‘Debt Forgiveness’ Category

Student Loan Debt Forgiveness

With tuition costs continuing to increase, the volume and dollar amount of student loans have also risen.  Many students find themselves upon graduat...

 

With tuition costs continuing to increase, the volume and dollar amount of student loans have also risen.  Many students find themselves upon graduation grappling with payments on significant debt balances.  As the economy continues to slow, making payments on this debt become a challenge.

Congress has tried to alleviate some of these issues through various measures.  First, some of the repayment periods have been extended.  Second, tax deductions have been created for students making interest payments.  Third, certain cancellation of debt programs have been created to alleviate mounting debt.

The debt forgiveness programs initiated by Congress fall into several categories.  Hardship rules have been created that provide cancellation of debt in certain extreme cases.  For example, the borrowers disability or even death.  There are also cancellation of debt and extended repayment programs that are available to individuals who are employed by specific employers.  This includes, for example, certain school districts with special needs or low income students, the U.S. military and the Peace Corp.

An important program that has been created is the discharge of outstanding student loan balances upon full time employment for a period of 10 years in a public service job.  Also, the government offers loan repayment of an amount up to $35,000 a year for service in the National Health Services Corps.

There are more and more programs available to the graduating student that is concerned about repayment of student loan debt.  With the recent expansion of many of these programs, more students are able to qualify and reduce their debt balances.  But before you go ahead and sign up for one of these programs make sure that you talk to a CPA or other tax professional to ensure that you qualify and to determine whether there are any unfavorable tax consequences.

For a FREE debt settlement review call us today at 1-877-536-9421.

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