Student Loan Forgiveness Tips

Many people feel like they can’t get from under their student loan debt. Well, the good news for these former students that they may not have known is that they can get these loans forgiven. This past year, the Consumer Financial Protection Bureau released a study that found that 25 percent of Americans remain eligible for the Public Service Loan Forgiveness program. However, very few people take advantage of this opportunity.

These loan programs seem like they stay in hiding, but this isn’t the case. If a person wants their student loans to go far, far away, they can do so in one of five ways.

Forgiveness for Health Care Workers

Forgiveness for Health Care Workers Doctors and nurses can have a large portion of their loans forgiven. For example, nurses and physicians that serve in the military can get up to $50,000 of their loans forgiven. Dentists that work in certain underserved sections of Maine can get up to $20,000 of their student debt forgiven.

Canceling and Discharging Perkins Loans People who took out a Perkins loans and work in certain careers can have all of their student debt erased after five years. Every Perkins loan borrower can become eligible for loan discharge and cancellation. For military members who served in a hazardous pay area before August of 2008, they can have up to half of their loans forgiven. A person in the military who served after that date can get all of their loans discharged. Law enforcement personnel can also become eligible for 100 percent loan cancellation. Attorneys that work as public defenders or practice in an underserved area can also get 100 percent loan forgiveness. Special education teachers, teachers of some subjects, and educators that work in low- income areas can get all of their federal loans forgiven. A person that works as a speech pathologist or a librarian in a Title I school could also become eligible for total loan forgiveness.

Loan Programs for Teachers

Loan Programs for Teachers A teacher who works full-time for five years in certain schools can have up to $5,000 of their Direct and Stafford loans discharged. High school teachers who teach science and math, as well as special education teachers, can have up to $17,500 of their Direct and Stafford loans discharged.

Loan Programs for Volunteering

Loan Programs for Volunteering VISTA (Volunteers in Service to America) and AmeriCorps volunteers can suspend their loan payments for the duration of their service. Some volunteers could also qualify for the Public Service Loan Forgiveness Program. Peace Corps volunteer gets forbearance of their loan payments for the length of their service. They also get $8,000 of a readjustment allowance and get a portion of their loans forgiven.

Permanent Disability Discharge

Permanent Disability Discharge Military veterans can get their loans discharged if the US Department of Veterans Affairs determines that the person in question can’t work due to an injury they sustained on active duty. People who receive Social Security Disability Insurance (SSDI) or Social Security Income (SSI) can also get their loans discharged under certain circumstances. A person with a physical and mental disability can get their loans forgiven if a physician determines that their disability keeps them from working.