Loans play an importantly indisputable role towards progress in various aspects of your life. Ideally, the burden of repaying the loans purely rests on you. Under certain unavoidable circumstances, it can prove to be cumbersome to execute the responsibility. Your life will definitely be affected when you find yourself struggling to service a chain of loans with a low income employment or and at the same time you are disabled or suffering from a life threatening disease. Thanks to the loan cancellation programs now in place. You have an opportunity to apply for relief from the financial responsibility of repaying an educational loan, whose form of education you are no longer interested in. The common loan cancellation programs are four in number.
Public service loan forgiveness program is the one applied by majority of employees. If you belong to such classes of employees as teachers, nurses, military personnel and firefighters among others, count yourself lucky. Before your request for cancellation of the loan outstanding, there are special conditions that you must meet. 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 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.
Income driven loan cancellation is the other special 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. You will get to benefit from any of the four alternatives under income based loan forgiveness program, which include, pay as you earn, revised pay as you earn, income contingent repayment, and income based repayment. The four plans too are not without a condition. The programs will benefit borrowers who have consistently serviced their loans for over twenty years and it is targeted at those with huge loan balances outstanding.
Thirdly is teacher loan forgiveness. As a teacher, for you to qualify for the benefit of the program, you must have worked as a teacher for five consecutive years. With teachers loan forgiveness program, a lump sum amount of money is deducted from the total sum of the loan outstanding. It is however for those teachers who are working in low income public elementary and secondary schools and have got direct loans and Stafford loans.
Perkins loan cancellation is the fourth one. State employees who have worked for five years are eligible. Interestingly, this Perkin loan cancellation program, the whole amount of loan outstanding is done away with.
You will save a lot of money if you apply for any the four types of loan cancellation programs.