The Wall Street Journal has come up with a shocking report. It claims more than seven million students have failed to clear up instalments for at least, one year. That is not to say only the students are defaulters. Falling behind payment leads to a dreadful situation. If you land up in such a problem, it could push you to more bitter consequences in future.
Students have an opportunity to get out of the crisis, thanks to student loan forgiveness programs. It is 2016 and there are latest and more effective ways to be approved for such loan forgiveness. By following a specific set of criteria, it is possible to qualify for partial and even full forgiveness of student loans over time.
Here are some most effective ways for student loan forgiveness in New Year.
Take a job in public sector
Federal Public Service Loan Forgiveness or PSLF allows for forgiveness of remaining loans to your name if you start working as a public servant in a qualifying post and make 120 payments. Here, qualifying jobs refer to government positions at federal, state or local level and in non-profit organizations.
This program serves as an excellent option for those who have always dreamt of making a career in public sector. The loan will be waived after a decade irrespective of your earning.
Volunteering with specific organizations
Volunteering with some organizations will give you a chance not only to earn but also to qualify for student loan forgiveness program. There are some non-profit organizations that take up responsibility to get entire loan cancelled if you work for them.
Log in repayment plan
I’m not talking about any repayment plan but only those driven by income. Such programs cover PAYE (Pay As You Earn). IBR (Income-Based Repayment and REPAYE (Revised Pay As You Earn). As per these plans, you have to cough out 10-20 percent of your flexible income over 20-25 years but these will help you enjoy total forgiveness.
Join defence force
Working in a military is a pride for many. But do you know that it could also bring a relief from mammoth student loan debt? Some wings of America’s military have offers of loan forgiveness. The Army and Navy can mange arrangement of cancelling a larger sum of debt within the limit permitted by law for active duty enlistments.
If you don’t like full-time work in military, there is another option open to you. National Guard does not require you to do full-time service for partial or total loan forgiveness.
Many students may not like the idea of joining defence force to get remaining loans to their name waived partially or fully. However, they are less likely to turn their nose at the idea of earning money at their college.
Try for Perkins loans cancellation
If as a student, your post-graduation career meets some specific criteria, there is a chance that Federal Perkins Loans may be waived. To qualify for such loan cancellation, you have to work in specific qualifying positions as per requirements of public sector. These qualifying positions include defence forces, certain health care posts etc and working in capacity of librarian, attorney etc also makes you a qualifying candidate for Perkins loans cancellation.
These are high-need professions leading to a rewarding career and I do hope you won’t mind working in any of such qualifying spots that will earn you double delights over time.
Check requirements of your state
There are several student loan forgiveness programs specific to state levels. These programs vary from one state to another though usually serves to those who have already started working in public sector in qualifying posts like lawyers, professors, doctors etc.
For example, New York City student loan forgiveness program is designed to offer $24,000 for teachers who have already six-year working spell with an authorized New York City Department of Education.
Search for employment-based loan cancellation
Special student loan cancellation program is not for everyone. Such programs are based on which profession you are associated with. Here are some most popular special student loan forgiveness programs based on your profession.
- Health Professionals Loan Repayment Program for healthcare professionals
- NIH Loan Repayment Program for doctors
- Equal Justice Works for lawyers
- Teacher Loan Forgiveness for teachers
No relief is possible if you are not ready for greater sacrifice. However, by sacrificing a little at present, you can ensure a worry-free move in future. The financial crisis that engulfed you immediately after graduation due to you are falling behind timely instalment will come to end if you go with any of the above mentioned smart solutions.
Before opting for any particular program for loan forgiveness, you must assess if it is the right way to go with. I am sure you will not like to get into more trouble by choosing a wrong program. Having patience, diligence and intelligence in a situation of debt trap will guide you a long way towards an effective loan forgiveness program that suites your goals and lifestyle.
Loan forgiveness program is an excellent way to help you with debt management. The only difference is you have an option to get remaining of your debt cancelled.
Do you have any better idea to get your student loan cancelled? If yes, please share it with us. Together, we can guide many to live a debt free life