Student Loan Forgiveness Programs
51478
Finance > Personal Finance
Oct 30, 2007
peter1402
Student Loan Forgiveness Programs
There can be no better news for a student loan borrower than to hear that their loan has been forgiven. This means that a portion, or perhaps all of the loan is cancelled and you no longer have to budget part of your income towards making your monthly student loan payments. Keep in mind that this option is not available to every student loan borrower, but there are special situations in which all or part of a loan can be forgiven. You must remain realistic and realize that there are only a few specific circomstances in which your student loans may be forgiven. These situations are outlined below. Volunteering If you volunteer for certain organizations, you may qualify for loan forgiveness. -$4,725 can be used toward your student loans if you serve in AmeriCorps for 12 months or more. -Peace Corps volunteers can have 15% of their Perkins loan cancelled for each year of volunteer service, up to 70% of the total loan amount. They can also have their Stafford and consolidated loans deferred. -For 1700 hours of service, Volunteers in Service to America may receive $4,725. Teaching Students who become full time teachers may have part of their student loans forgiven in certain circumstances. If you become an elementary or secondary school teacher with students from low-income families, a certain portion of your Perkins Loan can be forgiven, depending upon the length of your service. - 15% for years one and two - 20% for years three and four - 30% for year five Check with your school district administration to determine whether your school is eligible for loan forgiveness under these provisions. Teachers may also be eligible for other loan forgiveness programs depending upon the state in which they teach. Legal Professions If you take a public service or a non-profit position after graduation, some law schools will forgive your loans. Visit the Equal Justice Works website for more details regarding cancelling your law school loans. Medical Professions The National Health Service Corps will forgive student loans for registered nurses and physicians who work in medically underserved areas. Be aware that the criteria for forgiving student loans may differ between federal and private student loans, and among the groups forgiving the loans. If you find you don't qualify for any of these forgiveness programs, but you would still like to lessen your payments, consider consolidating your loans. This will allow you to spread out the payments over a longer period of time, thus lowering your monthly payments.
Peter Kenny is a writer for Finance 123. Please visit us at Cash Back Credit Cards and Home Equity Loans
send email to peter1402
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
A brief discussion of money saving tips for a Disney vacation.
Category:
Another thing to remember with cash advances is that you usually cannot use all of your available credit for such purposes
Category:
A brief discussion of the basic steps to take to manage debt.
Category:
During the last several years the subject of flood insurance has become somewhat controversial
Category:
With some planning and discipline, you can begin to pay down your debt obligations and begin to see some real progress in your financial status
Category:
there is no reason why you should have to pay an annual fee for a normal credit card
Category:
Credit counseling can be very helpful for some consumers who find themselves in debt trouble
Category:
A brief overview of student loans, their costs and application processes.
Category:
IRA's (Individual Retirement Account) are very popular these days, but there is often some confusion as to what a person can and cannot do in terms of rolling the account over
Category:
There are many types of insurance available. Home owner's insurance, automobile insurance, life insurance, to name just three
Category:
An explaination of consumer credit counseling and debt management programs.
Category:
If you are someone whose career and place of residence changes a lot, then you might want to keep your banking constant
Category:
A secured card is a credit card that requires you to deposit a certain amount of money into a savings account
Category:
If you have any questions about your loan or the interest that is being charged ask the credit person to explain it to you in detail
Category:
The vast majority of consumers will, at some time or another, find themselves in debt
Category:
There are many things in life that the average household can live without, but life insurance should not be one of those things
Category:
Every year, thousands of people ask themselves the question of how to find the best home loan
Category:
It is important to remember that as well as being safe online, you should make sure your computer itself is safe
Category:
Other links at Finance > Personal Finance
Families are beginning to feel the impact of a slowdown in the economy with a new survey finding that parents are cutting back on the amount they spend on their children.
Category:
Anyone who has gone through a bankruptcy knows just how stressful it can be. Having the help of a good bankruptcy lawyer will help ease some of that stress.
Category:
Homeowners need to be proactive in reducing pressures on their finances, an industry expert has reported.
Category:
A growing number of Britons are constantly in the red, falling into their overdraft at least once every month, according to new research from a price comparison website.
Category:
Debt because of your student loans will not go away if you ignore them. You need to take action to get control of your life.
Category:
Site Sponsor
Directory Statistics
Articles: 68285
Categories: 501
Yahoo Entertainment
