A Financial Insight into the Benefits of Loan Forgiveness Programs

financial insightAre you crippled by student loan debt?

Do you worry that you’ll never be able to pay off what you owe?

You’re not alone.

In the US, there are more than 44 million borrowers with $1.3 trillion in debt, and many struggle to pay it off. Luckily, there are solutions, and forgiveness programs are one of the best.

By working in a certain industry for a specified period of time, you’ll have all or part of your loan ‘forgiven’, meaning there’s much less to pay.

Want to get some detailed financial insight into managing your debt? Keep reading.

You’ll Benefit from a Stable Career

When you enter a student loan forgiveness program, you’re usually obliged to work in a certain industry for a set amount of time.

For example, via the nursing education loan repayment program, you’ll have up to 60% of your student loan written off if you work full-time in a non-profit facility for two years.

Not only will you be writing off a huge chunk of debt, you’ll also be gaining valuable experience in your chosen career path, setting you up to have a stable career for the rest of your life.

If you’re not sure that you want to work in the area you studied in, student loan forgiveness programs can encourage you to at least give it a go.

A Lower Salary Is Balanced by Help Paying Your Loan

The jobs required by student loan forgiveness programs may have lower wages than the industry standard, which can be off-putting to graduates.

However, a little financial insight shows that the lower wage is often easily made up for by the fact that you no longer have as much student debt to pay off.

On top of that, most forgiveness programs don’t oblige you to stay in the same role for more than a few years.

So, it’s worth taking a job that allows you to benefit from a student loan forgiveness program, then moving on to a higher-paid job in the future, having gained experience and lost debt.

Forgiveness Programs Are Available in Many Different Industries

Forgiveness programs aren’t just for doctors or nurses – they’re available in many different industries.

For example, the loan forgiveness program for teachers rewards teachers who commit to working at a school in need for at least five years, with the biggest benefits to science and maths teachers.

The public service loan forgiveness program is available to students working in a wide range of public sector jobs, although it does require a 10-year commitment.

Loan forgiveness is also available via various volunteer programs, which are always worth looking into.

Click to learn more about the different student loan forgiveness programs available to you.

Financial Insight into Student Loan Forgiveness Programs

So, now that you’ve got some financial insight, you can see that loan forgiveness programs make a lot of sense.

By working a few years in a job that’s less than ideal, or doesn’t pay as much as you want, you’ll write off a massive chunk of your student loan. Later down the line, you’ll be free to take any job you choose without the burden of debt on your back.

Looking for more financial advice? Check out the money section of our blog.