With the high cost of tertiary education all over the world, more student loan providers are becoming more forgiving when students can’t afford to repay their loans.
It’s no secret that getting access to tertiary education can improve the lives of many people. Tertiary education has been shown to facilitate personal development and to improve standards of living. The unfortunate part is that tertiary education is becoming increasingly inaccessible due to the high costs. Those who do access this education often have to deal with student loans.
How does one qualify for student loan forgiveness?
For a loan payment to be forgiven, circumstances beyond the borrower’s control that prohibit the repayment of the loan must be identified.
Requirements may also vary depending on the type of loan.
Common reasons for student loan forgiveness may include:
- Permanent disability
- Use of identity theft to secure the loan
- Death of the borrower
- Closure of the school during the time of study
How does student loan forgiveness work?
- The idea behind student loan forgiveness is simple- a portion of your student loan debt gets forgiven and you no longer owe that set amount of money.
- Some lenders will let you make interest-only payments or take a temporary interest rate reduction if you’re having a hard time affording your bill.
- Some programs have regulations about how much debt you need to have. It’s important to thoroughly research any opportunity before signing up. Make sure that you know the conditions of the loan forgiveness.
- Some employers have begun offering loan forgiveness as an employee perk. Before you sign up, it’s important that you know what happens if it doesn’t work out. You need to weigh the pros and cons of the programs.
- If you are struggling to pay your student loans, do your research and contact your lender as soon as possible.