Student Loans – Student Loan Forgiveness Programs

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A lot of students pursuing a college or higher education become inundated with the overbearing burden of student loans. In such circumstances Student Loan Forgiveness programs could just be answer to help students cope with increasing financial pressures.

Student Loan Debt Forgiveness

All student loan debt forgiveness programs are federal government backed. As a result of this in exchange for the forgiveness of the entire or portion of your student loan, as a condition you will need to dedicate an initial part of your career to certain fields of work. This may either be volunteer work, service in the military or if you are in the medical profession you may need to work in a rural are or in conjunction with certain communities.

Student Loan Repayment Programs

These loans are more popular than student loan forgiveness programs. In most cases this is an arrangement whereby one of two things happens: either you get additional funds to pay your existing lender or your employer makes payment contributions directly to your loan provider.

Loan Forgiveness Employment

In order for a student loan to be forgiven the student must enrol and work in one of the following fields for a period of 10 years at least and during the ten year period you are required to make 120 contributions to the program. Listed below are some details of the types of acceptable employment for the student loan forgiveness program:

  • Social/Volunteer Work: Students can offer their volunteer services for AmeriCorps or for organisations like Peace Corps. While working for the Peace Corps students can request deferment of payments on loans like Stafford or Perkins. In addition to this students can also offer their services for Volunteers in Service to America (VISTA) to work in close to 70 developing nations.
  • Armed Services: Students can opt to work for the armed forces in order to get their student loans abolished. However it may be of interest that the veterans association in itself provides numerous grants and scholarships.
  • Teaching: If students become primary or secondary teachers and are involved in the education of low income earning family students then under the stipulation of the NDE Act (National Defence Education) they can get their Perkins loan forgiven.
  • Legal and Medical Practitioners: There are numerous legal education institution which forgive student loans if they serve the public at large and work for Non-Profit organisations. Medical students on the other hand can get their student loans forgiven by working for organisations such as National Health Service Corps.

Federal Government Loan Forgiveness Program

The government is very eager to help students relinquish themselves of education in debt. In this regard students may need to work as teachers for the governments in areas dealing with low income earning families or with children at high risk. Law enforcement students might be required to work as correction officers and medical students may need to work in rural areas and with low-income communities. Students can also serve in the armed forces in areas of at least 50% imminent danger and volunteer work in the Peace Corps or for VISTA is also counted.

Although student loan forgiveness programs are very beneficial they usually come with the underlying liability of providing an initial part of your career to a certain kind of employment as dictated by the program. It is in the best interest of student to take in to consideration all the surrounding factors prior to signing up or enrolling in any of the factors.

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