Student Loan Forgiveness

Normally once a student has graduated college, theyteaching in certain subject areas such as special
have about six months before they need to begineducation, mathematics, science, foreign languages
paying back their student loans. However, it isand bilingual education. The chief administrator of the
possible to have some or all of your student loansqualified school at which you taught will have to
forgiven. It will usually involve trading your time in averify your participation and completion. Depending on
variety of different ways.your qualifications, you could earn forgiveness of
To qualify, you must be involved in volunteer work,from $5,000 to as much as $17,500 in loans.
serve in the military, teach in a designated secondaryCertain health care professionals can also have their
or elementary school for low-income or specialpayments deferred or totally forgiven with
education students or other "teacher shortageparticipation in the Nursing Education Loan Repayment
areas", and meet other various requirements.Program. The NELRP will repay 60 percent of the
Peace Corps volunteers may be able to deferqualifying loan balance of registered nurses who are
payment on their Stafford, Perkins, direct andselected for funding in exchange for 2 years of
consolidation loans. Also, they can receive forgivenessservice at a critical shortage facility. Those selected
for their Perkins Loans. For each of the first twomay be allowed to work a third year and receive
years of service, 15% can be canceled. Then, for therepayment for an additional 25 percent of their
next two years, 20% can be canceled for each yearqualifying loan balance. Only about 15% of the total
for a total of 70% for a four year commitment.number of applicants were selected to participate in
Partial student loan forgiveness through volunteerthe program for the last two years.
work can also be achieved through VISTAThe National Health Service Corps Loan Repayment
(Volunteers in Service to America), a private nonProgram provides for up to $50,000 in forgiveness
profit group dedicated to the eradication of povertyfor qualifying educational loans in exchange for two
in the United States. A one year commitment toyears service in a underserved communities. Areas of
VISTA will allow you a $4,725 education award. Yourneed currently are primary care professionals,
student loans may be placed in deferment orincluding dental and mental and behavioral health
forbearance while you are serving.clinicians.
The Army National Guard has a program calledThere are other, less common ways to become
Student Loan Repayment Program (SLRP)which willeligible for partial or total student loan discharge. For
provide for forgiveness of up to $20,000 in studentexample, if the school happened to close within 90
loans. It's available to those who have existingdays of your enrollment and you were unable to
student loans when enlisting or those who get thefinish your course(s), you may be eligible for a partial
loans after joining. This program is in addition to thedischarge of your loan, dependent on the amount of
Montgomery G.I. Bill benefits and tuition assistanceyour expenses. If you did not receive an expected
program. The downside to this is there is a six yearrefund, you may be eligible for forgiveness of the
commitment.amount of that refund. If your signature was forged
If the military isn't for you, and you don't really wanton your loan agreements, your loan can be forgiven.
to be a volunteer for years just to get rid of yourIf you die or find yourself temporarily or permanently
loans, there are a few other options available.disabled, you may receive student loan cancellation.
Student loan forgiveness for either Perkins Loans orIf you are thinking about a student consolidation loan,
Stafford Loans can be achieved through full-timecheck first because by consolidating, you may lose
teaching positions at a low-income school asthe opportunity to have certain loans forgiven.
designated by the U.S. Department of Education or