Do you feel overwhelmed or even completely lost with your student loans and eligibility for forgiveness? You are not alone. Apparently, it is a common thing not to know much about student loan forgiveness. This includes the type of loan you have, whether federal, private or a mix of both. This information is not handed out in expedite view. Apparently, a former student will have to take on a few steps to find out about this information. First off, find out if your loan is a federal type of loan. The National Student Loan Data System is a free database that will enable you to figure out any federal student loans you may have. If luck is on your side, you will have a federal type of loan and a higher chance of getting your loan forgiven. Otherwise, you may want to know that a majority of student loan forgiveness applies to federal-type loans. If you want to know about your private student loans, it may cost you to acquire this information unless you get a free credit report from Credit.com.

On another note, income and the sector wherein you work may play a large role in your student loans being forgiven. For instance, those working for the government may have a better chance than those working for private companies. A private sector worker may have a longer and more difficult process to forgiveness. Experts reveal that the best option is to go through an income-driven repayment plan prior to applying for eligibility for the forgiveness of the balance of the remaining debt. If you wish to apply for an income-driven repayment plan, you may complete your application with the Federal Student Aid office. It is also recommended that a total of two years of payments should be made once in the plan. Then after two years, you may apply for forgiveness on the remaining balance, which is still a large amount.

For those working in the public sector, federal, state, or local may benefit from Public Service Loan Forgiveness. This is designed for public workers and those who work for 501© (3) non-profit organizations. Take note that if eligible, this plan can help you in the event that you lose your job in the non-profit organization and have to look for another public work. The payments made are still credited for as long as you make 120 payments, regardless of connectivity. On that note, there are certain conditions to become eligible for Public Service Loan forgiveness and this involves working full-time for nonprofit or government. It is also important that you don’t have any private student loans, meaning all of your loans are only Federal Direct Loans. However, older FFEL loans and Perkins loans obtained through your former school may exempt you from being qualified.

As for those with private student loans, don’t give up hope on getting your loans forgiven. If you don’t want to get in trouble with the IRS, you may need help from a few individuals. A Credit advisor such as Credit Advisors Council is a great place to start. A financial analyst may be able to help you figure out how much you need to pay so you don’t get in trouble. Experts also recommend reaching out to loan servicers to help you figure out a plan to get and stay on track. Finally, don’t forget that while a lawyer may not help you negotiate with the federal government, they may help you understand the process.

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