School Loan Forgiveness
Through school loan forgiveness, you can cancel whole or part of your educational loan in exchange for performing some type of public service. For example, serving as a teacher at low-income schools or in schools where there is a shortage of teachers, as a child care provider, serve as a doctor at needy communities, do volunteer work for the armed forces etc.
If you have availed federal loan consolidation then you are eligible for school loan forgiveness program. Loan forgiveness programs are being offered to teachers, nurses, young doctors as well as lawyers and Peace Corps.
There are a variety of school loan forgiveness programs. They are as follow:
Low-income school programs is designed for those students who are willing to teach in elementary or secondary schools that serve the low-income communities. The Perkins loan borrowers can get up to 100 percent of their loan canceled by serving over a period of five years in any such school. Federal Stafford loan borrowers can cancel up to $5,000 if they serve for five consecutive years in an approved school. Few subject teachers like math, science and special education may be eligible for loan forgiveness up to $17,500.
Believe it or not a wide range of sources administer loan forgiveness programs or loan repayment programs are for teachers. Under Targeted Teaching Programs Federal Perkins Loan borrowers can get their loan canceled if they teach full-time in a subject area that has a shortage of teachers. These subjects are mostly science, math, foreign languages, and special education etc.
According to Child-Care Provider Programs you should be able to work full-time as a child-care provider in a facility that is meant to serve the low-income families, in order to receive loan forgiveness. You can be eligible for 100 percent loan forgiveness under this category.
If you serve as a volunteer for certain organizations for a particular time period, you may be eligible for school loan forgiveness. Organizations such as:
- The Peace Corps: If you serve as a volunteer under this category for a period of 2 years, you can waive up to 15% (for each year of service) of your school loan.
- VISTA: Volunteer with private, non-profit groups that help eradicate hunger, homelessness, poverty and illiteracy. Provide 1700 hours of service and receive $4,725.
- AmeriCorps: If you serve for up to 12 months, you can receive $7,400 in stipends plus $4,725 received as an award for a year of full-time service.
- Military service: If you are serving in the Army National Guard then you are eligible to receive up to $10,000 through the Student Loan Repayment program.
- Legal and Medicinal studies: The National Health Service Corps offer loan forgiveness to students enrolled in medicinal programs on the basis that they serve the communities for two years. By availing this program they can wipe out as much as $25,000 every year.
Moreover, the same offer is also valid and open to lawyers or legal advisors who pursue their career at public legal firms. Around fifty law schools are offering school loan forgiveness programs. Equal Justice Works, formerly known as National Association of Public Interest Law, has a list of schools on its website that offer school loan forgiveness program. You can apply for the loan on line: http://studentaid.ed.gov.
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