All About Federal Student Loan Forgiveness

August 28, 2011

Federal Student Loan Forgiveness

The first question that graduates ask themselves is “how the heck am i going to pay my debt off?! Well federal student loan forgiveness can be an excellent method to utilized when trying to pay federal student loans off faster, helping you pay either a big chuck of your loan off or erase the entire thing, in other words a clean slate. If you currently have a student loan and are looking for more information on student loan forgiveness, the information that follows will explain all there is to know about federal student loan forgivesness so you know what it can do for you and how to use it to you benefit.

federal student loan forgiveness

Federal Student Loan Forgiveness – Forgiveness Methods

Federal student loan forgiveness can keep you from being one of the fast growing number of students who file student loan bankruptcy which you want to avoid at ALL costs because student loan stay on your credit record forever! These forgiveness programs can be used if you used Perkins, Stafford, PLUS or FEEL loans. Anyways, there are many programs that you can use that offer you federal student loan forgiveness, to give you an idea of what is out there for you to use, here are the various ways which you can recieve some help from for you loans:

Community Service:

You can find federal student loan forgiveness programs through these three organizations: Peace Corps, Americorps as well as VISTA. These organizations will offer you either a lump sum after working a certain amount of time which is usually a year of service and around 7000, or you can provided community service through them for multiple years and each year they will pay for a percentage of your debt, usually around 15% of each years service.

Teachers:

If you are a teacher, you can get your federal student loans forgiven by working in certain ares of your community, these being either low income areas as well as areas where quality teaching is needed the most. WIth this option, you usually will have to enroll in a 10 year payment plan where you pay on time payments each month for 120 months, and at the end of the term you will be awarded by having the rest of your debt wiped away, no matter how much is left.

Medical (Doctors, Nurses)

If you are looking to enter into the medical profession, you can get your debt forgiven substantially or fully if you work you provide your services in low income areas as well. The Perkins Loan offers up to 60 percent cancellation for nurses, with the Stafford, you can get up full cancellation after working a certain amount of time in the profession.

Social Work & Lawyers

The social worker profession provides you with the chance to get federal student loan forgiveness as well in the form of total cancellation of your debt after what is usually 5 years of service. If you have just completed law school, you can get your debt forgiven completely after working a public interest job for 10 years.

Child Care – Providers of childcare can also qualify for federal student loan forgiveness, for example with the FEEL program offers you the chance to get all of your debt forgiven after providing childcare for a certain amount of time.

Military:

If you happen to be in the military or are looking to enter into the military, federal student loan forgiveness can be found in different ares of service.

Federal Student Loan Forgiveness – Conclusion

If you like the benefits of federal student loan forgiveness and apply it to your debt, the best thing to do now is to contact your loan provider and ask them what is offered for your particular situation. They will either provide you with the information you need, or will refer you to someone who will be able to help you get started. If you happen to not like the idea of federal student loan forgiveness but are still looking for ways in which you can manage your debt, you can either seek out a student loan consolidation company, talk to your lender about a possible modification of your repayment plan to where it would be more affordable for you to make your payments.

Category: Student Loan Forgiveness

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