Do You Qualify For A Student Loan Forgiveness Program

Students who take certain public service jobs and who have high debt and low income may qualify for student loan forgiveness under a number of federal student loan forgiveness programs. This type of student loan forgiveness is all or nothing. If the borrower stops working full-time in a qualified public service job, they owe all the debt again, even if there are only a few payments left.
Teachers may qualify for student loan forgiveness if they teach full-time for five academic years in schools that serve low-income families and meet other qualifications. This student loan forgiveness program forgives up to $17,500 in principal and interest. Students who took out a Stafford loan on or after October 1, 1998 may be eligible for this form of student loan forgiveness.Students who have Perkins loans may be eligible for student loan forgiveness if they work full-time as a teacher in schools serving low income families, as a special education teacher, as a qualified provider of early intervention services, as a teacher in math, foreign languages, science, bilingual education or other areas in which there is a teacher shortage. Student loan forgiveness is also available to employees of public or non-profit child and family service agencies serving high-risk children and families, nurses, medical technicians, law enforcement or corrections officers, and staff members of Head Start.
There are other circumstances for student loan forgiveness or cancellation for borrowers who perform military service, perform volunteer work, or practice medicine or law in low income communities, and meet other specifics under the appropriate student loan forgiveness program. Students in the Army National Guard may be eligible for up to $10,000 in student loan forgiveness.
Volunteer work programs under which borrowers may qualify for student loan forgiveness are as follows:
1. Ameri Corps, 12 months service, $7,400 stipend and $4725 towards student loan forgiveness
2. Peace Corps, deferment and partial cancellation of Stafford, Perkins, or consolidation loans at a rate of 15% for each year of service.
3. Volunteers in Service to America, 1,700 hours of service may qualify for $4725 in student loan forgivenessSeveral law schools offer student loan forgiveness for students who serve in public interest or non-profit sectors.
The National Health Service Corps offers student loan forgiveness for medical students who practice a set number of years in areas with few health care resources. Some private healthcare facilities and hospitals offer student loan forgiveness to occupational and physical therapists.Students who have a Michael Murphy Loan to study law, law enforcement, probation and parole, and other related fields may work off 20% of their loan per year by working as a State Trooper or related law enforcement official in Alaska.
In Maryland, state and local government employees earning less than $40,000 gross annual may be eligible for student loan forgiveness in the form of loan assistance or repayment if they study law, nursing, physical and occupational therapy, social work, or education.After 10 years full-time employment in public service and 120 payments as part of the Direct Loan program, employees may be eligible for student loan forgiveness of the remaining principal and interest. Student loan forgiveness is not taxable under section 108(f) of the code of the Internal Revenue Service.