Find out if you can reduce or eliminate your student loan debt with a loan forgiveness program. Read about eligibility requirements and discharge options.
Most Americans have had to seek some type of aid to supplement their college tuition costs. Much of this aid is provided by the Federal Government or private banks in the form of loans. Both of these worthy institutions supply millions of dollars each year to ensure the higher education of America’s citizens. These dollars must be repaid however. If you are unsure as to whether or not you will be able to repay your student loans, you may be eligible for student loan forgiveness.
Student Loan Forgiveness
Student loan forgiveness is possible whether you received Federal or Private student loans. The government has been forgiving student loans for several years as part of its progressive legislation. If you meet the eligibility requirements, you can have all or part of your student loans forgiven. Both the Federal Government and State local governments have enacted legislation to assist those who may otherwise be unable to repay their student loans. Those who are approved are often those who are performing civil duties in other countries, such as military personnel. Others include medical personnel, teachers, and lawyers who work in at risk areas.
Federal Student Loan Forgiveness
As a result of the Nation Defense Education Act, Congress allowed for a portion of the Perkins loans and FFELP loans to be forgiven of certain teachers, provided that they met the eligibility requirements. Such requirements involve the location of their employer. If you are a teacher who is working at a school where secondary and elementary teachers are in high demand, you may be eligible for the forgiveness of up to 30% of your loan. Also, teachers who are employed by schools with large numbers of low income students will be considered.
Medical doctors working in third world countries or areas that are considered to be at risk are also highly capable of obtaining student loan forgiveness. The National Health Service Corp repays many student loans every year for this purpose. Student loan forgiveness programs also look kindly on medicine or law at a non profit organization.
Another group that is given attention by loan forgiveness programs is law enforcement. The Law Enforcement Officials Student Loan Forgiveness Program will cancel your Perkins student loan if your establishment meets requirements.
Private Student Loan Forgiveness
Student loan forgiveness eligibility varies when a borrower has primarily private student loans. While private student loans are not as readily forgiven as student loans that are federally funded, you can still find programs that will forgive a portion of your loans. Most programs that forgive private loans are affiliated with the human resources department of non-profit organizations.
Those who are currently offering charitable services in the Peace Corps or Vista volunteer programs can apply to have a percentage or all of their private student loans paid. For example, working a minimum of 1700 hours within the Vista volunteer program will qualify you for compensation of approximately $4,725 toward your private student loans.
Other Eligibility Options
While public service employment is the ultimate factor that will discharge all or a portion of your student loan, it is not the only way. Fortunately, moneys owed to the Federal government or private loan organizations will not require compensation should the borrower pass away before the loan has been repaid. This is a cause of worry when a student has deceased parents and believe that they must continue to pay the loan. This is not the case, however, thanks to Death Cancellation. As long as a death certificate is provided, you can be approved for loan discharge of your PLUS loans.
Similarly, your loan can be discharged in the event that you become disabled. Permanent physical disability that prevents you from earning a living will qualify you for loan cancellation. Your loan provider can assist you in the qualification process for any exceptions of this manner.