Graduation is not the end of your school days. Paying off student debt is the true end. Have you ever calculated how many years it will take you to pay off the debt?

According to the credit reporting company Experian, it is estimated that 40 million people now owing an average balance of $29,000.

There are two types of student loans. First one is federal loans, which are sponsored by the federal government. Second one is private loans, which include state-affiliated nonprofits and institutional loans provided by school. Most students will choose federal loan, since the interest rate of federal loan is lower than that of private loan.

Federal loans can be “subsidized” or “unsubsidized”. If you apply for subsidized loans, interest will not accrue when you are in school.

After you graduate from college, you’ll turn a new page in your life. So as your debt. Student loan interest is generally not tax deductible.

Then, is there any way to relieve the burden of student loan?

Discharging Student Loans

There must be circumstances beyond the borrower’s control that the federal loan can be discharged. Following is the situations when loans are discharged:

Permanent disability of the borrower

Closure of the school during the time of study

Falsification of the loan qualifications by the school

Use of identity theft on someone else’s part to secure the loan

Failure of the school to refund required loans to the lender

Death of the borrower

Student Loan Forgiveness

Student loan forgiveness helps release you form repaying part or all of your federal loan debt. However, not many people qualify. Most offer forgiveness is only for those who work in certain public service occupations.

The Public Service Loan Forgiveness Program (PSLF) is designed for people who are employed in public service jobs. In order to get your student loan forgiven, you must first make 120 qualifying payments, which must be made while you are working as qualified employer with tax-exempt status. That is to say, you have to qualify after 10 years on the job and 10 years of monthly payments.

If you are not working in a public service position, you still have chances to get student loan forgiveness, though it will take you longer. Federal income-based repayment plans allow for some debt to be forgiven after at least 20 years.

Last Words

Student loan helps us finish our study in college and also gives us impetus to find a good job after graduation to repay the debts. It’s not easy to pay off student debts. It’s not easy to get student loan forgiveness as well. The only thing we can do is to work harder and live longer.

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