Student Loan Debt Forgiveness Programs

Do you ever wish that your student loans would get canceled and disappear?

Student loans can be a financial burden that may affect someone’s quality of life for many years. Trying to achieve those things in life that are important such as home ownership, marriage, children, and a rewarding career is made even more difficult when student loan repayment is part of the mix.

However, there are some new methods available that may help some people eliminate or reduce their student loan debt. Student loan forgiveness is available if you qualify.

In 2007, The Federal College Cost Reduction and Access Act established two programs designed to help borrowers discharge their student loans.

The first program is the Income-Based Repayment schedule which reduces monthly federal loan payments based on the borrower’s income. The second program is Public Service Loan Forgiveness, or student loan forgiveness.

Student loan forgiveness programs allow the federal government to cancel all or part of an educational loan. To qualify for this type of debt relief, a borrower must perform some type of volunteer work, perform military service, teach or practice medicine in specified areas, or meet other criteria specified by the forgiveness program.

The program forgives any remaining debt after ten years of full time employment in these specified fields. The borrower needs to have made 120 payments to obtain the benefits. Payments made prior to October 1, 2007 do not count as part of the 120 payments.

The most popular student loan forgiveness programs are those that seek teachers. Teachers are often needed in low income areas and to teach critical subjects such as math or science. They are also needed to teach early childhood programs and to work with disabled children. People who are interested in these areas of education are perfect candidates for student loan forgiveness.

Another field that is suffering a shortage of qualified people is nursing. Anyone who has outstanding federal student loans and is willing to work in a critical need health care facility should research loan forgiveness programs. Public service attorneys should also check into debt forgiveness programs.

Attorneys who have outstanding student loans, have paid on those loans for ten years, and who work in the public interest sector can apply to have their student loans forgiven. Public interest attorneys tend to make much less money than other attorneys. However, their work is critical in helping the poor and the disadvantaged and are being offered this helping hand by the government.

Student loan forgiveness is an important aid to those struggling to pay off their student loans and who are willing to seek employment in certain fields. These programs benefit both the students and the country by allowing the best and the brightest to work in fields that tend to offer lower pay but have the greatest need.