Graduation from a college or a university is a terrific accomplishment. However, the last thing anyone wants to worry about after all those years of hard work and late nights of studying is thousands of dollars in student debt or government debt relief. Unfortunately, that’s the reality for millions of graduates around the country.
Currently, the national student debt sits at a staggering $1.73 trillion. If you are one of the many US citizens living under a dark cloud of student debt, it might be time to start thinking about government debt relief and student loans. If you don’t know where to turn, US government debt relief programs are an excellent place to start.
What Are The Student Loan Debt Forgiveness?
The US Department of Education offers a federal student loan forgiveness program that offers debt relief to some public service workers who have made payments for a certain number of years.
The government debt relief and forgiveness programs are for workers such as teachers, law enforcement, medics, and nurses. However, there are other types of student loan forgiveness, including the scenario where you find yourself with a disability and are unable to work in your chosen field.
Even if you think you know everything about your student loan situation, it never hurts to double-check. You should always do your research to find out whether you qualify for any kind of student loan forgiveness program before moving on to another option.
When Doesn’t You Qualify Consumer Debt?
While we’re on the subject of government debt relief, it’s important to note there are no government programs for dealing with most types of consumer debt, such as credit cards, personal loans, and the like.
Consumer debt is not always available for everyone. Many times you are applying for the debt but can not get it. In these types of cases, you will get two options to settle the issue.
If you need help along those lines, you can turn to the private sector for options such as debt consolidation and debt settlement.
1. Get The Debt Consolidation
In a government debt relief consolidation program, you can have loans (including certain forms of student debt) combined into a single loan with fixed interest. From that point on, you’ll pay a single monthly fee that will go towards all your loans at once.
This is a great option if you have a hard time keeping track of all your payments or are finding yourself buried under interest rates. However, it’s important to find a program that is realistic for your circumstances.
You could end up in an even worse position than you started if you are unable to make your new payments. The pacers are the most critical factors. Gather the pacers, which you can submit as proof for your words and the circumstances.
2. Settle The Debt
Debt settlement involves working with creditors to negotiate a one-time payment in full of satisfying a debt in exchange for interest rate and fee concessions — and sometimes even a portion of the principal amount borrowed.
This can be a good option if you are close to or have already defaulted on your government debt relief loans, as most creditors won’t agree to settle if you have been consistent with your payments. However, you don’t want to purposefully avoid paying your loan off in the hopes of reaching a settlement.
Doing so will detract from your credit score, which can affect your ability to apply for other loans or be approved for mortgages in the future.
Conclusion:
People often feel hopeless when in debt because they don’t know they have options. The first step is learning everything you can about your student loans and the services available to you. Knowledge is power, and in this case, it might also be a relief. Government debt relief programs make it easier for you to move on with your life and pursue your dreams so that hopefully, you never have to think about such matters again.
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