Pros and cons of student loan forgiveness

Posted on | By Divya Chauhan

The federal government created student loan forgiveness programs, which are limited to student loans. These initiatives are just one of the many advantages that come with student loans. With the aid of these programs, you can pay off all of your debt and avoid paying thousands of dollars in interest. But it’s not that easy. So Let us check out the pros and cons  to know more about of student loan forgiveness

Pros of student loan forgiveness

They assist you in paying off your debt from student loans

Your remaining federal student loans will be forgiven once you have made the 120 monthly payments necessary if you are qualified for the public service loan forgiveness program. Over the next ten years, these payments must be made. The remaining loan balance will then be forgiven.

Numerous jobs are eligible for these programs of forgiveness

This is fantastic because it expands the range of work you can do. As long as the employer agrees to the program, you can work any type of job you want.

The amount that was forgiven is not subject to tax

Some student loan repayment plans have tax repercussions because the IRS views the amount forgiven as taxable income. With the teacher loan forgiveness and public service loan forgiveness programs, this is not the case. As a result, you shouldn’t be concerned. Once the loan balance is forgiven, the IRS won’t hit you with a hefty tax bill.

Cons of students loan forgiveness

It requires a lot of time

Depending on the program, you might have to pay back your loans over up to 25 years while still in debt. Being in debt for many years, if not decades, can be very stressful.

The requirements are extremely strict

To benefit from a forgiveness program, you must first make sure that you are working for approved employees. After applying, you must follow a stringent set of guidelines to ensure your participation in the program up until your student loan balance is forgiven.

Job prospects are limited

The jobs you can take are restricted if you want to apply for a student loan forgiveness program. These career paths may not be everyone’s first, second, or even third choice, even though they are excellent for graduates who are enthusiastic about working in the public sector or education. It might be a significant compromise.

It will be necessary for you to commit to a long-term position

You must devote at least five to ten years to your chosen line of work to be eligible. If you are not interested in working in relevant jobs, this may be difficult.

Thank you for reading this article. If you have any queries regarding our article on the Pros and cons of student loan forgiveness then do comment in the comment section below.

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Author Profile

Divya Chauhan
Divya Chauhan is an expert writer with 10+ years of experience as a content writer. They specialize in making complex topics like IT, Health, and general topic easy to understand. Divya has written over thousands of articles to help people with their content. Prior to joining Way2benefits’s editorial team in 2020, Divya worked as a Professor of BCA college and freelancer blogger.

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