Over 60% of the population has outstanding student debt. The vast majority of people are repaying this debt via monthly contributions directly from their salary. Whilst this amount is often unnoticed as it is deducted before you are paid, there is no denying the fact that a large proportion of your cash is going back into your loan and its interest.
Unfortunately, most people are required to take out such student loans when entering higher education as university costs are ever increasing. There are very few people that are able to pay such fees up front.
Loan Forgiveness explained
Despite the fact that the nation is swimming in student debt, very few people are aware of loan forgiveness schemes and how they could help improve your financial situation. Whilst such schemes are not available to everyone, a whopping 30% of the population are able to apply and the benefits could be huge.
Such loan forgiveness projects are available to certain professionals. Applicants are required to register for the scheme and submit the relevant documentation. If they are successful, then amazingly the whole of the applicant’s student debt would be repaid on their behalf. This includes reimbursing the applicant for any fees that they have already repaid themselves.
How to find out more about Loan Forgiveness
Since not everyone is eligible to apply you may need to do your research carefully to assess if loan forgiveness can work for you. In general, the schemes are intended to benefit public sector workers such as teachers, firefighters and health care professionals. It seems that the rationale behind this is to help thank such civil servants and support them in careers which are seen to be integral to society.
Since the rules and regulations of loan forgiveness schemes are often complex there are many loan forgiveness websites which strive to provide support to those who wish to apply.
These sites quite often have relevant information to each profession and each loan forgiveness scheme. They are able to highlight exactly what criteria you must meet before you apply and even help you find the correct application forms and supporting documents. If you need more assistance they are happy to discuss your application with you over the phone or in person to ensure you are applying correctly. Not only that, but since each scheme has different rules regarding when you can apply, websites such as these are able to remind you of deadlines you must meet to avoid missing out.
Being realistic about your application
Even though many people are eligible to apply, the number of successful applicants is actually quite low. It seems the loan forgiveness committees only select a handful of people each year to receive the full benefits. Therefore, we advise anyone thinking about applying to be realistic about their chances of being successful. That said, it does no harm in actually applying – it does not cost anything, just may take up a bit of your time. Why not give it a go and keep your fingers crossed!