What are goverment programs for debts? There are multiple government programs and services designed to help those struggling with debt.
From loan different to consumer credit counseling, numerous resources can provide answers to questions about debt and offer much needed support.
Navigating through the available options might seem overwhelming at first, but with a thorough understanding of your needs and goals, it is possible to find debt relief.
In this article, we will look into the different government programs available to alleviate debt burden on individuals across the country.
What Are Goverment Programs For Debts?
Government debt relief programs are available to help individuals and families who are struggling with debt. These programs can provide assistance in the form of reduced interest rates, waived fees, and even debt forgiveness.
The government also provides protection against debt collectors by enforcing laws that limit their ability to harass consumers.
In addition to government-sponsored debt relief programs, there are also non-government organizations that offer assistance. These organizations may provide counseling services, budgeting advice, and other resources to help people get out of debt.
They may also be able to negotiate with creditors on behalf of the consumer in order to reduce or eliminate debts. It is important for those considering any type of debt relief program to research all options thoroughly before making a decision.
Free & Legit Government Debt Relief Programs
There are several legitimate government debt relief programs available to those struggling with their finances, such as Installment Agreements, Offer in Compromise, and Debt Management Plans. These options can help individuals pay off their debts over time while also reducing interest rates and fees.
Income-Driven Student Loan Repayment
The federal government has a vested interest in helping Americans with their student loan debt. With over $1.4 trillion in student loan debt currently plaguing the nation, it is more than all the credit card debt combined.
This crushing burden of student loans has meant that many are unable to make other investments, such as buying a home or starting a business, which could slow the economy.
Furthermore, those with student loans are taking more time to pay them back, meaning more Americans will spend more time in debt.
Student Loan Disability Discharge
The federal government offers a Total and Permanent Disability Discharge program which provides relief for individuals with long-term disabilities by eliminating all of their outstanding student loan debt.
The application process is easy and applicants must provide documentation from a medical professional to be eligible.
This program is helpful for those unable to work due to disability and can give them peace of mind not having to worry about repaying loans in the future.
Public Service Loan Forgiveness
The PSLF program is a great opportunity for public service employees to have federal student loan debt forgiven. This can be extremely beneficial for nurses and EMTs who incur high costs for their education and training.
After making 120 qualifying payments while employed in a public service job, the remaining balance on their loans will be forgiven, allowing them to focus more on quality care for their patients.
The Growing National Debt
The United States has carried debt since its founding and each major conflict has contributed to the ever-growing total.
In the 19th century, the debt ballooned from $65 million to over $2 billion after the Civil War, and in the early 20th century this grew to approximately $22 billion. By today, public debt stands at over $21 trillion as government spending continues to outpace revenue collection.
Government debt relief programs such as installment agreements, offers in compromise, and debt management plans are available to those struggling with their finances.
Other options include income-driven student loan repayment, disability discharge for those with long-term disabilities, and Public Service Loan Forgiveness for public service employees.
The US has had a growing national debt since its founding; today it stands at over $21 trillion.
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