The federal government will cancel all or a portion of a student loan under some circumstances. This is called loan forgiveness and there are some things that you could do to qualify. The careers with low salaries as well as the ones that need you to pay a large sum of money to pursue it are the ones that led to the creation of the loan forgiveness programs. The forgiveness programs will need the student to work for a number of years in the occupation to pay off the loan.
Student loan forgiveness can be received through volunteer work. There are stipends that the organizations you are going to volunteer with will pay and these will go towards repaying the loan. The organizations that are eligible are the ones that make a real difference in the lives of other people. The main activities of these organizations should include eradicating homelessness, poverty, and hunger.
You will be eligible to get up to a maximum of $ 10000 if you are in the Army National Guard as part of the loan forgiveness program. The military and veterans’ associations offer scholarships as well as tuition assistance programs for the students that join them. The other way you can get student loan forgiveness is by volunteering to teach. A portion of the loan will be forgiven if the student offers to give a full-time teaching service to an elementary or secondary school that is helping the poor people. For the teaching staff to enjoy loan forgiveness, the federation of teachers has maintained a list of programs that the teachers can undertake.
The law students that offer to do volunteer work in public interest or non-profit positions are usually eligible for loan forgiveness. The programs that are available for the student lawyers as well as what they need to do for eligibility will be provided by the bar association.
You need to properly understand what you are required to do before you commit to any of the programs that are mentioned above. This is because once you choose a loan forgiveness program; you should be able to make all the payments according to the program rules. The loan officer should be contacted so that you are aware of all the options that you have available.
The student loan forgiveness programs are put into 2 groups. The two types include the up-front and back-end programs. You will be cancelling the debt with each year of service if you choose the up-front program. The back-end programs on the other hand cancel the remaining debt after a number of years of service.