Some Quick Information on Student Loan Forgiveness and Repayment Programs

In a our time of an economic recession it is imperative that people make sure to keep out of the red, especially college students starting their career with a standard low income. This is why it is so important for students to have some common knowledge on the advantages of student loan forgiveness and repayment programs that are available to students all over the United States. These plans help eliminate that debt that is slowly piling up on many students not having the financial support to rid themselves of this debt. Ironically, most of these programs receive a low number of applicants demonstrating that many college students are oblivious of these opportunities. It is important to take advantage of these opportunities so you don’t need up like the hundreds of students that have debts ranging over $50 thousand dollars. Being said there is a difference between student loan forgiveness and student loan repayment. Student loan forgiveness programs are backed by the Federal government and through these loans students actually have portions of their debt erased from your lender’s books. Federal programs such as the Stafford and Perkins loans are a couple of forgiveness programs that offer this to college students. A student loan repayment program is more general than student forgiveness programs. They are used to eliminate loans from public and private lenders. Under these loans you can gain additional funds to pay off your loan or the payment can be made directly to your lender by your employer. Though it is important to acknowledge that the amount of eliminated under these student forgiveness and repayment loans could be taxable income on the year you receive them. Meaning if you have a thousand dollar loan this might increase your taxable income by the IRS by a comparable amount but, the significant advantages of these loans shouldn’t discourage you from using these programs. To make sure your loan is not subject to taxation you should include provisions on why they should be forgiven. Some provisions are listed on the link stating “The basics of Student Loan Forgiveness and Repayment Programs.” There are tons of these programs that are available gives students plenty of opinions. If you have any questions feel free to comment on the blog and I will try to help you out as best as possible.