A Guide to Student Loan Forgiveness to Eliminate Debt
In this tough economic situation, most of the brilliant students are compelled to let go of their dreams of higher education. With the increase in the education costs like tuition fees, boarding expenses and stationary expenses, there are a huge number of students who are unable to cope up with their higher education. In the US, the parents who have college-going kids often take out student loan to help their children complete higher education. However, it’s really sad to see the pathetic situation when their children fail to manage the owed amount and incur staggering debt. This kind of scenario may continue unless they encourage their children to opt for scholarship than student loan for managing higher education expenses. If you aren’t aware of scholarship programs and wondering how it can help you and your children to lead a liability free life, then continue to know more.
Scholarship is a perfect option to manage your higher education costs. This is because when you qualify for a scholarship program, you’re not required to pay back the fund. You can search for scholarship online and it’s a better option than loan programs. Well, your scholarship application is applicable on the basis of many factors like your grade point average, test scores, special skills and interest. Here are some of the benefits of the scholarship program that you can consider:
1. Recognition: You’re recognized for your achievements
2. Distinguish your achievements: You stand out among your peers.
3. Financial aid: This is a reward program and you’re not required to pay it back.
4. Resume stand out: A scholarship program can help to make your resume stand out.
Well, the above mentioned points are a snippet to scholarship programs. But people who’re struggling to come out of the debt rut can apply for a student loan forgiveness program.
How to qualify for student loan forgiveness program?
Here are a few ways to qualify for a student loan forgiveness program when you participate in:
-Teaching profession or practice medicine in certain types of communities
A large portion of your debt will be erased when your application for loan forgiveness is approved. The money you’ll save after receiving forgiveness will not be treated as income.
A. Volunteer Work
The loan forgiveness programs offered by the volunteer organizations are as follows:
-Perform volunteer work with AmeriCorps: If you serve for AmeriCorps for a year, then you can receive up to $7400 as stipend, and additional $4725 can be used towards paying off your loan.
-Perform volunteer work with PeaceCorps: The volunteers may apply for deferment of Stafford, Perkins as well as Consolidation loans. Your Perkins Loans can be partially cancelled up to 15% for each year of service and near about 70% in total. The volunteers can bring a remarkable change in the lives of real people with two years of service.
If you are a student in the Army National Guard, then you may qualify for their Student Loan Repayment Program, which offers up to $10,000. The military and other veterans who are associated with the organization offers scholarship as well as tuition assistance programs for students.
Under the National Defense Education Act, a portion of your Perkins Loan can be forgiven only if you serve as a full-time teacher in an elementary or secondary school for students from low-income families. In first and second years of teaching service, this program forgives 15% of your loan. You can manage to get 20% to 30% loan forgiveness in the consecutive years.
D. Legal and Medical Studies
Some law schools offer loan forgiveness programs for their students serving in public interest or non-profit organizations. You can contact Equal Justice Works for more information regarding the loan forgiveness program.
Loan forgiveness programs are offered by the US Department of Health and Human Services through the National Health Service Corps and the Nursing Education Loan Repayment Program. The physicians and registered nurses can take benefit of this program. This program is offered particularly to those people who practice for a few specific years in areas that lack adequate medical care.The US National Institutes of Health’s NIH Loan Repayment Programs offers up to $35,000 each year to repay student loan debt, especially for those US citizens who are conducting clinical medical research.
Loan forgiveness program is offered by the US Department of Agriculture’s Veterinary Medicine Loan Repayment Program (VMLRP). If you are willing to work in a veterinary shortage area for three years, then you can receive $25,000 per year for 36 months.
What are the other options for loan forgiveness?
Students who take out a Michael Murphy Loan to study law enforcement, law, probation and parole or other related fields, can work off one-fifth each year to get enrolled in a federal student loan forgiveness program. Employees associated with the Maryland state and local government, earning less than $40,000 (gross annually) might be eligible for financial aid or repayment program to study law, nursing, physical and occupational therapy
What’s the complete information of federal government loan forgiveness programs?
People serving as full time teachers in elementary or secondary school for student from low-income families can manage to cancel Perkins loans and Stafford Loans. This facility is also bestowed on people appointed as special education teachers for teaching children with disabilities in a public school. The qualified professionals who offer services for the disabled, teach math, science, foreign languages, bilingual education or other fields designated as teacher shortage areas are the intended recipients for of these forgiveness programs.
However, other occupational groups including nurse or medical technician, law enforcement or corrections officer, staff member in the educational component of a Head Start Program, service as a part of Vista or Peace Corps Volunteer and other public servants are also eligible for these forgiveness programs. Over time, loan forgiveness and service payback programs have earned immense popularity. The federal government is extremely focused on the modification of loan forgiveness and service payback provisions in order to meet the requirements of the targeted group, job or region in the best possible manner. If you want to avoid financial liabilities, then you can opt for scholarship program.