There is no doubt that you can develop in so many areas of your life with the aid of loans. 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. 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. There are now loan forgiveness programs which are provided by the government, which can relieve you from the financial struggle 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.
The common program of the four is public service forgiveness program. If you belong to such classes of employees as teachers, nurses, military personnel and firefighters among others, count yourself lucky. Your outstanding loan balances will be forgiven, based on certain conditions though. 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 second one is income driven loan forgiveness program. Under this program the government gives options which enables you repay a portion of your monthly repayment, towards your loan outstanding. 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. Teacher who qualify for the program are those that have worked as teachers for five years following one another. 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. 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.
The four types of loan cancellation programs can offer you a huge amount of relief from your loan burden.