There is no doubt that you can develop in so many areas of your life with the aid of loans. The responsibility of repaying your loans belongs to you as the borrower. Under certain unavoidable circumstances, it can prove to be cumbersome to execute the responsibility. Misfortunes such as permanent disability, illness, or lack of permanent employment can aggravate the burden of repaying your loans which can sometimes be more than one and huge in value. There are now loan forgiveness programs which are provided by the government, which can relieve you from the financial struggle Even if you have taken a loan to pay for some line of education that you do not any more, the remaining balance can be cancelled if you request. You are going to learn four types of loan forgiveness programs you did not know about.
The common program of the four is public service forgiveness program. The nature of employees who qualify to apply for this program include military officers, nurses, teachers and fire fighters and many more. There are however, some factors which are taken into consideration when assessing your eligibility for the benefit of the program. The condition is that, at the time of application, you must have faithfully serviced your loan for at least ten years, as long as you are working in a government department or in a non for profit organizations. One other special condition you must meet is that the loans for which you are applying for cancellation, have to be direct loans and remember that you have a chance to consolidate your student loans in order for them to be under public service forgiveness program.
The second one is income driven loan forgiveness program. The income driven loan cancellation has interesting feature whereby you as the borrower has an opportunity to pay a lesser amount of your regular monthly repayment. Income based repayment, income contingent repayment, pay as you earn and revised pay as you earn are the four main arrangements under the income driven loan cancellation program. The four plans too are not without a condition. For your request for cancellation of your loans to granted you must have serviced your loans for atleast twenty years and you are remaining with a considerably large balance.
A special type of loan cancellation program intended for teachers only is the teacher loan cancellation program. Teacher who qualify for the program are those that have worked as teachers for five years following one another. A certain sum amount of money will be taken off from your loan burden. Furthermore, the teacher must be working in a low income elementary school or a secondary school.
The last program in the four is the Perkins loan forgiveness program. State employees who have worked for five years are eligible. One hundred percent of their outstanding loan is cancelled.
The four types of loan cancellation programs can offer you a huge amount of relief from your loan burden.