With debt relief soaring beyond numbers like never before, more and more American students are reeling under the burden of meeting their student expenses through loans. Fortunately, the Federal government has taken this dire scenario into consideration and offers several debt relief options, so paying off your student loans is a possibility today. Here we shall look at the various options you have, and how you can make use of the available relief opportunities to minimize your burden.
The relief program that is currently available
Student loan debts have flared in the past few years that are nearly impossible for students currently on an education program to meet the burden of their overhead loans. As a result, it has escalated to such an extent that it even threatens the national financial security. The continuing recession and poor job market performance only adds to this tale of woe.
To help students come out of this current scenario, the government offers several schemes to involve in. Notable amongst these are the Federal Loan Deferment programs, Pay as you Earn Student Loan Repayment plan, Income-based student loan repayment plan, Income-contingent student loan repayment plan and Federal loan forbearance programs.
How to make use of these
Paying back loan amount is not an easy task. Along with the fixed principal amount one also has to pay an interest on the borrowed sum. This makes loans very expensive to bear with in the first place. If you are unable to pay the principal and the interest, then you are in debt. Further you may get more loans at higher interest rates to pay the previous debt. If you have more than one debt to pay off, you are in a debt trap. In such a scenario you are unable to manage your finances and it may become increasingly difficult to break away from this debt trap cycle. One of the ways to overcome and get out of such a problem situation of debt trap is cheap debt consolidation loans.
If you are a student with a federal funded student loan, you can easily enroll in any of the programs mentioned above. Your eligibility for these programs will be checked, based on certain criteria, and if you meet the target you can easily make it through.
A forgiveness program literally writes off your debt, and you do not even have to worry about paying it back. This is more difficult to achieve, although not impossible. If you think you would benefit from such an option, it is a choice you should definitely explore and understand.
Who is eligible?
All students who are on a federal funded student loan are eligible to apply for a student forgiveness plan. The government usually reserves these public service loans for people who volunteer to work with community service organizations. By serving the community through peace and community work, they not only make a significant contribution to the people around them, they also benefit from the experience obtained in the process and can also obtain a forgiveness of the loan they are unable to pay off otherwise. You will have to apply beforehand and prove your eligibility, even while you are obtaining tuitions, so apply today and have a better chance at qualifying for it.
The Obama Loan forgiveness Program is especially attractive, as it provides a huge amount of protection to students who have completed their course but have a huge debt to pay off. The important factor associated with this program is that it provides a reduced loan repayment amount, which amounts to only 10% of their monthly income making it manageable. Also, it offers debt forgiveness when the loan crosses the 20 year mark, which is a significant reduction in the previous forgiveness rate. This way the burden is reduced, and the student is able to pursue his personal interests earlier than before.
If you are drowning in debt, with no solution ahead of you, consider counseling. Get professional help in the form of Obama loan forgiveness and debt relief, and you can slowly swim out of your debt pool. So, what do you do? Know your options and find your solution right away. Don’t wait any more!