The Basics of Student Loan Forgiveness

Many of you have heard about student loan forgiveness but have not taken the time to fully understand it. Here is your opportunity to learn more and to begin with, what exactly is student loan forgiveness. This started in 2007, when the College Cost Reduction and Access Act got passed in October. With this, the outstanding balance of a student loan may be forgiven provided that certain conditions are satisfied on top of the required 120 on-time payments made.

Not all student loans qualify for forgiveness. The loans that belong to the Direct Loan Program are the only ones eligible. For someone whose loan is not under the direct loan program he or she will need to combine his or her existing loans into that program to make it eligible. Moreover it must be made clear that the 120 on time payments should be made after the CCRA was passed. This means even if you have already paid 120 or more payments on your loan, only the next 120 payments made after CCRA was passed in October 2007 will be counted. This also goes to say that 2017 is the earliest that any of those loans would qualify for forgiveness.

Moreover, other conditions state that you need to be working in public service for the duration of the 120 months while payments are made and this also include the time you apply for loan forgiveness. It should also be noted that not all public service professionals qualify. Only those who are low income with comparatively high debt can apply for loan forgiveness at www.forgivenessprocessing.com . Also, the student loan needs to be in good stand and therefore it should not be in a status of default.

Typically, those who are working as firemen, policemen, public educators and other similar jobs as well as those who are in public health, public library, public child care and many more may qualify for student loan forgiveness. Having said that, now, you should already have a good idea whether or not are eligible for student loan forgiveness or what things you need to qualify for the program. But that is not all there is to know. This is just a bird's eye view of the program and your next step is knowing how to apply. Check out http://en.wikipedia.org/wiki/Payday_loan to know more about loans.

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