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. Even worse is when you get yourself into the web servicing multiples of loans, and you are not in employment or you have been hit with a disability and you your ability to work and earn in put in jeopardy. Your savior from the financial burden is 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. The nature of employees who qualify to apply for this program include military officers, nurses, teachers and fire fighters and many more. Before your request for cancellation of the loan outstanding, there are special conditions that you must meet. Whether you are working in the government or in nonprofit organization, you will save much out of the program as long as you have made repayments for at least ten years. However, only federal direct loans are the ones qualified for the program and you have an opportunity to consolidate every other student loans so that they are repayable under the program.
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. 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. There are conditions which you must meet for you to qualify for either of the four types of income driven loan cancellation programs. 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.
A special type of loan cancellation program intended for teachers only is the teacher loan cancellation program. Teachers who have worked for five years following each other uninterrupted will have a reason to smile. With teachers loan forgiveness program, a lump sum amount of money is deducted from the total sum of the loan outstanding. Moreover, as long as the applicant is working in a low income primary of secondary school, there are high chances of qualifying.
Perkins loan cancellation is the fourth one. If you are a government staff and you have served for not less than five years, you stand to qualify for the program. 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.