Are there any government programs to reduce the interest rate on student loans?

Yes, there are government programs that can help reduce the interest rate on student loans. The Washington State Higher Education Coordinating Board offers a student loan forgiveness program for Washington residents. This program provides eligibility for up to 40% of the principal loan amount to be forgiven after five years of repayment. The borrower must make 120 payments during this period to obtain maximum loan forgiveness. The federal government also provides loan repayment assistance through income-driven repayment plans. These plans are designed to lower monthly payments, and many even offer loan forgiveness after making a certain number of payments. Income-driven repayment plans are based on the borrower’s income, and payments are set as a fixed percentage of the borrower’s discretionary income. After a set period of time, the remainder of the loan may be forgiven, although taxes may be due on the forgiven portion. Additionally, the federal government offers a Teacher Loan Forgiveness Program for teachers who have taken out Stafford loans or a PLUS loan. Full or partial loan forgiveness may be available after five years of teaching in low-income schools. Finally, Washington state also offers a Public Service Loan Forgiveness Program. This program offers loan cancellation for borrowers who have been employed in the public sector for 10 years. To qualify, borrowers must have made 120 payments while working in the public sector.

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Are there any government programs to reduce the interest rate on student loans?

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