WHAT IS STUDENT LOAN FORGIVENESS?
Dec. 19, 2016
Student loan forgiveness is something that allows people to get all or part of their student loan debt discharged.If you’re paying off a student loan this kind of discharge would be very welcome! While this may seem like an easy way to get out of debt, there are several things that you should know about student loan forgiveness, because you must meet some very specific criteria before being considered.
How To Qualify For Student Loan Forgiveness
There are several ways that you can qualify for student loan forgiveness in Savannah. You may be able to qualify based on your profession. Lawyers, teachers and medical personnel are examples of people who can qualify for student loan forgiveness. The amount that you can qualify for can vary. Healthcare workers may be able to get up to $40,000 forgiven. Teachers may be able to get up to $17,500.
The location where your occupation is carried out may also qualify you for student loan forgiveness. For example, if you work in a rural or underserved area, then you may be able to get student loan forgiveness. Most programs focus on teachers and healthcare professionals who work in rural and underserved areas.
People who serve in the military may be able to get their student loan debt forgiven. Military personnel can participate in GI Bill which has been in effect since soldiers returned from World War Two, resulting in a huge surplus of young men who needed help re-entering civilian life. If the military life is not for you, then you have other options like AmeriCorps.
AmeriCorps is a volunteer program where a person commits to serving for one year. People who serve can get an educational stipend of up to $5,750. If you are unable to commit to serving, then there are still ways that you can qualify for student loan forgiveness by volunteering. For example, some programs will pay your student loan debt in exchange for volunteer hours.
In some cases, people can get their student loan debt forgiven after they have made payments for 10 years. Others will be able to get student loan forgiveness after
Issues With Student Loan Forgiveness
It is important to note that student loan forgiveness programs may have strict requirements. If you are not familiar with those requirements, then you may run into some issues. One of the most common mistakes that people make is failing to submit the proper paperwork. This will automatically disqualify you from getting student loan forgiveness.
Keep in mind that you will still have to make payments while you are waiting to get approved for student loan forgiveness. One missed payment can lead to a drop in your credit score, resulting in difficulty in getting approval for any future loans. A lower credit score can make it much more difficult to access funds later.
You should also take note of the fact that you will still be responsible for paying off any balance that is not forgiven. For example, if you owe $30,000 and $18,000 is forgiven, then you will be responsible for paying the remaining $12,000. It is important to note that Perkins Loans are treated differently from Federal Loans. You may be able to get all of your Perkins Loan forgiven, but there are more requirements that have to be met.
Furthermore, if you are currently in default, then you may not be able to qualify for student loan forgiveness. Make sure that you check the requirements before applying for any student loan forgiveness.You may also benefit from deferment which lets you delay paying off your loan if you re-enter school or adopt some other qualifying status.
Georgia Debt Relief is ready to advise you on what you need to save the most money over the life of your loan. Contact our Savannah GA office if you need help with your student loan.