What is Student Loan Forgiveness?
Student Loan Forgiveness
Did you even know this is possible? Well it is in some circumstances so cross you fingers and let’s see if you fit into any of the ways to have all or part of your student loan debt forgiven.
Volunteering
With the Peace Corps you are able to defer payments of Stafford and consolidation loans and you are able to get cancellation of Perkins loan debt. With the debt cancellation you can get up to seventy percent of the total debt canceled, 15% for each year of peace corps service. Within the AmeriCorps program you can earn cash, up to $7,400 and a credit of $4,725 toward your student loan debt. The AmeriCorps program lasts 12 months. Volunteers in Service to America is a network of non-profit and community organizations where when you complete 1,700 hours of community service you can get $4725 credited toward your student loan debt.
Military Service
Depending on recruitment needs of the various branches of the military you can oftentimes enlist and get a student loan credit. These programs come and go so you need to discuss them with a local recruiter. One ongoing program is through the Army National Guard, they have a program where you can earn up to $10,000 in student loan money. For further information and program eligibility you should seek out a local National Guard recruiter.
Teaching
If you are willing to teach school in certain low income areas you can earn significant credits toward your student loan debt, assuming it is a Perkins loan. Under this program you can earn a 15% credit for each of your first two years of teaching, a 20% credit for each of your third and fourth years teaching, and a 30% credit for your fifth year teaching. This is an incredible program that was designed to encouraged talented young teachers to lend their talents to schools that are in need of this type of youthful energy.
In addition to the above there are also many Federal Teaching Student Loan Forgiveness programs for both Stafford and Perkins loans. The rules are similar to the above but the ways in which to qualifying are much more far reaching than simply teaching in select schools. If you have the willingness to teach, it may be the best way to get your loans forgiven.
Law & Medical School Debt
There are numerous programs that offer significant medical and legal school debt forgiveness. These programs are offered by various organizations within the government. If you have this type of debt and are willing to direct your career in a way that will reward you with debt forgiveness, then you should check into these programs. Even if you feel that you will not be willing to follow a loan forgiveness path, you should still look into the programs, some of them may be along a path you have already chosen for yourself.
Federal Worker Programs
Many Federal agencies have loan forgiveness programs that are specifically designed to recruit workers into public service. These programs oftentimes range from $10,000 up to $60,000 in debt forgiveness. These are programs that are certainly worth looking into especially if you are already planning to work for a Federal agency or department.
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