Student Loan Forgiveness - A Little Insight

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Student Loan Forgiveness - A Little Insight
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• Right from our childhood, we hear about the
  American Dream, and we spend a lifetime to chase
  this dream! We strive to have quality education
  in a field we feel passionate about to build our
  careers in. We all hope to land a job that can
  bring enough inflow of money to lead a dream
  lifestyle.

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• In that pursuit, most people take single or
  multiple loans to fund education expenses.
  However, for millions of graduates, the harsh
  reality of a struggling economy brings them
  face-to-face with mounting debt and fewer means
  to pay it off.

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• Even more startling is the fact that out of the
  40 million debtors, about 2 percent or roughly 7
  million borrowers have defaulted on their Student
  Loan in India. This may add almost 25 more
  burden in penalties to their debt.

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Loan repayment and forgiveness

• Student loan forgiveness programs are funded by
  the US government. Under this program, borrowers
  may have their entire student loans or a part of
  it forgiven. You need to fulfill some criteria to
  qualify for this. However, this requires a
  20-year period of regular payments. Also, some
  individuals participating in public service may
  seek loan forgiveness sooner. Another important
  point is that the borrowers must not have
  defaulted on the student loans if they are
  seeking those to be forgiven.

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Who can benefit from Student loan forgiveness?

• Certain careers offer student loan forgiveness
  programs as recognition of service to
  individuals. School teachers, members of the
  armed forces, social workers, and government
  employees may qualify for loan forgiveness
  programs.
• There is a student loan forgiveness program for
  teachers in place. To be eligible for this
  program, one must be a full-time teacher for five
  consecutive academic years in certain elementary
  or secondary schools. These schools and
  educational institutes must be catering to
  low-income families. If you are a teacher, and
  you meet these criteria, you may benefit from
  loan forgiveness of up to 17,500 combining your
  direct subsidized and unsubsidized loans.

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How to apply for student loan forgiveness

• Borrowers who are employed as teachers or are
  involved in some sort of public service, such as
  government workers, social workers, soldiers or
  paramedics, may be eligible to seek Teacher Loan
  Forgiveness or Public Service Loan Forgiveness
  plans on meeting some specific criteria. Most
  loan consolidation servicing companies assist
  eligible borrowers with the counseling and
  application process. One may go online and look
  for information on loan forgiveness.
• Seeking the services of a reputed student debt
  relief company can ensure a smooth process for
  loan forgiveness.

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