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Lowering Your Student Debt Burden

From an early age we are taught in schools that we need to have a good education if we are going to be able to get a good job as an adult. This is the reason that so many people choose to put themselves in a huge amount of debt to be able to pay for their college degree. When you have a huge debt burden, it can be the source of a great deal of stress. However; with the new student loan consolidation and forgiveness program you are going to have a way to get out of the huge amount of debt you are facing.

 

There are several repayment plans that are offered through the federal student loan forgiveness program. First you are going to have all of your loans consolidated into a single loan through the government. The most common payment plan is the standard repayment, where you pay a fixed amount each month for the life of the loan. There is also a graduated repayment plan where the amount you pay goes up every two years until the loan has been paid off.

 

Part of the student loan consolidation and forgiveness program is finding a way to lower the payment for people that need it the most. There is the income contingent repayment plan where the amount you pay each month is based on your income, family size, loan amount, and the interest rate you are being charged. There is also the income based repayment plan where you pay based only on income and family size. Both of these have the potential to lower the amount a borrower pays to zero dollars a month. If you want to learn more about student loans, you can visit https://en.wikipedia.org/wiki/Public_Service_Loan_Forgiveness_(PSLF)#Examples_of_jobs_qualified_for_the_PSLF_program.

 

If you have a huge amount of student loan debt, you may want to consider the pay as you earn payment plan. With this plan you pay ten percent of your discretionary income each month towards your student loan debt. After doing so for twenty years the remainder of your balance and interest will be completely waved by the government.

 

The obama forgiveness student loan program has made it easier for people to pay towards their student loan debt. When you opt into this program, you are going to be able to lower your monthly payment. This is a great way to make it so you are no longer burdened by the debt it took to get your education.

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