Secure Information on Federal Student Loan Forgiveness: A Quick Summary by Bruce Mesnekoff!3/5/2016 A Quick Summary by Bruce Mesnekof A recent article by a leading daily has revealed that nearly 2/3rd students that are graduating from the American universities are crippled with certain level of federal debt. Another screaming headline viewed in a CNBC article disclosed that approximately 24% millennials are expected to receive forgiveness on their outstanding debt loan balances.
The dizzying Federal student loan measures a great percentage of the overall national debt, which in turn is leading to several consequences, including:
Total and Permanent Disability or TPD Discharge: In this situation, a student is discharged from the repayment of following loans on the basis of their permanent and total disability:
Bankruptcy: Under Chapter13 or Chapter7, if an individual has filed for bankruptcy then the obligation of loan repayment will be discharged. This will be based on the following decisive factors:
Teacher Loan Forgiveness Program: If the borrower is a new applicant and is serving as a low income full-time teacher for five successive years, the individual would be discharged to repay up to $17,500 loan amount. Loan Forgiveness for Public Service Jobs: People serving public services and have successfully paid 120 instalments on the Direct Loans accrued are exempted from repaying the balance amount under specific repayment plans. Perkins Loan Discharge & Cancellation: This is applicable for individuals who are engaged in specific type of business or have performed certain kinds of public service. Under this program, a small percentage of the loan gets cancelled in each year of the service performed. Services that are considered in the loan cancellation are:
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