Student Loan Forgiveness… Say What??
Contrary to the popular belief held by many a broke college student, there are ways to lessen the student loan debt.
While the Apocalypse is a pretty sure fire way to get out of paying the mountain of student loans, there are other ways to have your student loans forgiven that don’t involve the end of the world as we know it.
US News and World Report reports that the average college graduate in 2014 graduated with approximately $29,000 in student loan debt. In keeping with the current trend of student loans, that number can be expected to increase in the future. With this in mind, there are options for Federal student loan forgiveness if certain requirements are met.
The Teacher Loan Forgiveness Program allows for teachers in low income elementary or secondary schools who have been teaching for at least five years to have their Direct Loans decreased by an amount up to $17,500.
The Public Service Loan Forgiveness Program allows for full-time employees of jobs at any government level (federal, state, local, or tribal) or employees in not-for-profit organizations who have made 120 payments of their Direct Loans to receive partial or total loan forgiveness.
The Perkins Loan Cancellation Program allows for part or all of your Perkins Loans to be cancelled if you are employed in certain occupations, including, but not limited to:
— PeaceCorps volunteer
— US Armed Forces
— Law enforcement
— Nurse or medical technician
For each year in one of these occupations, the loan forgiveness recipient has the potential to have a certain percentage of their Perkins Loan cancelled depending on the service performed.
In order to have your Perkins Loan cancelled, contact your school to see if you qualify. Other loan cancellations can be requested by visiting your loan servicer.
To find out more about your loan servicer, visit https://studentaid.ed.gov/sa/repay-loans/understand/servicers .
To find out more about student loan cancellation, visit https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation#perkins-loan .
Written by the Finance Wizard