The numbers don’t even seem to make sense. In late 2017, Americans collectively carried $1.36 trillion in outstanding student loan debt, according to the Federal Reserve Bank of New York.
Even worse, 11.2% of that debt is currently delinquent or in default. If you’re paying off student loans, you know full well what the reality behind these statistics feels like. Paying off student loans is more than just a drag. It can put you in long-term financial jeopardy if things don’t turn out like you’d hoped post-graduation.
But, there is a beacon of hope in the darkness. It might be possible for you to have your student loan balance partially or even completely forgiven. These programs aren’t necessarily easy to find or qualify for, and they don’t come without strings attached. But if you can complete a student loan forgiveness program, you just might be able to move on with your life and leave the student loans behind like a bad habit.
Whether you have private or federal student loan debt, there are various programs in place to help struggling borrowers ease their debt burden.
When your student loan debt is forgiven, cancelled or discharged, you are off the hook for that amount. Some loan forgiveness programs actually do wipe away your debt like a fairy debt godmother with a magic wand. Other programs, such as Loan Repayment Assistance Programs (LRAPs) or Loan Repayment Programs (LRPs) will make additional payments toward your student loan for you, thereby reducing your balance over time.