Student loan forgiveness is a program through which a student would be able to eliminate the need of having to pay back the student loans that he/she had borrowed. However, the requirements to be eligible for this program are quite stringent and the qualifications needed are quite specific and specialized.
The U.S. Student loan debt has now reached $1.4 trillion. It’s not surprising, since the costs of college education has reached astronomical heights. But how can you deal with these changes to higher education? If your student loans are burdening you, it’s important to recognize that they can dramatically affect your finances.
What is this Program About?
Student loan forgiveness is a program where a student would be able to eliminate the borrowed student loan if he/she performs specified volunteer work. A student that would serve for a year in AmeriCorps would be able to receive money that can be used for loan payments. The Peace Corps members can receive deferments for their consolidated loans, Stafford loans and Perkins Loans and can also receive 70% relief for their Perkins Loans. The Vista Members can receive money that they can use towards repayment of the loans when they volunteer for 1700 hours. The students that serve in the military can receive around $10,000 for their loans.
The good news is you can repay your student loans or have them forgiven. Here’s what you need to know to do precisely that.
Types of Student Loan Forgiveness
As a result of public outcry, the government has provided a few simple programs to help you start paying off your student loans or have them forgiven. However, each program is unique and has different stipulations you should be aware of. Here are a few of them you should consider.
Closed School Loan Forgiveness
Did your school close before you earned your degree? If so, then Closed-School loan forgiveness might be the right fit for you. Every type of education loan is 100 percent eligible for discharge under this program. To meet the requirements for this type of forgiveness you must:
-Have been enrolled in the school before you completed your degree. If you had a leave of absence while enrolled, you might still be eligible for forgiveness.
-You withdrew from school within 120 days before the school closed.
Teacher Loan Forgiveness
If you are studying to be a teacher, then teacher loan forgiveness programs might be right for you. There are two ways to either have your principal loan reduced from $5,000 to $17,500. The two different teacher loan forgiveness options you can investigate are:
-Teachers Loan Forgiveness
-Perkins Loan Cancellation
To be eligible for these loan forgiveness programs you must meet these requirements:
- You have to provide direct classroom teaching inside a public school
- Pass your state licensing exam and be a fully certified teacher
- Teach full-time for five academic years
- Your school must qualify for Title I funding and services
There are also several other methods through which one can enjoy student loan forgiveness. There are many colleges that offer these options. A few states also offer eligibility for forgiveness to those in law enforcement. People in specific fields can also qualify. Federal government in the US offers a good variety of programs and options. These options are normally for Stafford Loans and for Perkins Loans. A good amount of the borrowed loan can be forgiven for teachers dealing with children from low income families or teaching children that are considered to be high risk or with disabilities.
Several students often face difficulties paying back the borrowed loan amount after graduation. These forgiveness programs can be potentially helpful to such students. The idea for these programs is to provide benefit to those who offer services to others who are less fortunate. Since they donate their care, time, expertise and energy to an area where not many people would be willing to work, they are rewarded and are relieved from a considerable amount of their financial obligation and debt. Since there are quite a lot of different programs available it would be necessary for you to fully research before you apply for one. There are several different resources available online today through which you would be able to find all the necessary information about these programs along with their eligibility criteria. Student loan forgiveness be a very rewarding program for those who qualify for it and apply for this program.