What If Your Federal Student Loans Were No More?
The past few years have been a bit of a whirlwind for post-secondary education. There have been some very important changes on a variety of different fronts. Professional degrees are becoming a requirement rather than a bonus. Tuition is skyrocketing across fields and types of schools. And to top it all off, the poor economy has forced people back into the ivory tower of education in order to stave off the negative effects that the job market has endured. This smorgasbord of different issues has led to a drastic rise in the level of indebtedness among graduates; a group that you are likely to be a part of. If you’ve always wished you could refinance student loans, consider it granted.
How To Refinance Student Loans
It was the federal government a few years ago that authorized individuals to have their federal student loans whisked away. In addition to the backloaded relief, there are some other important qualities that should not be overlooked by anyone looking to find relief from their student loan debt.
Imagine being able to keep a greater percentage of your after-tax income rather than giving it up to the tax man. Well, that idea is now a reality. As it stands now, you only have to contribute up to 10% of your after-tax dollars to pay off your student loans. This is important because it allows indebted grads to be able to live full and reasonable lives even before they reach the point at which they can have their loans wiped.
There are a few different groups that will be affected in different ways as per the specifications listed in the new law. The lucky winners of the bunch are those individuals teaching in low income areas. They will find themselves debt free in only 5 years, should they continue their current path.
All of the slightly less fortunate are still in a great position to benefit from this system. For example, public interest workers stand to have their federal student loans taken care of in only 10 years, while their private sector counterparts are looking at a 20 year wait.
Preparing To Refinance Student Loans
There can be a lot of legalese within government legislation, and it might be in your best interests to both consult experts such as Practical Debt Relief as well as to do your own research on the subject. There are some restrictions on the types of loans, for example, that may not qualify for the program.