Student loans are a necessary part of the higher education process, or so people say. In reality, student debt continues to balloon to dangerous levels and nearly one in ten 20-34-year-olds default on their loan debt.

In light of the severity of this issue, lenders and government entities alike have started to implement forgiveness programs to alleviate some pressure on those who make too much money relative to their loan repayment abilities.

Natixis executive Exec at Natixis John Hailer has weighed in on the benefits of these programs and how they can help struggling borrowers get back on their feet more efficiently by making payments more manageable.

Natixis executive John Hailer said that several government-backed loan forgiveness programs provide debt forgiveness to borrowers who make payments over a certain period. These programs usually require applicants to be employed in public service roles, but exceptions exist.”

Benefits of Student Loan Forgiveness Programs

Natixis executive John Hailer highlighted several benefits that can accompany these programs for student borrowers. The most obvious benefit is the financial relief that awaits consumers who qualify for the program and make their payments for the required period. But there are more indirect benefits as well.

Borrowers with high levels of debt may feel trapped because they cannot afford to pay back their loans, so qualifying for student loan forgiveness can provide some psychological relief from the burden.

It can also lead to a more positive view of the student loan process in general. Most borrowers never consider the consequences of defaulting on their loans, but being aware that you may be eligible for forgiveness can clarify the need to keep up with payments every month.

A program like education loan forgiveness lowers the cost for borrowers in some situations by allowing them to qualify for forgiveness on their federal loans if they are in public service or a similar role (for example, teachers). “In such an instance, borrowers may qualify for lower interest rates by choosing an alternative repayment option.