Know Who Can Benefit From Student Loan Forgiveness

Do you know student loan debt is costing Americans nearly a trillion dollars? This means there is a whole lot of students who are craving for that particular moment when they will be debt-free; in case you are one of them, you should read this. The good news is, Student Loan Forgiveness Act of 2012, can help offer some support for those who are carrying around huge student loans on their backs. The Navient loan forgiveness idea sounds great but what does it mean to you?

First, it means reduced payments for students experiencing economic hardship. Basically, the act governing the student forgiveness advocates for those who are struggling in today's economy. One can have his or her federal student loan payment reduced to 10% of the monthly income as well as provide forgiveness after ten years of payment; this is what is referred as 10/10 plan. In case you are drowning in student loan debt, and you are somewhere near the poverty line, then this bill will be ideal for you.

This act also enables prospective students to access new federal loans at reduced interest rates. The bill sets the rate cap on federal loans to 3.4% which is half of the current rate of 6.8. This is a great scheme for those who want to further their education but have no way of affording it.

It also cuts on the payments public service employees need to make; as a public servant, you will have your payments cut in half, ideally from 120 to 60 that you need to make before your debt is forgiven. Hence, in case you are a teacher, nurse or a military member, this is really right for you.

The bill also converts your private loans to federal loans. It allows the borrowers to consolidate their private loans into a federal loan.

Here are answers and questions of the most asked questions about student loan forgiveness processing .
Does this program benefit anyone in the public service? The answer is no. The program is designed to reward people who dedicate their professional lives to the civil service and by s doing are ready to accept a small salary. Remember the program offers forgiveness after 120 months and the term of student loan is 120 months. This means you have to qualify for Income Based Repayment plans to benefit from it. Finally, your student loans should be in good standing and not in default.