As the cost of higher education continues to rise, many students are turning to loans to help pay for their education. In the United States, the total amount of student loan debt has surpassed $1.7 trillion, and the average borrower owes more than $30,000.
With such a significant financial burden, it’s no wonder that many graduates struggle to make their monthly loan payments. Fortunately, there are student loan repayment assistance programs available to help.
Student loan repayment assistance programs are designed to help borrowers manage their loan payments, and they come in many different forms. Here are some of the most common types of repayment assistance programs available:
Income-driven repayment plans Income-driven repayment plans are a type of repayment plan that bases your monthly payment on your income and family size. The federal government offers several different income-driven repayment plans, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).
Loan forgiveness programs Loan forgiveness programs are designed to help borrowers who work in certain public service fields or who have made a certain number of qualifying loan payments.
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments while working full-time for a qualifying employer. Other loan forgiveness programs include Teacher Loan Forgiveness, Nurse Corps Loan Repayment Program, and the National Health Service Corps Loan Repayment Program.
Employer repayment assistance Many employers offer student loan repayment assistance as a benefit to their employees. Some employers offer a set amount of money each month to help their employees pay down their loans, while others offer a lump sum payment to help pay off a portion of the loan.
State repayment assistance programs Some states offer student loan repayment assistance programs to their residents. These programs may include loan forgiveness, refinancing, or other types of assistance.
Non-profit repayment assistance programs There are also non-profit organizations that offer repayment assistance programs. These programs may offer grants or loans to help borrowers pay down their student loans.
If you’re struggling to make your monthly loan payments, it’s important to explore all of the repayment assistance programs that are available to you.
Depending on your situation, you may be eligible for one or more of these programs. By taking advantage of these programs, you can ease the burden of your student loans and work towards a debt-free future.