How to Achieve Student Loan Forgiveness

According to FinAid.org, the average graduating college senior will have owe $23,186 in student loan debt. To avoid the trap of student loan debt you have the options of paying down your student loan debt fully or getting your student loan forgiven. Since student loan debt is not bankruptable, it is one of the most important debts you will ever have to pay back.

There are a few distinct cases in which the government will forgive your student loan debt and one way is through “Loan Forgiveness” programs that have very strict requirements and circumstances to qualify.

Military

Student loan forgiveness can be achieved by becoming a member of the Army National Guard. Students that want to receive student loan forgiveness could be eligible to receive up to $10,000 under the Army National Guard’s Student Loan Repayment Program.

Although the Army National Guard is the only branch that currently offers student loans through a student loan forgiveness program, there are other programs available from other branches of the military that provide tuition scholarships and assistance.

Volunteering

There are a few organizations that will allow you to volunteer to work down your student loan debt, which is both beneficial to you and those receiving your help.

Organizations like Americorps, Peacecorps, and the Volunteers of Service to America program each help you earn a stipend or a partial loan cancellation that will reduce your student loan balance. Each program has varying eligibility requirements and provide different amounts of financial assistance.

Teaching

Becoming a full-time teacher that serves students in elementary or secondary schools from low-income families can help you get a portion of your “Perkins Student Loan” forgiven under the National Defense Education Act. As a teacher, you can receive up to a 30% loan forgiveness for five years of service as a teacher in a qualifying school.

The “Teacher Loan Repayment Program” is available specifically to teachers who currently have their Alternate Route Teaching License and teach in a shortage area in the state of Mississippi. Qualifying teachers can apply and get more details at the Mississippi Office of State Student Financial Aid web site.

Legal Studies

There are numerous programs available to law students who choose to serve in public interest or non-profit positions via the various Loan Repayment Assistance Programs (LRAPs) that are offered by different law schools and state programs around the country. Loan Repayment Assistance Programs provide aid to law school graduates who choose to work in the public interest sector, government, or other low-paying legal fields. According to the Equal Justice Works database, there are currently over 133 LRAP available to students. To receive assistance, students must complete an application for a particular LRAP by visiting the Equal Justice Works List of Law School LRAP list.

Medical Studies

The National Health Service Corps and the Nursing Education Loan Repayment Program are programs available to both physicians and nurses that practice in areas that usually lack adequate health care. The Veterinary Medicine Loan Repayment Program (VMLRP) provided by the US Department of Agriculture offers $25,000 for three years of service to veterinarians that opt to work in a veterinary shortage area.

Hospitals and private health care facilities looking to recruit occupational and physical therapists provide their own programs and are listed on the American Occupational Therapy Association and American Physical Therapy Association loan forgiveness web pages.

References:

American Federation of Teachers: Funding Database http://www.aft.org/yourwork/tools4teachers/fundingdatabase/

Equal Justice Works: Law School Loan Repayment http://www.equaljusticeworks.org/resources/student-debt-relief/law-school-loan-repayment-assistance-programs

Mississippi Student Aid Office: Mississippi State Student Financial Aid: www.ihl.state.ms.us

Equal Justice Works: List of Law School LRAPS http://www.equaljusticeworks.org/resources/student-debt-relief/law-school-lraps/list-law-school-lraps

USDA: Veterinarian Medicine Loan Repayment http://www.nifa.usda.gov/vmlrp

American Occupational Therapy Association: Loan Forgiveness http://www.aota.org/Students/Aid/Loan-Forgiveness.aspx

American Physical Therapy Association: Scholarship and Awards http://www.apta.org/CurrentStudents/ScholarshipsAwards/