Understanding Student Loan Forgiveness Programs

The process of student loan forgiveness can provide you with a great deal of financial help. You can get part, or all, of your student loans eliminated if you qualify. Here are the basics of student loan forgiveness programs and how they work.

Basics

There are groups of programs through the Federal government that provide help to those with student loan balances. You typically have to be a member of a certain group to qualify. Each group will typically want you to complete certain tasks or work with them for a certain amount of time to qualify. These programs are designed to be big incentives for people to join their group or field. These are usually fields that have trouble finding enough qualified people to work for them. Once you meet the qualifications, they will either pay part of the loans for you or the Federal government will forgive them. This can be a huge incentive for those with large student loan balances. Without these programs, it will take many years to pay them off.

Volunteers

There are a few volunteer groups that can provide you with money towards your student loans. One such group is the Peace Corps. The Peace Corps can help you with Stafford, Perkins, or consolidation student loans. For each year of service that you provide to the Peace Corps, they are going to pay back 15% of your outstanding student loan balance.

The volunteer group AmeriCorps is another one that offers help with student loans. If you serve for one full year with them, they will give you $4725. towards your loans. The group VISTA also will provide you with the same amount for a year. These groups can be joined by anyone that wants to help their community and they can help you reduce your loans.

Military

Each branch of the military also has programs that can help you with your student loans. With the National Guard, for example, you can qualify for as much as $50,000 in student loan forgiveness. This could very easily take care of your entire loan amount. In order to get the money, you have to come in with a high school diploma, meet test score requirements, and fill a position that is in high-demand.

Teachers

Teaching is another profession that has programs designed to forgive student loans. One such program is designed to get more teachers into the field. To qualify, you must have been a teacher for 5 consecutive years and teach on a full-time basis. You have to teach for a school district that serves low-income families and you have to have generated the loans after October 1, 1998.

With these programs, you can get up to $17,500 worth of student loans forgiven. This can be a big incentive for people to get into the teaching industry and help supplement their financial situation.


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