With the U.S. student loan debt creeping up on $1 trillion, it is a shame that more people are not taking advantage of student loan forgiveness programs offered by the Department of Education. The Consumer Finance Protection Bureau is working on a plan to educate those with student loan debt about their repayment options and rights.
The CFPB efforts are focused on the 33 million people working in “public service” jobs. Federal student loan forgiveness programs are aimed at those working in the following fields – armed forces, teachers, emergency service personnel, social workers and other qualified non-profit workers.
Because these jobs are not high salaried positions, the government offers the forgiveness in order to keep them employed in their position. The forgiveness programs work over time which will eventually end up in forgiving a good portion of the worker’s student loan debt troubles. The debtor will have to pay in to their loan for a number of years to qualify for forgiveness.
Many borrowers in the public service field do not know about these forgiveness programs. The education set forth by the CFPB will help reduce the debt for borrowers who remain in their public service jobs. Currently, there are many federal student loan debt relief services that are educating and assisting borrowers to find relief with their loans. Too many of these workers are leaving their jobs to find better paying jobs.
CFPB is in hopes that along with helping current public workers with their debt that spreading information about loan forgiveness programs will entice new students to go to school in public service fields. The forgiveness programs are set up to allow individuals to work through the programs themselves. The relief is a free service from the Department of Education.
Whether you are a new or a student in the past, if you are facing loan debt and your work in a public service position, it is in your best interest to find out if you qualify for the forgiveness program ahead of time. You can call one of these services for a free consultation to see what programs you may qualify for.
If you are skeptical about working with a paid service, you can go to the Department of Education’s website and look up the programs directly. You will want to know what type of federal loan or loans it is that you owe in order to help define your qualification standings. Not all loans will offer forgiveness, but they may be handled in a different manner to provide relief. It is the complications of multiple loans with various savings programs which drives borrowers to use professional services for federal student debt relief.
Even if you are not a public service worker and are looking for loan relief, there are federal programs to help out. There are consolidations to consider as well as the Income Based Repayment program. The IBS is its own form of forgiveness program with set qualification standards.