More student loan forgiveness information that you should know
Federal student loans forgiveness is the name used when the federal government decides to cancel a complete educational loan or part of it under a variety of circumstances. If a former student who took advantage of a federal educational loan to fund his or her college or post-college education decides to undergo federal student loans forgiveness, he or she should pass a number of qualifications.
These conditions or qualifications include:
– Having to perform volunteer tasks;
– Having to perform service in the military;
– Agreeing to practice medicine or teach in assigned areas;
– Meeting other criteria particularly stated by the loans forgiveness program.
Read on to know the particulars of each criterion to take advantage of loan forgiveness.
There are a number of organizations that offer federal loans forgiveness should a student loan recipient serve under them. These organizations include:
– The Peace Corps: Volunteers who serve in this organization may file to have their payment of their consolidation and Stafford Loans deferred. There is also an option for those who have gotten Perkins Loans for either payment deferment or partial cancellation of 15 percent of the loan for every year served up to 70 percent. The Peace Corps, headquartered in Washington DC, offers volunteers the chance to travel to other countries and do volunteer tasks that affect entire communities. Volunteers are usually given an initial service term of two years.
– Volunteers in Service to America, or VISTA, is another organization that offers student loans forgiveness. Volunteers are assigned to private NGOs that aid in the areas of poverty, illiteracy and other social concerns. Volunteers who have amassed a total of 1,700 hours of service will be given $4,725 for federal loan payments.
– AmeriCorps gives its volunteers $4,725 for use in loan payments, aside from stipends that can reach up to more than $7,000. Volunteers are usually asked to serve a full year to take advantage of federal loans forgiveness.
Students who have enlisted in the Army National Guard may qualify for the Student Loan Repayment Program. Qualified individuals are offered up to $10,000 for loan repayment. Military and veterans’ associations also have programs that provide tuition and scholarship assistance.
If a student who has an outstanding federal student loan becomes a full-time teacher in a school that has a majority of the student population in the low-income bracket, he or she can have part of his or her Perkins Loan condoned under The National Defense Education Act. Under this forgiveness exercise, 15% of the loan is forgiven for the first two years of teaching, 20% for the next two years and 30% for the fifth year. The student should contact his or her local education department office to check which elementary and secondary schools qualify as facilities that provide government loans forgiveness.
Other methods that lead to loans forgiveness include the following:
– Forgiveness for law enforcement students who work as State Troopers in the state of Alaska. 1/5 of the Michael Murphy Loan to study law-related fields is forgiven for every year of service.
– State and government employees of the state of Maryland who earn not more than $40,000 are eligible for either loan assistance or repayment for studies in the fields of social work, law, nursing, education, and physical and occupational therapy.
– Law schools also forgive student loans for those who serve in non-profit organizations and the government. Interested parties should contact Equal Justice Works and the American Bar Association.
The US Department of Health and Human Services, the US National Institutes of Health and the US Department of Agriculture also have different repayment programs for federal student loans forgiveness.