It’s one of the biggest problems for students – the increasing debt that hangs over them as they progress through the education system. Student debt is a massive burden on those who leave the system and start work, too, and the repayments can eat into your monthly income in a much greater way than you might have expected. There are ways that you can lessen that burden, and we would like to tell you how to do it. Are you interested? If so, read on, and we hope we can help.
First, we should let you know that there are a number of different ways in which you can reduce or even wipe out your student loan. The main methods are loan forgiveness, and loan discharge, and there are notable differences between the two. We will talk about loan forgiveness first.
What is loan forgiveness? It’s a scheme whereby your student loan debt can be wiped out if you work in one of a number of qualifying professions for a required period of time. This includes various public service jobs, as well as some teaching positions in certain qualifying schools. The various qualifying circumstances for loan forgiveness for graduates cover quite a wide variety of possibilities, so it is worth checking out in detail if you think you may be one of those who can wipe out their debt.
Loan forgiveness is a major benefit for a lot of people and can make your life a lot easier. Now let’s talk about loan discharge.
There are several ways in which you can achieve loan discharge, and you need to look closely at the qualifying criteria to see if you are eligible. Firstly, you may be entitled to discharge if you suffer from permanent disability. The terms for this option are detailed, so you should consult an expert to see if you are entitled. You may also be entitled to loan discharge if the school you are enrolled in happens to close; once again, there are certain qualifying criteria involved that you should check out.
If you enter one of several professions, for each year you remain in service in that profession you can have a percentage of your loan wiped out. How much the percentage is depends upon the profession you take up and the service you provide. Qualifying professions include: members of the armed forces; nurses and some other medical technician jobs; firefighters and police officers; head start workers; child and family services, and those involved professionally in Early Intervention Services.
There are also other extenuating circumstances in which your loan can be discharged. For example, if you were wrongly forced to take out a loan without your authorization, or were a victim of identity theft. Also, it is possible – although not commonplace – to be relieved of student debt should you declare bankruptcy, and in the event of the death of the person the loan refers to, the family can have the loan discharged by application.
Check out in detail if you are entitled to loan forgiveness or can have your loan partly or entirely discharged – it could save you a lot of money.