This new program pays $ 75,000 of your student loan

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There’s a new student loan repayment program – and it can help you repay $ 75,000 student loan.

Here’s what you need to know.

New student loan repayment program

This new student loan program is helping fight two epidemics in the United States: student loan debt and opioid addiction.

Student loan debt is now the second highest category of consumer debt – second only to mortgages and higher than credit card debt. According to personal finance website Make Lemonade, there are more than 44 million borrowers who collectively owe $ 1.5 trillion in student loans. The average student in the 2016 class has $ 37,172 in student loan debt. The average student in the 2017 class has nearly $ 40,000 in student loan debt.

According to the US Department of Health (HHS), more than 130 people die from opioid drug overdoses every day. In 2017, HHS declared opioids a health emergency. Approximately 2 million people have an opioid use disorder and 47,600 people have died from an opioid overdose.

How this student loan repayment program works

To combat these dual epidemics, the National Health Service Corps (NHSC), a division of HHS, has launched a new student loan repayment program that allows qualified healthcare professionals up to $ 75,000 for three years of full-time service with an approved one Substance use provides a source of disruption, especially in “health worker shortage areas”. There is also a three-year part-time option that allows up to $ 37,500 to pay back the student loan.

The aim of the program is to attract high quality clinicians to underserved communities in order to improve patient access to quality prevention, treatment and recovery services for substance use disorder.

Student Loan Repayment Program: How to Apply

To apply for the NHSC Employee Loan Repayment Program for Substance Use Disorder, you must meet several requirement.

Qualified health professionals for the program include doctors, nurses, pharmacists, midwives, medical assistants, behavioral health professionals, and addiction counselors, among others.

Public sector lending

This new health care program is different from the public service loan program. If you do not qualify for this program, you can consider getting public service loans.

the Public Sector Loans Program is a federal program that provides federal student loans to borrowers who are full-time (more than 30 hours per week) in an eligible federal, state, or local government service or 501 (c) (3) community service that qualifies 120 timely payments.

Other strategies for student loan repayment

These aren’t the only student loan repayment strategies. Consider these options:

Income-oriented repayment: Income-based repayment plans are available for your federal student loans, and your monthly payment is based on your income, family size, and other factors. While you can lower your monthly payments with income-oriented plans, you still accrue interest on your student loans. You can waive your student loan after 20 to 25 years. However, you may owe income tax on the amount of the waived student loan.

Student Loan Consolidation: You can combine your federal student loans into one direct consolidation loan through the federal government. This translates into a single student loan, servicer, and monthly payment and can help you organize your federal student loans. However, the interest rate on your student loan will not go down; it is a weighted average of the interest rates on your current student loans, rounded up to 1/8%.

Refinancing the student loan: Refinancing the student loan allows you to consolidate your federal student loans, personal student loans, or both into a single student loan with a lower interest rate and one monthly payment. The result is that you can save money and pay off your student loan every month. However, if your income is inconsistent, you are unemployed, or want to sign up for income-based repayment plans, then student loan refinancing may not be for you. That said, you can refinance private student loans even if you keep your federal student loans.

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