Posted: 6:00 a.m. Thursday, Oct. 24, 2013
By Clark Howard
Struggling to repay federal student loans? The government has a new initiative in place to prevent you from defaulting.
The U.S. Department of Education will be emailing certain borrowers they deem at risk of default to explain more favorable repayment options and keep you current on your loans, according to The New York Times.
The emails will begin going out in November. They’ll explain repayment options like the income-based repayment plan and the Pay As You Earn program. But no need to wait until you get the email; both programs are discussed on my student loan guide.
Another thing you’ll find on my guide is a discussion of student loan forgiveness for federal student loans. Under this plan, certain careers qualify for full loan forgiveness after 10 years of on-time student loan payments. Check it out, this program is not just for teachers anymore!
So help for repyaing federal student loans is here. But if you have private student loans, I’m sorry to report there is no help for you with repayment. You’ve got to throw every extra dollar in your life at those nasty debts to eliminate them once and for all.
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