Figuring out which Sallie Mae loan forgiveness programs you may qualify for is not a simple task. It will take time and effort on the borrower’s part in order to figure out which program applies to their personal situation. For some of the more advertised programs, your degree and employment will qualify for partial loan forgiveness. The other forgiveness options are something which you may need to either educate yourself on or hire someone to do it for you.
There are different government programs that provide student loan forgiveness relief. Public service workers, especially teachers, have the opportunity to participate in a loan forgiveness program. In order to qualify, there are a few hoops to jump through. A loan specialist is a good service to help work through the complexities involved in applying for a student loan forgiveness relief program.
Public school teachers who work in low-income areas and have Stafford and/or Perkins loans can qualify for forgiveness. The school must qualify in order to have entire Perkins loans are forgiven or up to $500 for some teachers and $17,500 for others who have Stafford loan debt. There’s a lot to be thankful for if you do qualify for these programs.
The Army, Navy, Air Force and National Guard have their own student loan relief forgiveness programs. The level of rank achieved in the preferred branch will determine the amount of loan forgiveness as well as other qualifying factors. Contact the preferred branch directly in order to find out what forgiveness is offered and what you will be expected to do in order to receive it.
Income-Based Repayment Plans are for just about everyone. These programs adjust the monthly loan payments according to your discretionary income. That means that the cost of living expenses is subtracted from net monthly income. In fact, no more than 15% of the discretionary income will be calculated into your monthly student loan payment. In some circumstances, there may be times when a person qualifies for a $0 payment. Each year, current finances are used to recalculate monthly payments. After 25 years of making payments, the remaining balance is completely forgiven.
There are public service loan forgiveness programs for those in public service positions who have borrowed money from the William D Ford Federal Direct Loan program. Employees must be full-time in a public or non-profit sector job, make 120 qualified payments and will then have the remainder of their debt forgiven.
The government offers some great opportunities for graduates to save on their student debt. The IRS will collect taxes on the amount forgiven. You are still saving, but it is in your best interest to prepare for what you may owe the IRS in return for qualifying for forgiveness programs. Many people do not think about the end results when they are focused on the here and now of affording such high debt.
Talk to your financial adviser or tax service about the tax effects of loan forgiveness. You can also work with a student loan relief service who will work your loan portfolio through any qualified program. Click for more info.