Many people who have graduated high school find it difficult to repay their student loans. However, there are forgiveness programs you may be eligible to join in order to offer your services instead of paying back your loans.
The Wall Street Journal reported over 7 million students are at 12 months (or more!) behind on their loan payments. If you are one of these people, you may be able to achieve partial or full forgiveness of your loans after a set time period if you have an eligible career or meet other specified criteria.
One way you may be able to achieve loan forgiveness is by working in public service. Loan forgiveness is offered through Federal Public Service Loan Forgiveness if you’ve held a qualified position in the public sector and made 120 consecutive on-time payments. Qualified positions usually include government positions, non-profits and jobs that provide public service that are qualified for the program.
If your income is below a certain number, an income-driven payment plan could be an option to repay your loans. These plans base your monthly payments on your income which makes payments more affordable than a 10-year plan that is standard.
Some of the programs that are available include Pay as You Earn, Revised Pay As You Earn, Income-Based Repayment and Income-Contingent Repayment. Each plan requires the borrower to pay them 10-20% of their discretionary income over 20-25 years, and then the loan is completely forgiven.
You may also be able to find volunteer opportunities that will allow you to offer your services in exchange for the organization paying down your debt. One way to do this is through AmeriCorps in which you can have up to $5,700 forgiven, depending on certain criteria. Websites like SponsorChange.org can match you with nonprofit organizations that may help pay off your loans for the labor you provide. Volunteering is a great way to pay off your loans while also giving back to the community.
Check to see if there are programs that can help you pay off your debt. Visit https://blog.mint.com/how-to/top-7-ways-to-get-student-loan-forgiveness-in-2016-031016/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+MyMint+%28Mint+Personal+Finance+Blog%29 for more information on specific loan forgiveness programs.