If you’re paying a large amount of money every month to your student loan debt, you’re probably wondering if you’re doing everything you can to pay off your loans. For some, it may seem like a logical choice to enroll in a student debt forgiveness program. These options are available to any American with federal student loans, but they may not be appropriate for everyone.
There are two primary ways to earn student loan forgiveness. The first — and most popular — is by enrolling in an income-contingent payment plan, which usually involves making a minimum payment on your debt for decades. At the end of the income-contingent plan, you get the rest of your debt forgiven.
The other way toward achieving debt forgiveness involves working in public service. Before qualifying for the public service program, however, you will need to make 120 of your student debt payments on time. These payments may be made while you’re working for a non-profit or government organization that has tax-exempt status. That said, this is clearly a long-term commitment, equaling 10 years of regular monthly payments and a decade spent in public service.
For some student loan holders who are already working in public service — or who wish to have a public service career — enrolling in the public service student loan forgiveness program is an easy decision to make. For others, they might decide that this program isn’t appropriate for them.
If you’re currently overwhelmed by student debt, a King County debt lawyer can help you learn about your debt resolution options. A lawyer can provide different solutions you may not have considered, which could help you resolve your outstanding student loans and other debts faster than you previously believed possible.
Source: Investopedia, “Debt Forgiveness: Escape Your Student Loans,” Bobbi Dempsey, accessed Feb. 08, 2017