Loans play an importantly indisputable role towards progress in various aspects of your life. Ideally, the burden of repaying the loans purely rests on you. Under certain unavoidable circumstances, it can prove to be cumbersome to execute the responsibility. Your life will definitely be affected when you find yourself struggling to service a chain of loans with a low income employment or and at the same time you are disabled or suffering from a life threatening disease. Thanks to the loan cancellation programs now in place. Even if you have taken a loan to pay for some line of education that you do not any more, the remaining balance can be cancelled if you request. The common loan cancellation programs are four in number.
The common program of the four is public service forgiveness program. Public servants such as teachers, nurses, fire fighters and military personnel, just to mention a few, can qualify for the benefits of the program. Before your request for cancellation of the loan outstanding, there are special conditions that you must meet. The condition is that, at the time of application, you must have faithfully serviced your loan for at least ten years, as long as you are working in a government department or in a non for profit organizations. One unique feature about the program is that for the loan to qualify under the same, it must be a state direct type, although there are options of tying all other student loans into one for them to qualify as well.
Income driven loan cancellation is the other special program. Under this program the government gives options which enables you repay a portion of your monthly repayment, towards your loan outstanding. The options include income based repayment, income contingent repayment, pay as you earn and revised pay as your earn. There are conditions which you must meet for you to qualify for either of the four types of income driven loan cancellation programs. For your request for cancellation of your loans to granted you must have serviced your loans for atleast twenty years and you are remaining with a considerably large balance.
Thirdly is teacher loan forgiveness. The first condition that you must meet for teacher loan forgiveness program is a proof that you have for five uninterrupted years. A certain sum amount of money will be taken off from your loan burden. It is however for those teachers who are working in low income public elementary and secondary schools and have got direct loans and Stafford loans.
Perkins loan cancellation is the fourth one. State employees who have worked for five years are eligible. One hundred percent of their outstanding loan is cancelled.
You will save a lot of money if you apply for any the four types of loan cancellation programs.