Are you a student who have a loan which you used to settle post-secondary education tuition fees and other payables? Then, you should be interested to learn more about student loan forgiveness. This is obviously a program that is intended to deliver financial benefits to student borrowers like you. Since you have taken a student loan and still have a remaining balance or still have an unpaid portion of it, then it is a valuable thing for you to really have an understanding about student loan forgiveness program. You may be illegible for it or you may be able to avail of it.
Important Notes About Student Loan Forgiveness
A. How does student loan forgiveness do?
From the basic point of view, student loan forgiveness aims to provide a relief or forgiveness to the borrower on his or her loan. This applies to students who have applied for a student loan in payment of his or her post-secondary educational dues and needs. The program intends to eliminate a portion and sometimes all of the remaining balance of the loan. If you will be able to avail of the program and be approved for the same, then that means you will no longer be accountable to settle or pay a part or all of the remaining balance of your loan. However, it is important to remember that not all of student loans are illegible for loan forgiveness. There are terms and specifics that must be adhered to.
B. Do all student loans can be granted with loan relief?
The answer to this question is no. Not all loans that are applied for and granted to students can receive loan forgiveness. This is true even if the proceeds of the said student loan were utilized by the student to pay their tuition feeds and other school-related fees. The key point here is that there is a distinction placed between private student loans and federal student loans. To be more specific in this matter, only federal student loans may be granted with student loan forgiveness by virtue of the said program. This means further that student loans which are gotten from other lenders like private lenders are not qualified for the student loan relief or forgiveness.
C. How to join of the student loan forgiveness program?
The basic illegibility is that the student loan must be a federal student loan. This means to say that the student loan is granted by the federal government. In addition to that, the student borrower must also be working in a public service. This is how you can be able to avail of the student loan forgiveness program and the benefits that come with it. If you are not working with a public service, then you may not be granted with the student loan forgiveness program. In some cases, students who experienced fraudulent acts from their lender may also apply for a loan relief or forgiveness. This situation falls under the borrower defense category.