There are many people out there who have found themselves deeply in debt thanks to student loans, and while some of these people may have done something wrong to get themselves into such a situation, there is no doubt that many others were not adequately prepared for the unexpected. That being said, there are still some things that you should know about student loan forgiveness programs. Although you probably won’t be able to apply for these yourself, it never hurts to ask, and if you do find out that you qualify, then you will be one step closer to financial freedom. As long as you are careful and follow the instructions that come with your new loan, you should have no problem getting the help that you need.
The first thing that you need to know about student loan forgiveness is that you probably don’t qualify. When it comes to federal loans, the only way that you can qualify for this type of relief is if you have made four or more unsubsidized loans over the past couple of years. Unsubsidized loans are those that you had to pay for on your own, so you will not qualify for this type of relief with those types of loans. Instead, you must either have had a subsidized loan or a Direct Loan. For more information on the exact types of loans that you must have in order to apply, you will need to go online and fill out an application.
Those who do qualify for this assistance will find that they will get a lot of help with their loans. Who would qualify for student loan forgiveness programs varies, so you should contact a loan office in your area or call the Department of Education for more information on who would qualify. While the requirements will vary, most people will find that they are able to qualify for a maximum of thirty days of grace after their first payment of the loan. After that, they will need to start paying back whatever money they have borrowed.
However, there are some limits as to how long you can use this option with loans that are subsidized. Usually, you would have to wait until you have paid back half of your loans before qualifying for a longer grace period. With unsubsidized loans, you will not qualify for a longer grace period. However, this will still allow you to keep your payments down and make them affordable.
If you have been thinking of consolidating your student loans, you will also want to know if you would qualify for who would qualify for student loan forgiveness programs. Most student loan companies are not going to forgive the interest on subsidized loans. In addition, you would have to be enrolled in a college or a university full time in order to be eligible for this relief. You can check with the Financial Aid office at your school to find out if this would qualify you.
If you have several subsidized loans and you are having trouble making your monthly payments, you may qualify for this type of relief. However, make sure that you consolidate all of your loans into just one. This will make your life much easier and it is a good idea if you do not have to put all of your eggs in one basket when it comes to paying off your debt. Student loan forgiveness does not mean you should do nothing about your loans.