The program is targeted at individuals working in public services, so the military personnel are eligible for loan forgiveness under this program. The program cancels any remaining student loan after 120 monthly payments made online personal installment loans Utah on time and consecutively. During this time, the candidate must have a full-time job (at least 30 hours/week). The program is not as direct as the CLRP, nor does it offer high forgiveness, since there are few chances that the military has a high amount of money to pay on their loan after 10 years of full payments. Also, the program was established in 2007, which means that individuals will start benefiting from it in 2017, so it is not a solution for military members in immediate need of help.
A good way of making the loan easier on the budget is to recalculate monthly payments. This will offer a partial relief on the financial burden and leaves more for the loan forgiveness coverage.
The National Defense Student Loan Discharge (NDSLD) program is aimed towards military personnel who accessed a loan through the Perkins Loan or a National Direct Student Loan programs and who served at least one year in an area with imminent danger and/or direct fire. The program has not yet reported the forgiveness rate or the number of people who have taken advantage of it so far, but it is certainly worth a try. Candidates must fill in a special DD 214 discharge form and explain why they think they qualify for the program. The form and the explanatory letter must be sent to the company which services the loan.
4. The Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act establishes a series of benefits for military personnel, including a maximum interest rate of 6% for any loan contracted before enrolling in the military service. Continue reading