Student loan forgiveness programs are a great way to lower your student debt. Based on the career you are selecting, having knowledge of how the student loan forgiveness program works can make your college decision easier. If you are considering a career in the government, education or medicine, your opportunities are significantly better. One of the problems your need to avoid is not properly planning. Many people hear the term of loan forgiveness and do not investigate the details of the plan. The rules are very specific and do not apply to all student loans. To properly take advantage of loan forgiveness you need to use certain repayment plans. You may also need to consolidate your loans under the direct loan system in most cases.
Federal student loans are the only loans that qualify for loan forgiveness. Some employers do offer an incentive program to help with an employee’s loan repayment. Once you are hired visiting the human resource department is recommended to see which plans are available. An important part of the loan forgiveness process is maintaining good records. The Public Service Loan Forgiveness (PSLF) programs has a form that should be completed each year or at a minimum each time your change jobs. Your tax return information is not enough detail. Typically you only need to keep tax records for 7 years. To qualify for the PSLF program your will need records for 10 years or maybe longer. This video on student loan forgiveness will address:
- Impact of Repayment Method
- Planning requirements
- Importance of Employment
Our professional college financial planning service can help you with the entire college funding process. Please visit College Affordability Services for additional information and help. Our unique cash flow analysis and student loan expertise can help you plan better.