Federal student
loans always have to be paid back. The loan program requires repayment after
graduation or six months after the borrower is no longer attending college.
These loans have
varying repayment options, including deferring payments if the borrower is
unemployed or underemployed.
Student loan
forgiveness offers a few options to the borrower to give them the opportunity
to have part or all of their loans forgiven under certain circumstances.
Volunteer Work:
The federal
government allows a borrower to volunteer with three different organizations
for a partial and up to total loan forgiveness. Volunteer with Americorps for
12 months and receive up to $4725.00 for loan repayment.
Peace Corp
volunteers will be granted loan repayment in differing amounts depending on
length of service. Fifteen percent of the loan total is forgiven for each year
of volunteer status with a maximum amount forgiven of 70 percent.
VISTA offers the
borrower a chance to volunteer and receive a partial student loan forgiveness.
Volunteer 1700 hours through VISTA and receive $4725.00 for loan repayment.
Military Service:
Student borrowers
have the opportunity to join the Army National Guard and receive up to $10,000
for educational loan payments depending on length of military service.
Teachers:
Borrowers that
become teachers in schools that have a certain population of low income
students may be eligible to receive forgiveness of their Perkins loans. The
National Defense Education Act allows teachers to have loans forgiven at a rate
of 15 percent of the loan for each of the first two years of teaching and
twenty percent in years three and four. Thirty percent of the loan is forgiven
in the fifth year.
Teacher's in
Mississippi that hold an alternate route teaching license and are employed in
schools with a teacher shortage may be qualified to utilize the teacher loan
repayment plan.
Legal and Medical
Studies:
Law school loan
borrowers who work in non profit or public interest law positions may be
eligible for student loan forgiveness. The US Department of Health and Human
Services has a program for doctors and nurses who practice medicine in areas
that do not have access to proper medical care. Federal loan borrowers should
contact the American Association of Medical Colleges (AAMC) for a listing of
all medical student loan forgiveness options.
Law Enforcement:
Alaska offers
educational loan repayment to those who were granted a Michael Murphy Loan.
Student borrowers whose field of study was probation, law, parole, penology, or
another related field of study have the eligibility to receive loan
forgiveness, at the rate of 20 percent a year, if they are employed as an
Alaska State Trooper.
All of these
programs are a fantastic way to serve your state or country and have the
ability of receiving a forgiven loan. People who are interested in public
sector work should definitely take advantage of one of these options.
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