student loan relief forgiveness programs. The amount of loan forgiveness and other qualifying factors is dependent on the level or rank achieved in the preferred branch. Asking for the requirements that you are expected to do in order to receive the loan forgiveness is what you need to do if you want to know what forgiveness is offered.
Any one can qualify for the income based repayment plans. Here monthly payments are adjusted depending on your discretionary income. Discretionary income is determine by subtracting the cost of living expenses from your net monthly income. I this program your monthly loan payment is less than fifteen percent of your discretionary income. In other circumstances it is possible for a person to qualify for a zero payment. Based on your current finances, your monthly payments are recalculated each year. You can be completely forgiven of your remaining balance if you have been making monthly payments for the last twenty five years.
For those who have borrowed money from the William D Ford Direct Loan program for public servants, there are also loan forgiveness program available. For the remainder of their debt to be forgiven, employees must be in a public or non-profit job sector, and have made 120 qualified payments.
Saving on their student debt is possible from the government’s offers of great opportunities. The amount forgiven will be taxed by the IRS.
Source: http://basicfinancetips.com/important-things-know-student-debt/