For many college students, paying off their loans can be overwhelming. Fortunately, the government has several programs in place that offers student loan debt relief. Some of the newest programs include President Obama's Government Grants as well as the Income Based Repayment program.
Government grants are designed to provide assistance to individuals with an extremely high debt. While it may not be enough to completely settle the debts of an individual, it can pay 30 to 85 percent of the total debts. If you are more than 18 years old and can show proof that you are really in huge debt, you can avail of a government grant.
A student loan may be considered as an overwhelming debt. When applying, you need to provide all the documentation, such as your income, expenses, and other loans. The government agency will then determine whether the documents match all the information you indicated on the application. If there is a match, it is likely that you will qualify for loan debt relief.
The Income-Based Repayment Program began on July 1, 2009. Under the new program, student loans can be reduced to less than 15% of their overall income. There is a chance the student would pay nothing on their loan. If their annual income is less than $10,400 which is 1 ½ times the poverty level for households, it is likely that the entire loan can be settled.
If you have a high income, it is also possible to get loan debt relief under the IBR and can be reduced to 15% of the difference between yearly income against the allowable minimum income poverty.
Another student loan debt relief program is debt forgiveness. Under this program, students who will pay 10 years of their federal student loan may qualify for debt forgiveness. For low income earning individuals, regularly settling the debt for 25 years can qualify for debt forgiveness.
Federal student loan debt relief programs can help reduce overwhelming debts of college graduates. There is a lot of competition among the applicants so you need to apply immediately for student loan debt relief while the funds are still accessible.
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