Without loans you may not do some important things in your life fast as you would want them to be. The responsibility of repaying your loans belongs to you as the borrower. You can be lucky to qualify under some special terms, for cancellations of all or part of your whole loan debt burden. 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. Thanks to the loan cancellation programs now in place. 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. The common loan cancellation programs are four in number.
Public service loan forgiveness program is the first one. 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. All those employees working in the government or in a non for profit organization and have repaid their loans without default for ten consecutive years are eligible for the program upon application. One unique feature about the program is that for the loan to qualify under the same, it must be a state direct type, although there are options of tying all other student loans into one for them to qualify as well.
The other alternative loan forgiveness program is the income driven loan forgiveness program. With income driven loan cancellation program you will save a lot of money since you will be allowed to pay a portion of the regular monthly repayment for your outstanding loan. 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. Income driven loan cancellation arrangements come with conditions as well. As long as you have been able service your loans for a minimum of twenty years, and have quite huge loan balances, you stand to qualify for the cancellation.
A special type of loan cancellation program intended for teachers only is the teacher loan cancellation program. The first condition that you must meet for teacher loan forgiveness program is a proof that you have for five uninterrupted years. 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.
Perkins loan cancellation is the fourth one. It is good news for all public servants who have worked for five years. One hundred percent of their outstanding loan is cancelled.
The four loan forgiveness programs are major ones available for students loan borrowers.