Bet you must be familiar with student loan. In our country, over 40 million people are having student loans at an average balance of $29,000 according to Experian.
Is this crazy? But hold on, some student loans can be forgiven under certain circumstances. Also remember, only federal direct loans are qualified for this program.
In general, there are two ways that a student loan can be forgiven:
- Working in public service
It’s obvious that having student loan forgiveness can release your financial burden to some extent. However, not everyone qualifies. Requirements vary according to different types of loans. Most public service occupation offers a student loan forgiveness program, if you serve the public, you may have the chance to get your loan forgiven.
- Making payments through an income-contingent payment plan
Some repayment plans offer forgiveness of some debt. These repayment plans are designed to help graduates who are not able to repay within 10 years.
Income-Based Repayment (IBR).
Income-Contingent Repayment.
Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE).