Applying for Loan Forgiveness

Life is a constant learning process and mistakes are bound to happen. One of the common mistakes made by students is that they tend to apply for a few student loans here and there but once they graduate they figure that the job market isn’t what they expected it to be. Thus, they are burdened with the task of having to repay all the loans they had applied for. While some struggle with this task, there are people who fail to do the same too. There are plenty of ways to go about approaching this problem for those who fail to repay their loans. Some examples of these solutions are: applying for deferment or delaying of the payments minus the interest, loan consolidation, switching the repayment plan, loan forgiveness and so on.

For those who cannot shell out any money at all, opting for the forgiveness solution is definitely a wise move. When you apply for forgiveness, you are basically promising to work or volunteer under predetermined and extremely precise terms in order to have all your loans ‘forgiven’ or excused. Applying for forgiveness is a decision that should be taken with due consideration and the actual process should be conducted carefully too! It is always a good idea to educate yourself well about the forgiveness programs so that you know what you’re signing up for in case you choose to adopt this solution.

When applying for forgiveness the first thing that you need to do is to keep an accurate and detailed record of your payment history because this is required by a majority of the forgiveness plans. If you haven’t made any payment in the past six months (roughly) then you would not be eligible to apply for such a solution. Next, after you are done with this initial preparation, you can start shopping around in order to select the ultimate forgiveness program for yourself. Now, there are many options to choose from here, such as Americorps, Peace Corps, Teaching, VISTA, Military Service, Equal Justice Works, National Health Service Corps and so on.

Loan forgiveness is ideally a solution that helps you get out of your loan troubles, therefore the last thing that you would want is for this to add to your burden or problems! In order to ensure that this is the right solution for you, it is crucial for you to read the fine print otherwise it simply defeats the purpose of applying for this kind of solution in the first place! When shopping around and browsing for forgiveness options, make sure that it is not taxable. You can approach a financial adviser or the taxation department of your location to answer this question.

While some companies may be of great help, sometimes they can meet with unfortunate circumstances and run out of money too! Therefore, it is necessary to have a backup plan ready at hand. In case you have a lot of confusion about these programs then you can opt for the guidance and legal help of an attorney. This type of professional would act as your friend, philosopher and guide and confidante too because you can disclose everything to them! After listening to everything, the attorney would suggest the right solution for you and help you obtain the same.

Frequently Asked Questions