Loans play an importantly indisputable role towards progress in various aspects of your life. Ideally, the burden of repaying the loans purely rests on you. Under certain unavoidable circumstances, it can prove to be cumbersome to execute the responsibility. Even worse is when you get yourself into the web servicing multiples of loans, and you are not in employment or you have been hit with a disability and you your ability to work and earn in put in jeopardy. Thanks to the loan cancellation programs now in place. You have an opportunity to apply for relief from the financial responsibility of repaying an educational loan, whose form of education you are no longer interested in. The common loan cancellation programs are four in number.
The common program of the four is public service forgiveness program. Public servants such as teachers, nurses, fire fighters and military personnel, just to mention a few, can qualify for the benefits of the program. There are however, some factors which are taken into consideration when assessing your eligibility for the benefit of the program. All those employees working in the government or in a non for profit organization and have repaid their loans without default for ten consecutive years are eligible for the program upon application. One unique feature about the program is that for the loan to qualify under the same, it must be a state direct type, although there are options of tying all other student loans into one for them to qualify as well.
The other alternative loan forgiveness program is the income driven loan forgiveness program. With income driven loan cancellation program you will save a lot of money since you will be allowed to pay a portion of the regular monthly repayment for your outstanding loan. You will get to benefit from any of the four alternatives under income based loan forgiveness program, which include, pay as you earn, revised pay as you earn, income contingent repayment, and income based repayment. Income driven loan cancellation arrangements come with conditions as well. For your request for cancellation of your loans to granted you must have serviced your loans for atleast twenty years and you are remaining with a considerably large balance.
Thirdly is teacher loan forgiveness. As a teacher, for you to qualify for the benefit of the program, you must have worked as a teacher for five consecutive years. With teachers loan forgiveness program, a lump sum amount of money is deducted from the total sum of the loan outstanding. It is however for those teachers who are working in low income public elementary and secondary schools and have got direct loans and Stafford loans.
As alternative of loan cancellation program, you can apply for Perkins loan cancellation program. It is good news for all public servants who have worked for five years. Interestingly, this Perkin loan cancellation program, the whole amount of loan outstanding is done away with.
The four types of loan cancellation programs can offer you a huge amount of relief from your loan burden.