How Student Loan Forgiveness Can Be an Option

Those who have amassed large amounts of education loans often consider taking an extra job or simply defaulting on their agreements when they are unable to repay them in a timely manner. The good news is there are several forgiveness programs available for borrowers who need relief. Whether that relief takes the form of refinancing or opting for one of the structured write-off programs, there is hope. Here’s a quick look at the various programs available for young graduates and their parents who need financial relief:

Parent PLUS Programs for Mom and Dad

It’s true that many parents who took out Parent PLUS loans to assist their college-age children have a hard time keeping up with payments. These agreements don’t come with the low-interest rates that similar packages offer, which means that millions of parents are currently saddled with education-related obligations and looking for Parent Plus relief programs, like those offered by Earnest.com and other similarly reputable companies.

There’s a trick to getting into one of the Parent PLUS programs: first, you have to convert it into a consolidated contract. After that, an educational resolution is only a step away. Once your loan is consolidated, you can opt for an income-contingent repayment plan or an agreement based on employment with a public service agency. Both methods can take between 10 and 25 years, but are a solid way to eliminate obligations you took on to help your children attend college.

Another way to eliminate this indebtedness is to transfer the balance to your child’s account. This requires a couple of steps, the first one being that your child must apply for refinancing. At that time, you can apply to have your balance added to the child’s total balance. This makes good sense if you are on a fixed income and your child is gainfully employed.

Programs for Teachers

If teaching is your main profession, you may be able to have some or all of your liability written off. Each state has different opportunities but on the federal level, you can earn up to $17,500 in write-offs if you teach in a low-income public school. The eligibility requirements typically involve full-time teaching for five or more consecutive years.

Military Programs

Joining any branch of the military is a fast way to eliminate a large chunk of what you owe, up to $40,000 depending on which branch you choose and how long you serve. One way to maximize the amount is to serve for three years and work to achieve the highest rank possible. The longer you serve and the higher your rank, the better. But be careful because the branch you select makes a big difference and each one has its own versions of helpful programs.

Working for a Non-Profit

You can also reduce what you owe just by working full-time for certain non-profit organizations. It’s possible to join this program by working for a local, federal or state government agency for 10 years and making all your payments on time. If you do that, the remainder of your balance is eliminated.