How to Get Student Loan Forgiveness.
Many people will have to depend on student loans in order to get through higher education. Even so, you might get an expensive education and still end up broke. Whether you secure employment or not after clearing college you cannot ignore the fact that paying student loans is not an option. The starting salary for many average jobs is really low and paying basic bills might not even be possible let alone adding the burden of student loans. However, you can go for student loan forgiveness if you are struggling to keep up. Even though these may not be the best decision for everyone who has a student loan you should do an analysis and make an application if you think it will be helpful. Having proper information about student loan forgiveness will make all the difference. Running with what you hear on the grapevine is not going to be of help to you. However, student loan forgiveness does not mean you are paying zero dollars. However, you can save thousands of dollars in repayment. This is huge news, especially in the current economy.
You can start by taking advantage of income-based student loan repayment program. The options available are REPAYE, PAYE, ICR, and IBR. You only have to choose one plan among the four and make payments faithful to two decades or up to 25 years and then you can apply for the rest of the amount to be forgiven. For those who cannot qualify for the complex student loan forgiveness programs, this will give you the relief you need. Before you pick a plan, ensure you understand everything about it. IBR requires you to pay 15% of what you are making. For those who settle for ICR, you should be ready to part with 20% of your income. If you want to get this done faster then you should pick PAYE. In just 20 years you will qualify for student loan forgiveness under the PAYE plan. Even so, remember that there are interest subsidies under this plan. For the tax, you will have to pay after the loans are forgiven, you need to start planning early. Once you secure a job you should save 200-1000 dollars on a monthly basis to offset the taxes after the 20 years. With the high debt burden many people find it very difficult to put money in an emergency fund and this means even with discipline in saving paying the taxes after student loan forgiveness can be a problem but IRS can write it off for insolvency. This works sometimes but you need back up.