Student loan debt can place a heavy load on young home owners and/or would-be homebuyers. In order to navigate the sea of student loan debt, it helps to understand what type(s) of loans you have and the options available.
|GOVERNMENT LOANS||PRIVATE LOANS||NOTES|
|Interest rates generally lower & fixed||Interest rates usually higher and variable||FSA Login|
|Potential debt forgiveness for teaching, military & other public service work||Very rare – no debt forgiveness in extenuating circumstances||FSA Login|
Student Loan Forgiveness
While you may have heard that there is no such thing as student loan forgiveness, that’s not exactly correct. There are some situations in which student loan debt can be forgiven or payments delayed. The following Q & A’s may help:
Question: My student loan debt is enormous, and I can’t manage it anymore. I’ve heard about student loan forgiveness programs, but I don’t really understand them. How can I use a loan forgiveness program to my advantage?
Answer: Student loan forgiveness programs entail effort and time. In addition, you must meet strict requirements to take advantage of them. However, if you’re drowning in student loan debt, forgiveness programs offer a way out.
Reasons for student loan forgiveness:
Total and permanent disability discharge. If you have federal loans, they can be forgiven under the total and permanent disability discharge rules.
- Total and permanent disability discharge. If you have federal loans, they can be forgiven under the total and permanent disability discharge rules. To qualify for this forgiveness program, you must submit proof of your disability. You must also submit certification from a doctor that shows you’re unable to work and can’t pay off the debt.
- Teacher loan forgiveness. If you’re a teacher in a qualified area that is a high-needs school district, then your loan may be forgiven.
- You must be a full-time teacher in a school that qualifies for the program.
- You must teach for at least 5 years before your loans can be forgiven. However, some types of federal loans don’t qualify for this program.
3. Public service loan forgiveness. If you work in a qualifying public service job and have made steady loan payments, then you may qualify for forgiveness.
- Certain types of federal loans can be forgiven for firefighters, nurses, EMTs, medical technicians, and law enforcement officers. You’ll have to show proof of ongoing employment in these categories.
- If you join the AmeriCorps VISTA or the Peace Corps as a volunteer, you may also get loan forgiveness. However, it may only be 70 percent of your total loan amount.
- Child and family services workers may also qualify for loan forgiveness.
4. Employer pays your loan. More and more employers are beginning to offer this perk to their employees. Check with your employer to see if this is possible at your job. If you’re in the market for a new job, remember to include this benefit in your negotiations.
You don’t have to suffer under the burden of unbearable student loans. There are forgiveness programs that you can use to eliminate your loans.
School Links & Resources
- Bibliography Search Tool: https://nces.ed.gov/bibliography/
- Career Options/Choices: https://www.bls.gov/oco
- Checklists for Academic & Financial Preparation: https://studentaid.ed.gov/sa/prepare-for-college/checklists#checklists
- College Application Info: https://studentaid.ed.gov/sa/prepare-for-college/applying
- College Costs: https://collegecost.ed.gov
- College Preparation: https://studentaid.ed.gov/sa/prepare-for-college
- Fast Educational Facts: https://nces.ed.gov/fastfacts/index.asp?faq=FFOption6#faqFFOption6
- Federal Student Aid: https://fafsa.ed.gov
• Grants: https://studentaid.ed.gov/sa/types/grants-scholarships
• Loans: https://studentaid.ed.gov/sa/types/loans
- National Center For Educational Statistics: https://nces.ed.gov/collegenavigator
Private School Search: https://nces.ed.gov/surveys/pss/privateschoolsearch/
- Public School Search: https://nces.ed.gov/ccd/districtsearch/
- Repayment Plans: https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven
- Scholarships: https://studentaid.ed.gov/sa/types/grants-scholarships/finding-scholarships
- Student Loan/Debt Forgiveness: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation
- Work-Study: https://studentaid.ed.gov/sa/types/work-study
- Veterans/Service Members Educational Info: https://nces.ed.gov/statprog/outcomemeasures/
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