Not every person makes a six-figure salary after graduating from college. Many borrowers are drowning in student loan debt. A majority of California borrowers believe that their circumstances are hopeless, but that is a misconception, and there are pathways to debt relief.
Believe it or not, a borrower may be eligible for student loan forgiveness. The program is designed for those who are working in a public service environment. This makes debts easier to conquer, especially for those who do not earn a high income. One company that allows these types of opportunities is AmeriCorps, which may enable borrowers to reduce or even cancel their loan debts.
Even if the loans are not completely forgiven, there are still other opportunities available to borrowers, such as Income-Based Repayment. This program allows borrowers to lower their payments down to 15 percent of their income. In addition, a program called “Pay as You Earn,” allows borrowers to lower their payments to only 10 percent of their income, and the debt may be forgiven after 20 years.
Since the student loan forgiveness programs are limited to those who work in the public sector, not everyone will qualify. However, many borrowers can still qualify for some income-based payment programs. In some instances, such as job loss or a medical condition, California borrowers have not been able to keep up with their monthly payments, not even with income-based programs. This causes even more of a financial dilemma since the borrower is likely to default on their student loans. Exploring bankruptcy options may give borrowers the financial debt relief they need so that they can focus on paying their student loans.
Source: webpronews.com, Student Loans – Students Up To Their Eyeballs In Debt Can Find Relief, Tina Volpe, Dec. 31, 2013