How to Receive Student Loan Debt Forgiveness
The Federal College Cost Reduction and Access Act was passed in 2007 so as to ease the mounting financial burden on recent graduates as well as current students of the school brought about by the exorbitantly high educational loans taken by students.
If you qualify the student loan debt forgiveness criteria, your debt might as well be reduced to its half. People seeking debt forgiveness, be it students or graduates, might be asked to take up certain careers and provide their assistance as and when required. This will actually help them to clean off some portion of the debt created by student loans.
Debt Forgiveness for Working Professionals
Student loan forgiveness is given for specific careers like that of a nurse, doctor or even a teacher. Some of the college loan costs are forgiven when a graduate in a degree of education or nursing starts working. Special loan forgiveness is offered to teachers who agree to work in a low income frame or teaching handicapped children, types of jobs for which finding a voluntary staff is extremely difficult. Nurses who don’t mind working in critical care units can also avail the benefits of forgiveness programs.
Income-based repayment programs are very popular among graduates or students who’re not able to meet the standard repayment schedule due to lack of financial support. Such income-based schedules reduce the monthly payments in accordance with the income of the graduate. In a few years the student loan debt may even be completely wiped off the charts, if not the remaining balance maybe forgiven completely. But in most cases of debt forgiveness, monthly payments are reduced and stretched over a longer time period so that the borrower can comfortably pay off the debt.
Loan forgiveness for students pursuing specific types of public service follows a different criterion as set by the Federal Government. This criterion involves complete forgiveness of student loan debt for graduates who join military after college. For people indulging in work with the non-profit organizations, payments are reduced a great deal. For graduates working for a minimum of 10 years with an eligible public sector company will have their remaining debt forgiven and wiped off by the Federal government. Graduates spending valuable time in research labs can also enjoy certain benefits of loan forgiveness if at all they’ve applied for any. Though their debt will not suddenly be wiped out, the students will benefit from the debt forgiveness by making atleast 120 payments in total.
Now let us look at some careers elaborately, required for meeting the criterion for the debt forgiveness programs:
Debt Forgiveness By Careers
- AmeriCorps and Peace Corps: If you plan to work in AmeriCorps, you’ll be receiving a salary of upto $7400 after working for a year. Moreover, a sum worth $4725 will be received a year for loan repayment. If a student plans to work in the Peace Corps, he/she will get a 15% wipe off of the Perkins loan for each servicing year to the Peace Corps. Following this way, you will earn some money, do your bit of public service and also wipe away certain portions of your debt.
- Military Service: All students enrolled in the Army National Guard are entitled to receive their Student Loan Repayment Program individually which provides them with a sum of $10,000.
- Teaching: Another kind of a Student’s Loan Debt Forgiveness Program, teaching in low income schools or teaching “special” children benefit the graduates with an educational degree in a way that they are provided with 15% of their student loan for the first 2 years of teaching, 20% for the third and fourth year and finally, 30% for the fifth year.
- Nursing and medical career: If you took up med school, you’ll be possibly qualified for a student loan debt forgiveness program, all thanks to the Nursing Education Loan Repayment Program. Again, the help provided will depend on how many years of service you rendered.
- Legal Study: Certain student loan debt forgiveness programs have been offered by the American Bar Association and the Equal Justice Works. Law students like medical students are provided with an offer for forgiveness or total cancellation of their debt. Some of the student’s loans can be totally wiped off if they work for a specified number of years. Moreover, graduates can even have their debt forgiven by offering an important community service by working directly for the community and meanwhile earn a small salary as well.
Debt Forgiveness for Sallie Mae Student Loans
Sallie Mae has its own student loan forgiveness program for which students have to meet certain eligibility criteria. Their student’s loan with Sallie Mae should’ve been initiated after the 30th of June, 1985 and before 1st July 2009 and should be met with the certain points:
- The student absolutely cannot be a part of any other qualified institution
- The student’s loan should have a respectable standing.
- The student’s loan debt must not exceed beyond $100,00
Solely focused on promoting the well being of its students, Sallie Mae believes that by incorporating student loan forgiving programs and also the reduced monthly payments, it’ll help to boost the economy. According to Sallie Mae, by forgiving student loan debt, every student will help injecting into the economy some considerable amount of money by way of purchasing flat screens, ipads, mobile phones and other gadgets. Strange, but true!
Sallie Mae also has its own debt forgiveness clause in the wake of the borrower’s death and bankruptcy. By following a strict procedure of making student entries into its student loan debt forgiveness programs by way of application procedure, which can be downloaded and filled easily.