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Many people have to use student loans to complete their education. If you were one and are now faced with student debt, the federal government has some very good news for you. There were two new programs that began in July 2009 that can help you to pay your student debt in full.

The first program is called income based repayment or IBR. This option is for student loans and can help to reduce your payments to the place where they are affordable. That means that some people with low incomes will not have to make a payment until their income increases and that nearly everyone will qualify for payments that are less than ten percent of their income. Only those with incomes over 60, 000 per year will have to pay more than ten percent of their income on student loans.

If you are enrolled in these programs, and still have debt after twenty-five years of payments, the debt is then forgiven. Time that your loan is in deferment or when you are not required to make payments on the student debt are also included in the twenty five year period required for debt forgiveness.

Furthermore, if your interest payment is more than your required payment, the government will pay the additional interest for you.

You will find that there are some special requirements for this program, but be if you qualify, it can save you money.

A second program is furthermore being offered that will affect workers who are employed by nonprofit or government agencies. The program gives forgiveness of student debt after a 120 month period of working for a qualified employer and making student loan payments.

Examples of qualifying employers include government agencies and 501(c)(3) nonprofit agencies. Again you will want to check to see if your employer qualifies you for this program. State, local, tribal and federal organizations do qualify.

The law is retroactive, so payments you have made since October 2007 will count toward the ten year time frame. Debts could be forgiven by October 2017 for some workers. This program can also be combined with the IBR.

The types of student debt covered include Stafford loans, Grad PLUS loans or even consolidated loans that are included in the Direct Loan program. If you have loans that are a part of the Guaranteed loan program, you need to switch them to the Direct Loan program to qualify.

Graduates that are still using the standard ten year payback plan may feel that they are drowning in debt. Making the switch to one of these programs can lower your monthly payments and allow you to finally see the light at the end of the tunnel. By keeping student loan payments current there will come the day when your student debt has finally been paid in full.

Dawn Enstruthe writes for website Ginko Financial which has details of Chicagoland consumer counseling and home refinancing after a bankruptcy.

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