For years, the youth has been highly encouraged to take up tertiary education courses despite it providing diminishing returns in the labor market, and complete this through subsidized loans since getting a degree is always coupled with the problem of expensiveness. At present, the estimate amount borrowed by an average college graduate ranges from $26,450 to $31,200. Luckily, some were able to avail aids that may either reduce their owed money or completely wipe off the entire debt.

The procedures of programs offering pardon for arrears may take up a certain period, or may be immediate. However, they do not cover private loans, as these are only removed by bankruptcy or a rearrangement with the lender. At present, there are four main offerings that make these services available, which are through public service, Perkins loan cancellation, income based, and teacher loan. Anyone can avail these except for those debts in default status, meaning it has been unpaid for more than nine months. Each plan requires several documents and steps before the applicant obtains qualification.

In most cases, these programs may depend on your occupation as well, especially for those jobs that pay a hefty sum like doctors and attorneys. Individuals who serve in public schools may also be included in this benefit, which is used to attract teachers into working in a low-income educational institution, where there is a shortage of faculty members. Graduates who work in the public sector, meanwhile, can have their arrears eliminated within 10 years, while educators may have their trimmed down by $5,000 to $17,500.

Another option is the Obama Student Loan Forgiveness Plan, which is more of a debt restructuring initiative that may grant possible forgiveness. Through this, borrowers may consolidate their loans into a single one, and compensate for them through any of the following ways: standard, graduated, salary based, and Pay As You Earn (PAYE).

The standard type allows a gradual increase of payment aiming to spread it in the future when the person is able to earn a higher wage. For debtors under the earnings section, they must pay within 20 to 25 years, in which the remaining could be forgiven by the end of the term.

Special circumstances such as having a permanent disability either mentally or physically calls for a different approach. They are offered assistance by engaging in substantial activity, which is a terminology used in replacement of a job the handicapped. They must undergo a process in DoE and submit documents such as medical. Usually, it takes three to six months before you get the results. If you are considered eligible, you are not allowed to apply for any other loans until you get a letter that proves your participation in the said activities.