Have You Got Student Debt? Here Are A Number Of Wonderful Tips

Article Written By: Dawn Enstruthe

Many people have to use student loans to complete their education. If you were one and are now faced with student debt, the federal government has some very good news for you. There were two new programs that began in July 2009 that can help you to pay your student debt in full.

The first program is called income based repayment or IBR. This option is for student loans and can help to reduce your payments to the place where they are affordable. That means that some people with low incomes will not have to make a payment until their income increases and that nearly everyone will qualify for payments that are less than ten percent of their income. Only those with incomes over 60, 000 per year will have to pay more than ten percent of their income on student loans.

If you are enrolled in these programs, and still have debt after twenty-five years of payments, the debt is then forgiven. Time that your loan is in deferment or when you are not required to make payments on the student debt are also included in the twenty five year period required for debt forgiveness.

Furthermore, if your interest payment is more than your required payment, the government will pay the additional interest for you.

There are special requirements for persons to qualify for this program, so if you have student debt, be sure to check out the government website.

The second program is designed for persons who work for non-profit or government organizations. This program offers forgiveness for student loans that are still outstanding after you have worked for a qualifying employer and paid on the loan for ten years.

Qualifying employers include any government agency (local, state, federal or tribal). 502(c)(3) non-profit organizations or the Peace Corps or AmeriCorps. Check out the government web site for other qualifying employers.

The law is retroactive, so payments you have made since October 2007 will count toward the ten year time frame. Debts could be forgiven by October 2017 for some workers. This program can also be combined with the IBR.

Stafford loans, grad plus loans and consolidated loans all qualify for this program as long as they are included in the direct loan program. Other student debt must be switched from the Guaranteed loan program to the Direct Loan Program in order to qualify for this benefit.

In the event that you are still paying back student debt under the standard ten year program, you possibly will feel that you are drowning in debt. By switching to one of these programs, you can lower the amount of your monthly payment and see a light at the end to the tunnel. Make sure that you keep your student loan payments current and look forward to the day when they are paid in full.

About the Author

Dawn Enstruthe writes for website Ginko Financial which has details of Chicagoland consumer counseling and home refinancing after a bankruptcy

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