Student Loan Forgiveness Programs You Should Know About in Franklin County, Ohio
Paying back a student loan can be tough. The staggering interest rates and principles are often the main reason why the loans are not manageable and often go into default. Most graduates spend years paying back student loans that eat up a significant portion of their income. Thankfully, the government has implemented a loan forgiveness program to help ease the burden.
The following loan forgiveness options are available. There are a few you may qualify for:
Public Service Loan Forgiveness
This program is for individuals who work in public service. To qualify to get part of your loan forgiven you must have a full-time job with the local, federal, or state government.
Income-Based Repayment Forgiveness
While this is not considered a traditional loan forgiveness plan, it can go a long way in reducing your loan payments. In most cases, your monthly payment is about the equivalent to 15% of your income. When you apply, you will be required to show that you are facing a financial hardship. After 20 years, the remainder of the loan will be discharged.
Pay As You Earn Forgiveness
This program has a lot of similarities to the IBR program. However, this program only 10 percent of discretionary income is counted. Proof of financial hardship is also a requirement. After 20 years of consistent payments, the remainder of the loan will be forgiven.
Forgiveness With Revised Pay As You Earn
Anyone with a federal student loan can qualify for this program. Monthly loan payments have a 10 percent cap. You will also need to requalify for this program every year. If you were a graduate student, the remainder of your loan will be discharged after 25 years.
Federal Perkins Loan Cancellation
The following individuals may qualify for this program: Teachers, librarians, police officers, nurses, firefighters, active military, and service volunteers like the Peace Corps.
You would qualify if you worked in one of these fields, and can prove that your loan was used to cover certain educational expenses.
If you need more information, reach out to a Wood & Brewer, a Franklin County, Ohio, bankruptcy attorney. They understand how dire paying back student loans can be. Call them for a no-risk consultation so they can help you through the process.