What You Need to Know About Student Loan Forgiveness
There are plenty of students that have applied for a loan in order for them to finally get their dream jobs. This seems like a good plan at first but what happens if you end up getting a job that does not pay well? If you are having a hard time paying for your remaining student debts, then you have to take advantage of the student loan forgiveness program. For those who have not heard of this in the past, this is a program that aims to financially assist those who are working in the public service sector by exempting them from paying their debts. This act was passed by the congress on October 1, 2007. Yes, it is true that the student loan forgiveness program has strict stipulations and conditions, however, a lot of people who have a low-paying job still benefit a lot from it. The types of loans that fall under this program are the following: Federal Direct Plus loans, Federal Direct Consolidation loans, and even Federal Direct Stafford loans.
If you are currently employed under any public service job and you have made at least 120 payments for your loan in the past, then applying for this program will not be a problem for you. If you are wondering what jobs qualify for this said program, these are the police force, military, public health/ education, and any government-related jobs (can’t be under the Congress or Senate). Even if you are a librarian for a public school or a tribal college instructor, you can still apply for this program.
Because it was mentioned earlier that this program was only approved on the 1st of October 2007, any payments made before this date will not be counted. They also don’t allow any applicants to use any extended repayment plan or a graduated repayment for this said program. Every payment must also be made while you are still employed for any of jobs mentioned earlier, otherwise, they will reject your application. In case you decided to quit your job while paying your loan, you will not be eligible to apply for the student loan forgiveness program.
The student loan forgiveness program will definitely benefit you a lot especially if you are only starting to work and you do not earn a lot to make a living. Yes, the program’s stipulations and conditions may seem daunting at first but it is NOT really that hard to qualify. For as long as you do not quit your job and you work in the public sector for an extended period of time, this task should be a walk in the park for you. Yes, applying for this said program is time- consuming and sometimes exhausting, however, once you are approved, you will find out that all of it was worth it. This is the type of program that you must never ignore.