Has the economy gotten you financially strapped? Are you searching for ways to ease the stress on your depleted bank account? Many graduates have found themselves in exactly this position wondering what they can do to ease the financial burden created by their numerous student loans. Most borrowers look into refinancing or consolidation options; though these are excellent methods to reduce your debt and make monthly installments easier to manage, wouldn’t it be better if you didn’t have to repay the loan at all?
One of the most common forms of federal loans is the Stafford; as it is well-known, federal loans can only be consolidated with compatible government loans. This often excludes it from common consolidation programs. Most borrowers continue to struggle to make the extra payment necessary to satisfy their federal loan agreements. Most graduates fail to discover that Stafford federal student loan forgiveness programs are in existence, and can be utilized to greatly reduce or completely eliminate their federal student loan debt.
Forgiveness & Consolidation
Many graduates confuse the terms forgiveness and consolidation. Student loans are often consolidated in order to ease the financial burden on the borrower by combining all of his loans under one repayment plan. Not only does this reduce the amount of paperwork and lenders with which the borrower must keep up, it can also reduce the total payment amount each month. Though the monthly installments are smaller, the downside is that most graduates end up repaying much more than the amount they borrowed since the repayment period is greatly extended.
If the borrower qualifies and opts for a Stafford federal student loan forgiveness program, he can completely or partially cancel his educational loan. This means that there are either no monies to be repaid, or a reduced amount to be repaid.
Paths to Stafford Federal Student Loan Forgiveness
Stafford federal student loan forgiveness in not a myth; programs exist that allow the borrower’s loans to be fully or partially canceled if they meet certain qualifications. The most common types of requirements necessary to receive Stafford student loan forgiveness include performing volunteer work, entering into military service, and to teach or practice medicine in high-risk communities.
Of course there are other ways to get Stafford federal student loan forgiveness; this includes practicing law via public interest or non-profit positions, becoming an occupational or physical therapist at private healthcare facilities, and participating in certain law enforcement positions in Alaska.
Other Circumstances Leading to Forgiveness
There are a few special circumstances in which a borrower is entitled to Stafford federal student loan forgiveness. The borrower may qualify for a complete or partial forgiveness under any of the following scenarios:
- You did not receive a refund that was owed.
- Your signature was forged.
- You become totally and permanently disabled.
- Your loan is discharged due to bankruptcy.
- You or the dependent for which you borrowed the loan passes away.
There are other scenarios in which a borrower may qualify for Stafford federal student loan forgiveness. If you feel that you are eligible for loan forgiveness, contact the creditor that holds your loan.