You’ve just graduated college only to find your annoying friend, student loan debt, right there waiting for you. This is the type of friend you don’t want hanging around for long. Luckily, there are several programs that assist freshly capped minds by forgiving student debt. Applied to federal loans, each program has qualifications you need to meet in order to receive assistance. You should also keep in mind that any loan, such as a bank educational loan, that is not eligible for loan consolidation does not qualify for federal programs forgiving student debt.
Forgiving Student Loan Debt for Teachers
You could enroll in a program that forgives student debt for teachers that apply to teach in elementary or secondary schools in low-income areas. In order to qualify, you must make a five-year commitment. You should also know that the forgiven amount is counted as taxable income in most cases.
Forgiving Student Loan Debt for Public Service Workers
The requirement for forgiving debt for public service workers is different from other programs. In order to qualify for this, you must work for at least 10 years before the loan is forgiven. During those 10 years, you have to make at least 120 current loan payments.
Forgiving Student Loan Debt for Volunteers
Students who decide to volunteer with AmeriCorps or the Peace Corps are also eligible for programs that forgive the debt. Only specific loans are eligible for forgiveness under each program, though. Depending on the type of service and time served, the student may also qualify for a stipend.
Forgiving Student Loan Debt for Military Service
Each military branch has a uniquely tailored program for forgiving debt for students. For example, in the Army, a certain portion of the debt is repaid for every year served after basic training. However, the Navy requires the recruit to make a minimum passing score on the ASVAB and must not be commissioned as an officer. Although the money is paid directly to the loan provider, it is counted as taxable income for the student.