How to Apply For Student Loan Debt Relief Assistance
To be eligible for the government's student loan debt forgiveness program, your student loan must be funded by the federal government and not in default. What the program permits you to do if you have a student loan payment you cannot afford is, it permits you to reduce your monthly student loan payment to 20% of your disposable income. Apart from this, it extends the time you have to pay back the loan to 20 years. If you complete the 20-year plan, the remaining balance of your student loans are discharged. Here's a good read about student loan forgiveness programs, check it out!
1.) Gather Your Documents
Before you can apply, you will need to locate your student loan documentation to determine what type of student loans you have and find out information like your account number and outstanding balance. You will also need to obtain copies of you last few tax returns.
2.) Determine If You Are Eligible
To see if you qualify for the student loan forgiveness, you will need to use an online calculator for a preliminary determination on your eligibility. You first indicate whether you are married or single, input your adjusted gross income (which would be determined from your last tax return), input the amount you owe on your student loans, the interest rate of your student late, and state where you live.
Example: If I am single and have an adjusted gross income of $40,000 and $20,000 of student loans, I do not qualify for the repayment plan because my monthly student loan payment (approximately $230 per month) would be less than the student loan forgiveness debt payment.
Example: If I am single and have an adjusted gross income of $30,000 and $50,000 of student loans, I do qualify for the repayment plan. My normal monthly student loan payment with $50,000 of student loan debt would be $575.40. Under the forgiveness plan, my payment would be $170.
3.) Contact Your Loan Servicer
If you qualify for the Income-Based Repayment Plan, contact your loan servicer. Your loan servicer should be able to help you walk through the application process. A quick word of caution: if your federal servicer is Navient, make sure you familirize yourself with the Navient class action lawsuit currently under way.
4.) Submit the Application Documentation to Your Loan Servicer
Along with your application that we discussed in step 3, you'll likely also be asked to complete some forms so your loan servicer can obtain your tax returns from the tax authority. However, your loan servicer may require that you directly furnish your tax returns. You will also likely be asked to supply copies of your paystubs and possibly even your bank account statements. Kindly visit this website http://www.wikihow.com/Pay-Off-Student-Loans for more useful reference.