The student loan forgiveness program is one where the student can avail of this loan and without having for this to be paid back, if the student is qualified. For the teacher loan forgiveness program, the borrower should teach for five consecutive years and should be on full time basis. The place of teaching should be in a low income community or for teaching services given to low income families. The potential dangers encountered will be not fulfilling the entire five years of consecutive teaching, for whatever reasons the student borrower has. Federal student loans availed of by student borrowers abd pursuing teachinh jobs can be good for them, according to Bruce Mesnekoff, but there are also potential dangers possibly encountered, and the borrower should make efforts for this to not happen.
Public student loan forgiveness program can also be availed of by student borrowers who meet the specific qualifications. The federal student loans acquired are benefiting most the college students because they can finish their college education and have a career after graduation, and this is the most the get as benefit, per the student loan expert Bruce Mesnekoff. They can also avail of the public student loan forgiveness if they have made 120 loan payments or consecutive payments without fail for 10 years and also working in a qualified public service organization. There is also the danger potentially encountered, that of being disqualified like when the student loan goes on default. After many years of loan payments without fail and financial trouble comes along, there is the possibility of default and this can disqualify the borrower from availing of this loan forgiveness program.
For sure, the federal student loans are giving more benefits to college student borrowers and they can also have several repayment options that can be availed of, per Bruce Mesnekoff, and this is giving them more advantages. Loan forgiveness programs can also be availed of, which they cannot avail if they pursue the private student loans acquired from the banks. Although they may treat this with lesser priority compared with the federal student loans, but may also avail of when college funds are not enough, they will not have this benefit of loan forgiveness with the private student loans.
Student borrowers who are on the income based repayment scheme and making their repayments diligently may also get qualified for the loan forgiveness program, if they negotiate and get qualified. However, there can also be some danger associated with this, like the balance of the loan not forgiven is treated as income, thus the borrower should pay taxes for this. However, this may be the lesser of the problem faced because the bigger student loan amount is forgiven. Thus, the federal student loans should be treated more preferentially by student borrowers because of several benefits they get, per Bruce Mesnekoff, the student loan expert.
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Student Loan Help Center General Manager Bruce Mesnekoff joins us to Discuss the Student Loan Situation in America
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