Private Student Loan Debt Relief Info – Government Will Offer Student Loan Debt Relief
Are you in need of some student loan help but don’t know how to start getting those federal student loan debt relief grants? It’s not as hard as it may sound to find federal student loan debt relief help these days. As it was once, getting student loans can be confusing and stressful. Plus, with student loan debt forgiveness programs, your federal student loan debt will be much easier to manage after graduation. Let’s take a look at how to pay off student loans with federal student loan forgiveness programs.
First, find out what happens if you don’t repay your student loans. Some federal programs forgive the remaining balance and then make your monthly payments much easier. How much do you owe left on your outstanding loans? If you’re finding that your monthly payment is higher than your income, this is the time to get help. There are federal loans that forgive the remaining balance, and there are also repayment plans that can save you money each month.
Some people worry about student loans forgiven when they reach a certain amount of taxable income. The problem is that student loans are not all paid back the same way. Some federal student loans forgive the remaining balance while you’re still in school, but not others. The IRS has a chart showing what types of student loans will be forgiven in your case, and if you’re eligible, how much of a forgiven balance you’ll receive.
If you have enough equity in your home, you could be able to consolidate your student loans to one of these two programs. Qualifying students must have been in school for at least five years and be currently enrolled. Then, there’s the individual federal student loan forgiveness program for graduates who were eligible to qualify for both programs under the Regular Student Loan Repayment Plan (PRLS) or the Perkins Student Loan Consolidation Plan (PLOCP). Both of these programs award students who meet the qualifications of an equal amount for their outstanding student loan debt.
Many people don’t know that there are repayment plans that can eliminate a portion of their student loan debt. One of these plans is the Offer In Compromise (OIC), which requires lenders to forgive a portion of your loan. You don’t have to pay the full amount, but you must pay it off over ten years. This is different from the standard student loan forgiveness plan as a portion of your loan is forgiven; however, you don’t need to repay this loan in full. A student loan forgiveness program is good for graduate students who demonstrate good financial responsibility and can’t meet their payment plan requirements due to the economy or other reasons.
There are several factors that go into the eligibility of each student loan repayment plan. For instance, if you’re a single mother, you would be eligible to either the Perkins Student Loan Consolidation Plan or the Regular Student Loan Repayment Plan. Each plan has different requirements for income, credit, assets, employment history, and more. Once you complete an approved application, you’ll get the needed paperwork to begin the repayment process.
When you start repayment, any unused student loan forgiveness funds will be applied to the principal loan amount. The federal student loan forgiveness program does not require a minimum qualification, so even the most unlikely of circumstances can make you eligible. You have to be at least 18 years old and a tax paying citizen to apply for student loan forgiveness. Your taxable income also has to be at least the total of your AGI plus the qualifying interest income. If you’re in default of another federal loan, such as a student loan, you must contact the lender for specific information.
The federal student loan forgiveness program will not apply to all eligible federal loans, as there are several other exceptions. Some of the loans you may qualify for are: Perkins, Direct, Guaranteed, Health Professional, Sallie Mae, Subsidized Stafford, Unsubsidized Stafford, and PLUS. To learn more about which of these programs may apply to you, contact a student loan consolidation service today. They can help you determine if you qualify and can tell you what your payments could be with each of these types of repayment plans. You may receive up to 100 percent interest relief on the portion of your private student loan debt that comes from the federal government.