Federal Student Loan Forgiveness – How to Qualify For Federal Student Loan Forgiveness
If you are an adult, you are eligible for federal student loan forgiveness programs. This can save you hundreds of thousands of dollars on interest and reduce the overall amount you have to pay back on your student loans. If you are an adult student with a student loan, there are many options available to you. Here is what you need to know about what you qualify for.
The Non Profit Student Loanclosure Program provides full Federal Student Loan Forgiveness advantages for all full-time, licensed government workers through the Public Service Loan Forgence Program (PSLF). This program is run by the United States Department of Education through the Federal Direct Loan (or Eddy) Program. The direct loan is one of the two types of federal student loans that require payment directly from the borrower. The other type is the Federal Perkins Loan or Federal Unsubsidized Student Loan. Both types of loans come from the federal government. The PSLF program offers federal student loan forgiveness benefits only to those who work in education-related positions.
You must be working in the federal government or a non-profit organization to be considered for either of these two types of loans. There are also some private lenders who offer federal student loan forgiveness. These private lenders include banks, credit unions, nonprofit organizations, and other financial institutions. In order to apply for either of these loans, you must first visit the Education Perkins Loan website. This will give you information about how to apply for federal student loan forgiveness and how to find information on approved lenders.
When you visit the Education Perkins website, you must complete an application. On this application form, you will need to tell about your income and any other outstanding debts you may have. You will also need to tell what you want to do with your federal student loans and how much you plan on paying each month. If you are currently in the program, then you qualify to reduce your monthly payments by up to 50% based on your income. When you find out how much money you qualify to reduce your monthly payments and what the requirements are, you should immediately apply.
If you do not qualify for federal student loan forgiveness, you can still consolidate your federal debts into one account. You need to be enrolled at least part time in a college or university to consolidate federal debts. You can use the consolidation program for federal debt only. It cannot be used to consolidate private loans, like you were able to do when you were still in school. However, if you choose to use the federal program, you qualify for a federal subsidized consolidation loan and you will save money compared to what you would have paid in private student loan repayment.
Federal direct consolidation loans are offered through lenders that participate in the federal government’s Direct Loan Consolidation Loan Program. Private student loans can be consolidated through private lenders, but private loans cannot be consolidated into Direct Loan Consolidation Loans. So, if you choose to pay back your federal Direct Consolidation Loan via private lenders, you will be charged interest on what you would have paid if you had used a federal consolidation loan.
What jobs qualify you for federal student loans and what jobs qualify you for non-profit forgiveness? Nonprofit companies can consolidate federal student loans for their employees. Most non-profit organizations also offer some sort of income contingent repayment option, which can be used to combine loans that borrowers have agreed to repay. Most of these options require that borrowers be current on all monthly payments before they will qualify. This is good news for borrowers who have experienced a recent loss of income and are unable to continue making their minimum monthly payments.
What loans qualify you for federal student loan forgiveness? One option is deferment. A deferment allows you to continue to make your payments until you get caught up on your loan. Another option is forbearance. With forbearance, you can continue to make payments as long as you meet all the terms and requirements, but once your current loan is finished, your payments will end.