In the event that you had to take student loans so that you can conclude your education, the government has some good news for you. Two new programs began in July 2009 that may help you to get that student debt paid in full.
The first program is called income based repayment or IBR. This option is for student loans and can help to reduce your payments to the place where they are affordable. That means that some people with low incomes will not have to make a payment until their income increases and that nearly everyone will qualify for payments that are less than ten percent of their income. Only those with incomes over 60, 000 per year will have to pay more than ten percent of their income on student loans.
If you are enrolled in these programs, and still have debt after twenty-five years of payments, the debt is then forgiven. Time that your loan is in deferment or when you are not required to make payments on the student debt are also included in the twenty five year period required for debt forgiveness.
Also, if your interest payment is more than your required payment, the government will pay the additional interest for you.
Your student debt must meet certain criteria, so be sure to read the government website for more information and to see if you qualify.
The second program is for persons that work in certain industries. This program offers forgiveness of any student debt that is still outstanding after you have worked for ten years at a qualifying employer.
To qualify for this program you must work for a government agency, which may be tribal, federal, state or local) a 501(c)(3) agency or the Peace Corps. Other organizations may also qualify so check out the website for more information.
The law is retroactive, so payments you have made since October 2007 will count toward the ten year time frame. Debts could be forgiven by October 2017 for some workers. This program can also be combined with the IBR.
Student debts that are covered include all Stafford loans and Grad PLUS loans. If consolidated loans are included in the Direct Loan Program, they are also included. Guaranteed loan program debt will have to be switched over to Direct Loans in order to qualify.
In the event that you are still paying back student debt under the standard ten year program, you might feel that you are drowning in debt. By switching to one of these programs, you can lower the amount of your monthly payment and see a light at the end to the tunnel. Make sure that you keep your student loan payments current and look forward to the day when they are paid in full.
Dawn Enstruthe writes for website Ginko Financial which has details of Chicago credit counseling and home refinance after a bankruptcy.
The first program is called income based repayment or IBR. This option is for student loans and can help to reduce your payments to the place where they are affordable. That means that some people with low incomes will not have to make a payment until their income increases and that nearly everyone will qualify for payments that are less than ten percent of their income. Only those with incomes over 60, 000 per year will have to pay more than ten percent of their income on student loans.
If you are enrolled in these programs, and still have debt after twenty-five years of payments, the debt is then forgiven. Time that your loan is in deferment or when you are not required to make payments on the student debt are also included in the twenty five year period required for debt forgiveness.
Also, if your interest payment is more than your required payment, the government will pay the additional interest for you.
Your student debt must meet certain criteria, so be sure to read the government website for more information and to see if you qualify.
The second program is for persons that work in certain industries. This program offers forgiveness of any student debt that is still outstanding after you have worked for ten years at a qualifying employer.
To qualify for this program you must work for a government agency, which may be tribal, federal, state or local) a 501(c)(3) agency or the Peace Corps. Other organizations may also qualify so check out the website for more information.
The law is retroactive, so payments you have made since October 2007 will count toward the ten year time frame. Debts could be forgiven by October 2017 for some workers. This program can also be combined with the IBR.
Student debts that are covered include all Stafford loans and Grad PLUS loans. If consolidated loans are included in the Direct Loan Program, they are also included. Guaranteed loan program debt will have to be switched over to Direct Loans in order to qualify.
In the event that you are still paying back student debt under the standard ten year program, you might feel that you are drowning in debt. By switching to one of these programs, you can lower the amount of your monthly payment and see a light at the end to the tunnel. Make sure that you keep your student loan payments current and look forward to the day when they are paid in full.
Dawn Enstruthe writes for website Ginko Financial which has details of Chicago credit counseling and home refinance after a bankruptcy.
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