Loans play an importantly indisputable role towards progress in various aspects of your life. 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. 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. You will can get your loan cancelled by ant of the four loan forgiveness programs upon application.
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. Your outstanding loan balances will be forgiven, based on certain conditions though. The condition is that, at the time of application, you must have faithfully serviced your loan for at least ten years, as long as you are working in a government department or in a non for profit organizations. One unique feature about the program is that for the loan to qualify under the same, it must be a state direct type, although there are options of tying all other student loans into one for them to qualify as well.
Income driven loan cancellation is the other special program. The income driven loan cancellation has interesting feature whereby you as the borrower has an opportunity to pay a lesser amount of your regular monthly repayment. The options include income based repayment, income contingent repayment, pay as you earn and revised pay as your earn. The four plans too are not without a condition. For your request for cancellation of your loans to granted you must have serviced your loans for atleast twenty years and you are remaining with a considerably large balance.
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. A certain sum amount of money will be taken off from your loan burden. Moreover, as long as the applicant is working in a low income primary of secondary school, there are high chances of qualifying.
As alternative of loan cancellation program, you can apply for Perkins loan cancellation program. State employees who have worked for five years are eligible. One hundred percent of their outstanding loan is cancelled.
The four types of loan cancellation programs can offer you a huge amount of relief from your loan burden.