Certain Qualifications Can Achieve Student Loan Forgiveness

Posted on November 29, 2008
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In the vast majority of cases, individuals who decide to take out student loan services in order to pay for the expenses the incur while getting their college education will have to start making payments on those loans six months are they have graduated from college.  Even though there are some ways to qualify for student loan forgiveness, this is not like asking for forgiveness from your mother when you were a kid.  In order to qualify for student loan forgiveness you will have to meet some rather stringent requirements. 

Government funded education loans can be forgiven in whole or in part by participating in military service, volunteering, doing legal or medical work, or teaching.  For example, volunteering with AmeriCorps will reduce your federal student loan debt by $4,725.  This program will also provide you with money for living expenses during your time away.  Working with the Peace Corps also reduces your federal student loans by 15% for each year of volunteer work completed.

When individuals who volunteer with Volunteers in Service to America (VISTA) complete 1,700 hours of volunteer work with the poor their federal student loans will be reduced by $4,725.  Military service also affords people with certain amounts of forgiveness to their student loans.

Providing Services Where It Is Most Needed

Many low-income communities have trouble finding qualified teachers to fill their schools and student loan forgiveness for government loans are available for new teachers will to teach in certain schools. Most of these programs offer a 15 percent reduction in the amount of the loan in the first and second year teaching in a qualified school.

During the third and fourth years of teaching in the same areas, 20% will be forgiven, followed by 30% in the fifth year of teaching.  That means that if a new teacher works in a qualifying school for five years, he or she can reduce their student loan debt by up to 85%.

When students who have studied law or medicine agree to work with poor individuals or in poor communities they can also receive forgiveness on their student loans from the schools they attend.  This work also brings them great work experience.

Federal student loan consolidation is a viable option for people who are not eligible for any of the above mentioned forgiveness programs.  Government consolidation of several different student loans often makes monthly payments lower.

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