Millions of U.S. college graduates struggle with repaying student loan debt today. Student loan forgiveness and other relief services are thankfully available. Programs sponsored by the U.S. federal government either reduce or eliminate student loan debt for qualified applicants.
To be considered a qualified applicant you must meet specific program requirements. It is important to realize you might qualify for partial loan forgiveness instead of complete elimination of your debt. Either way these programs are exceptionally helpful with providing the financial relief you need to manage your finances and enjoy a more stress-free life post-graduation.
Young post-graduate Americans carry the largest amounts of student loan debt of all demographics today. This is especially true for people ranging between eighteen and thirty-five years old. College tuition and other school-related expenses continue to increase each year. Paying cash to go to college is practically unheard of today, while obtaining student loans is increasingly easier each year.
If you have student loan debt you are not alone when looking for financial relief. When you are required to begin repayment, your monthly budget instantly feels the pressure. Monthly student loan installment payments tend to be high. The worst part is this: Most of your early payments go toward paying off interest alone. In fact, this is typically true for the first portion of most student loan terms.
Alternate repayment plan options might be available, however. US student loan relief programs are facilitated by multiple sources. For example, an income-driven repayment (IDR) plan is once such option. This type of plan is designed to help people whose monthly student loan installment payments are too high to afford.
When you qualify for an IDR plan, your monthly payment amounts are reduced to an affordable number. How much your payments are reduced depends on your income criteria and household size.
Plans are also available to eliminate your student loan payments completely. When it comes to loan forgiveness student loans are given priority status by the federal government. Forgiveness of your student loan debt does not necessarily mean the elimination of your entire debt, although it might.
Depending on your qualifying criteria, forgiveness might equate to the cancelation of a percentage or portion of your total debt. Forgiveness might also equate to the cancelation of your entire student loan. Qualifying for these types of programs is slightly more complicated because of the possibility of total debt elimination. Your income, household and other determining factors initially determine the federal student loan forgiveness program for which you qualify. Once you qualify for a program, your information is next used to determine exactly how much of your debt is canceled.
Finally, if you do not qualify for an IDR plan or student loan forgiveness program, you still have other options. Some student loan providers offer loan forbearance, which defers payments until a later time. Continue reading to learn about additional student loan forgiveness programs you need to know.
