Low Income? You Could Qualify For $0 Low Payments
The US Department of Education has a program that allows you to get an income-based repayment plan. This repayment plan will take your IRS information in order to determine a reasonable plan for you. It is possible that you will qualify for $0 low payments. If you make your payments on time every month for a certain number of years, then you could get the remaining balance erased.
There are several types of repayment loans that you can qualify for. One is not necessarily better than the other. You just have to find the one that fits your needs.
Pay As You Earn
If you choose the pay as you earn program, then the maximum that you will pay is 10 percent of your discretionary income. It will not be more than the standard repayment plan. Discretionary income is calculated using 150 percent of the federal poverty line and your annual income.
Your payment will be re-calculated every year. If your income and family sizes changes, then you will have to pay more or less. Your spouse's income will be taken into consideration if you are married. Your debt will be erased after you have payments on time for 20 years.
Revised Pay As You Earn Repayment Program
This payment is similar to the other pay as you earn program. However, your payments may be more than the standard repayment plan. The payments will also be calculated using the same method as the pay as you earn program. There will be different terms. Your undergraduate debt will be erased after 20 years. If you went to graduate school, then your student loan debt will be erased after 25 years.
Income-Contingent Repayment Plan
This plan is different. The payments are calculated using the 100 percent poverty guideline and annual income. The payments will be less than 20 percent of your discretionary income. Your balance will be erased after 25 years.
How Can I Apply?
It is simple for you to apply for one of these programs. All you have to do is log into the Studentloans.gov. You can apply for the program that best fits your needs.
How You Can Qualify for Student Loan Forgiveness In Just 10 Years
If you work for a non-profit or government organization, then you may be able to get Public Student Loan Forgiveness. You will get student loan forgiveness after 10 years. In order to qualify for this program, you will have to work at least 30 hours per week. You can work for a state, federal or local government agency. You can also work for a non-profit organization. Additionally, if you volunteer with the Americorp or Peace Corp, then you can qualify for student loan forgiveness.
Options if You're Not Qualified for Student Loan Forgiveness
You can always get the standard repayment option. If you owe $7,500 or less, then you are expected to pay the loan back within 10 years. You can take up to 30 years to pay your loan off if you owe $60,000.
You also have the option of getting a graduated repayment option. This is a great option for people who know that their income will increase over time. Your payments will start increasing over time. It will take you 10 years to pay off your loan. If you consolidate your loans, then you can take up to 30 years to pay off your loan.
Additionally, you can get an extended repayment plan. You can take 25 years to pay off your loan, but your balance must exceed $30,000.