Student Loan Debt Relief – 4 Student Loan Debt Relief Programs
Student loan debt forgiveness plans are government-backed financial means to pay off student debts. There are many federal student loan debt forgiveness plans, and more than a dozen state-funded programs. However, there is no guarantee that these programs will make you eligible for the program. You need to check with the federal government to find out if you qualify for any student loan debt forgiveness plan that they offer.
There is no lack of student loan debt forgiveness experts. Most private and government agencies offer some sort of financial education to help people negotiate better deals in the long run. But there is not much that you can do once you have entered school. It is difficult, costly, and confusing when it comes to figuring out just how much you should pay back your loans. This is why most students never make a complete payment.
The good news is that there are now professional student loan debt relief companies that will help you. They will negotiate with your lenders to get you the best deal possible. The great thing about these companies is that they often have inside knowledge of which the lender is willing to reduce your student loans to an affordable monthly payment. They can also help you determine what type of student loan debt forgiveness program would be best for your specific circumstances.
One of the best student loan debt forgiveness program offers is the new Federal Direct Loan Consolidation Plan. This program offers students an opportunity to consolidate all their federal student loans into one single loan. By taking this action, students will be able to save money each month because all their loans will be combined into one single payment. This payment will be lower than what they were paying each month previously. It is important to note that students are not eligible for this program until the end of their college grace period.
Another great student loan debt forgiveness program is the Public Service Loan Gratification Plan. With this program, graduates will be able to use federal stimulus dollars to pay for their education. When using this plan, students must begin to repay the consolidation loan in about five years after graduation. In addition, graduates must use this plan for ten years after graduation in order to be allowed to utilize the stimulus money. There is no grace period associated with this option.
The third option available to graduates looking for student loan debt forgiveness programs is the Direct Loan Servicing program. This program offers a two-year grace period during which time the borrower does not have to repay any of the federal student loans that he or she has accumulated. Repayment begins once the borrower begins employment in a job that pays enough money to provide for a substantial benefit after graduation. This plan is ideal for students who were not able to qualify for one of the other two options because they do not need to prove a financial need before qualifying for this one. This also works in conjunction with the federal student loan debt forgiveness plans mentioned above. After graduation, graduates are required to begin paying back the loans in order to continue to enjoy this benefit.
The fourth option out of the four available student loan debt forgiveness plans is a lump sum repayment plan. This repayment plan requires the borrower to repay all of the student loan debt relief loans at once and to make a single monthly payment. This payment plan should be done at the beginning of each month in order to maximize its effectiveness. A borrower’s credit history will not affect this payment plan. There is no grace period associated with this repayment plan. Graduates are not eligible for any federal student loan debt forgiveness during their time of eligibility.
All four of these student loan debt forgiveness plans have several advantages and disadvantages. For most people, applying for federal student loan forgiveness will be their first step towards financial freedom. However, in order to qualify for this financial benefit, it is recommended that graduates take the time to explore all of the available programs before settling on a plan that will work for them. This will ensure that they receive the maximum student loan debt forgiveness assistance.