Closed school discharge Georgia
Diverse Ways to Get Forgiveness for Student Loans in 2017

Blog

line-1
  • Mellisa William
  • 352
  • Friday, February 10, 2017
Forgiveness for Student Loans

In accordance with the recent survey, over 7 million student loan borrowers are approx. 12 months behind on their payments. Well, this number is huge and such situation can easily lead to costly consequences down the line.

Luckily, Student Loan Forgiveness Programs can provide the cash-strapped students with a genuine way out. By approving to abide by a specific career role or fulfill other conditions, you can secure complete or fractional forgiveness of your loans after a determined time period.

So, following are the top ways to attain forgiveness on your student loans in 2017.

  • Serve in Public Sector

Under Federal Public Service Loan Forgiveness (PSLF) student loan forgiveness is provided after you work in a qualified position in the public sector and have successfully made 120 qualifying payments. Qualifying jobs usually include government positions at the federal, state or local level, not-for-profits, and the jobs which offer specific types of qualifying public services.

PSLF is an ideal option for the borrowers who have a clear agenda of being in a public service and want their loans to be forgiven after a decade, regardless of their earnings.

  • Opt for an Income-driven Repayment Plan

For those borrowers who do meet particular income guidelines, the income-driven plan is a great option to consider. These programs include: Pay As You Earn (PAYE), Income-Based Repayment (IBR), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR).

These plans need you to divide over 10-20 percent of your discretionary income for a timeframe of 20-25 years, but this leads to complete loan forgiveness.

  • Volunteer

There are several volunteer opportunities that provide much more than a chance to give back to the society, they offer student loan forgiveness as well.

For instance, opting AmeriCorps for volunteering could mean marking as much as $5,700 off from your loans, according to the year and the program where you offer service. Whereas, SponsorChange.org recommends volunteers with non-profits that are ready to repay their student loans in return for work.

These volunteer opportunities are perfect for those people who want to contribute something to the society while earning some extra money to repay or get their complete loan forgiven.

  • Join the Military

Students who look forward to getting through college with nominal debt have this option of joining the military once they graduate. Some of the U.S. military divisions provide loan forgiveness programs, with the Army and Navy paying the maximum amount permitted by law for active duty deployments.

If the full-time military isn’t your flair, then you can go for the National Guard and get partial or total repayment on your loan after 6 years of service.

As choosing the military isn’t everyone’s cake to eat, making money for college is a keen move for anyone who wants to attain a degree while offering vital service to their country.

  • Get your Perkins Loans Annulled and Discharged

Federal Perkins Loans can be forgiven of those students whose careers meet certain criteria post-graduation. For qualifying, you need to serve in fixed qualifying professions that fulfill a public need like serving in the armed forces, working at particular healthcare positions, or finding qualifying work in a plethora of careers that include all from librarian to attorney.

Termination of Federal Perkins Loans is an ultimate option for anyone who doesn’t mind working in high-need professions.

  • Go for Employment-based Forgiveness

You could qualify for some special student loan forgiveness options which are not available for everyone, but this completely depends on your profession. These different employment-based forgiveness programs include:

  • Health Professionals Loan Repayment Program – In this program, a healthcare professional serving in the military can repay up to $50,000 in loans per year of service. 

  • NIH Loan Repayment Program – This program assists doctors who fulfill specific career guidelines and eligibility requirements earn up to $35,000 in the form of student loan repayment.

  • Equal Justice Works – In this service, a network of law schools for loan repayment assistance programs are offered specifically for lawyers.

  • Teacher Loan Forgiveness – This program helps those teachers who serve in qualified elementary or secondary schools at low-income for five successive years or longer.

  • Check with your State

A myriad of loan forgiveness programs are also being formed on the state level. Typically for doctors, teachers, lawyers, and those who serve in the state programs, public sector, vary by kind and scope of forgiveness.

The Bottom Line

Even though these programs usually demand some sacrifice on your part, but they can be helpful to overcome any college-fueled financial crisis – complete forgiveness of your loans.

It is important to always understand the commitment involved first. You might want to avoid the idea of making your loans repayments the hard way, but choosing the wrong program for loan forgiveness could trigger that spark.

This is the reason why you should always consult an expert before making any choice regarding the loan forgiveness programs. This can go a long way towards ensuring you find a program that perfectly fits your goals as well as lifestyle.

Don’t let student loan debt hold you back!

Request a free consultation today