Thus debt appears as an unending mountain journey. The good news? Many people find assistance from nontraditional sources because they are not alone in facing this problem. Numerous debt relief options operated by the government remain unknown to most Americans despite the well-known choices of bankruptcy and credit counseling programs. This comprehensive guide reveals discreet government debt relief options which might serve as your necessary financial support.
Federal Student Loan Forgiveness Programs
The Public Service Loan Forgiveness program generates recognition but the other debt forgiveness options remain unknown. For instance:
Income-Driven Repayment Forgiveness
Under income-driven repayment terms borrowers can get their remaining loan balance wiped out after they make payments for 20 or 25 years. Several borrowers are unaware that they will automatically get this forgiveness benefit when they continue their enrollment and satisfy their yearly requirements.
Temporary Expanded PSLF (TEPSLF)
The Temporary Expanded PSLF (TEPSLF) serves borrowers who did not qualify for PSLF since they were using the wrong repayment plan. This program enables public service workers to receive another opportunity.
Homeowner Assistance Fund (HAF)
Under the American Rescue Plan Act of 2021 the Homeowner Assistance Fund received its establishment. The program exists to provide financial relief to homeowners dealing with COVID-19 through payments for mortgages and utilities as well as property taxes.
The HAF program exists independently under each state although each one uses its distinct eligibility standards. Through this fund homeowners who cannot afford their housing payments can avoid losing their homes or get their utilities back on.
IRS Fresh Start Program
Struggling taxpayers benefit from the tax relief program run by the IRS Fresh Start Program because it offers them an escape route from their severe tax debts.
Key Features Include:
Installment Agreements: Make manageable monthly payments.
Sign up for an Offer in Compromise (OIC) to settle your existing tax debt at lower than full debt amount.
The withdrawal of tax liens from your credit becomes possible through payment or settlement of your debt.
A great number of people fear the IRS yet this initiative proves to be advantageous for tax payers.
Supplemental Nutrition Assistance Program (SNAP) for Seniors
Getting relief from debt responsibilities does not necessarily translate into receiving cash payments. Cutting down food expenses allows you to put money into debt repayment efforts.
The Supplemental Nutrition Assistance Program provides benefits to both elderly citizens and people who only receive fixed income benefits without receiving many applicants because they think they are ineligible. States provide special simplified application systems to their older adult citizens.
Temporary Assistance for Needy Families (TANF)
Cash benefits form only the core component of TANF assistance which also includes support in these areas:
Job training
Childcare
Transportation
The TANF program gives brief financial help coupled with access to long-term solutions for those whose debt problems stem from employment uncertainty or income challenges.
Hardest Hit Fund (HHF)
During the 2008 financial crisis the Hardest Hit Fund launched its service but it continues to operate in certain states through assistance programs for homeowners facing unemployment or major income reduction. States running this program provide assistance for mortgages and reinstatement help and partial principal reductions.
Rural Development Loan Forgiveness
The USDA Rural Development program can provide payment assistance to homeowners who bought homes under their program. Temporary as well as permanent payment reductions exist but they get ignored too often.
State-Specific Debt Relief Grants
The government of various states delivers debt relief services or forgiveness plans for the following conditions:
Medical debt
Utility bills
Rental arrears
Due to limited funding and seasonal availability of these programs you need to check your state’s department of human services or housing authority on a regular basis.
Final Thoughts
The main reason why people avoid seeking debt relief stands in their belief that it’s complicated or inaccessible to them. Many available programs of federal support that get minimal use actually provide substantial help for people in need.
To get assistance with your financial issues please contact these establishments:
Contact your state Department of Human Services Department.
The IRS or a certified tax professional
A HUD-approved housing counselor
Your federal student loan servicer
Helpful assistance exists throughout various programs although occasionally you need to understand their locations.
