Beginning in October, 2018, the US government will allow borrowers who have been in deferment or forbearance for more than three years to have their student loans forgiven, which means that if you were making payments and not receiving “absence of collection,” as defined by the Consumer Financial Protection Bureau, you’re eligible for relief. In this blog article, we’ll cover whether this could be a good option for you in the future.
The Student Loan Forgiveness Program: Pros and Cons
The Student Loan Forgiveness Program is a new offer that allows students to have their loans forgiven if they work in public service. The program provides 50% of the remaining balance when certain requirements are met. This would allow for many people to enter the financial aid system and earn a degree without debt. However, the requirements for this program are strict; one cannot just quit their job and expect these benefits without consequences!
Over the past few years, the federal government has implemented and offered many new programs to encourage students to complete their degrees. Since the program was created in 2007, it’s been able to forgive more than $35 billion in debt for more than a million borrowers. However, because there is no cap on how much money can be forgiven, some borrowers find themselves with too much debt and no way out of it.
Whether the Student Loan Forgiveness Program is right for you
Whether the Student Loan Forgiveness Program is right for you depends on many personal factors. If your loan debt is high and you don’t have a high income, the program might not work for you. But if you are more fortunate and your loan debt is lower, then this could be a great option for you.
For most people, the Student Loan Forgiveness Program is a great way to pay off your student loans. It saves you from having to make payments on your federal student loans for ten years. The only downside is that you need to make 120 qualifying payments on your student loan before it’s forgiven.
Alternatives to Student Loan Forgiveness
Many people are eligible for student loan forgiveness. Unfortunately, not everyone is aware of the program and only a small percentage receive it. If you qualify for the program, you should read about the alternatives to student loan forgiveness and how they work.
If your income and loan balance don’t qualify for the full Loan Forgiveness program, there are a few other options. One of these is Public Service Loan Forgiveness (PSLF). Another option is Income-Based Repayment (IBR), which would be preferable to public service loan forgiveness if your income is high enough.