Tuesday, August 10, 2010

College Grads With Federal Student Loan Debt May Qualify For Student Loan Forgiveness

Financial freedom awaits?

Many college graduates often find that they owe money for student loans, which were borrowed in order to meet the costs that seem to be on the rise at many universities and colleges across the nation. Typically, students will fill out a FAFSA form when seeking federal financial aid and many will obtain some form of federal student loans to help meet their college costs.

Yet, when it comes time to repay these college debts, many people fail to realize that there are forgiveness options for federal student loan debt if someone is in a particular career. For instance, anyone who works in a public service field may qualify for federal student loan forgiveness after 10 years of repayment.

Usually, this forgiveness comes from being enrolled in a Direct Loans repayment plan and being employed in a public service field when one applies for and finishes their payments in a forgiveness repayment plan. There are options for student loan forgiveness for non-public service workers, but these will require 25 years of repayment for those who qualify.

Direct Loans is a program within the Department of Education that handles student loans and anyone who feels they may qualify for student loan forgiveness or wants to begin a repayment plan that will allow them to have their debt forgiven after the timeframe has expired, may want to contact their lender to see what options are available for that particular college debt situation.

While the forgiveness plans can be very beneficial for those who may have acquired a large amount of federal student loan debt, they are repayment assistance options for anyone who may not have enough debt where these repayment forgiveness timeframes would be of help. While student debt is sometimes unavoidable, with forgiveness options and repayment assistance plans, like income-based repayment programs, student debt can be easily managed after college and does not have to be a financial burden for years down the road.


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