Wipe Out Student Loans and Be Debt Free

Now that you are finished with your college education, it is time for an economic education. Your student loans are going to become due. You will have to repay this debt soon, but there is a way to cancel part of your loan.

Loan forgiveness programs

There is a way to get a lot of your student loans forgiven. There are programs known as loan forgiveness programs. Loan forgiveness programs differ by state. Check your states requirements. If you are a young college student without many other financial responsibilities, this program could be the answer to greatly reducing your student loans.

Who can enter a loan forgiveness program?

These programs are open for student volunteers with the Peace Corps and AmeriCorps. Teachers, doctors, and many other recently graduated professionals can all enter a student loan forgiveness program.

What it is and how it helps

As a young professional, you can work in a community in need for lower pay and get some student loan reduced at the same time. There are career specific programs.

  • Nursing Education Loan Repayment Program: this will pay up to 60% of student loans. A registered nurse agrees to work at least 32 hours a week, for 2 years, for a non-profit that need nursing services. Agree to work 3 years and take 25% more off your student loans.
  • National Health Service Corps. Program: This is a program for those in the medical field. A medical professional can get $25,000 a year of their student loan paid for 2 years worked in a community in need of services. You can work longer for a bigger pay off of your student loan.
  • Loan Forgiveness Program for Teachers: Teachers work for 5 years in a school in need. Math, science, special education, as well as other teachers who work in lower income schools are eligible to forgive $5,000 to $17,500 of student loans.
  •  Loan Forgiveness for Public Service Employees: this one requires a larger commitment of 10 years in public service. After 10 years, your student loans are paid and you owe nothing. Jobs included in this program; public health and safety, social work, library, and some law professionals. It is also required that you pay on your federal direct student loans for 10 years. The rest of your student loans will be forgiven. This program is good for those who have enormous student loans that could not possibly be paid in 10 years.
  • Volunteer Programs: A Peace Corps volunteer who has Perkins student loans are able to forgive up to 70% for 4 years of service in the Corps. More is forgiven for additional years. Other student loan payments can be deferred during this time of service.

AmeriCorps gives $4725 annual awards for education. Apply this award to current or future student loans. Several colleges offer matching awards, which makes it possible to have $9,450 for your loans.

It is possible to cancel your student loans

Check into the loan forgiveness programs that are available in your state and at your college. Your financial adviser will have further information on these types of programs.

 


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