If you are carrying high student loan balances while you struggle to make your way in the workforce, you aren’t alone. Many graduates are facing the tough reality that is debt obligations for the next 20 years just in hopes of climbing the corporate ladder. But, it’s not as ominous as it sounds. College gives many the chance at a career they wouldn’t have had without it, even if that does come at a price.
Balancing The Burden
Recognizing the need for student loan debt relief, the government has designed several ways to assist graduates with their repayment plans. There are several factors that can qualify you for one of four programs:
1. Public Service Loan Forgiveness – is a program that can eliminate your loan balance after 10 years of repayment if you have served in a public service position during that time. Some of the eligible positions are law enforcement, military service, emergency management, public health services, public education, and various non-profit organizations.
2. Educator Loan Forgiveness — is a program that provide anywhere between $5,000 and $17,500 in loan forgiveness for qualified teachers in low-income or high-need areas. Eligibility is for teachers that have served at least 5 years as a secondary, or specialized math or science teacher in schools in need.
3. Income Based Repayment — is a program that allows you to cap your monthly payment at a maximum of 15% of your disposable income. Any remaining balance after 25 years of repayment can be eliminated without penalty. This program is reserved for those with low to lowest middle class employment, who may also be carrying dependents.
4. Pay As You Earn — is a program that caps monthly payment maximums at 10% of disposable income, and forgiving remaining debt balances after 20 years.
Qualifying for student loan debt relief can be tricky, which is why it is always important to have a student loan lawyer help you apply. Your lawyer can review your situation to determine your best source of relief and help you secure lower payments and prevent student loan debt default.