Getting Rid of All Your Debts: The Process of Loan Forgiveness
What’s the first thing you think of when you hear the phrase, “loan forgiveness?” Something to do with being pardoned for a loan or something of that nature, right? However, do you know exactly what it means?
Many college students have never even heard of loan forgiveness, let alone know what it means. But it really is a process you should familiarize yourself with. Loan forgiveness could be your ticket out of some serious debt, though it won’t come without a price. Let’s venture into some defining terms first and once you have a good idea of what loan forgiveness is, you can decide for yourself whether or not this is something you’d be interested in.
What Is Loan Forgiveness?
Basically, loan forgiveness is a process wherein the federal government cancels a portion or the entirety of a student loan. However, there are certain things you will need to do in order to qualify for loan forgiveness. The two primary ways in which you can have your loan forgiven is to complete volunteer work or to sign up for the military.
Loan Forgiveness Through Volunteerism
There are many different ways in which you can volunteer and have your loans forgiven at the same time. These volunteer opportunities are usually community service based wherein you will be serving the greater good of the surrounding community with your time and efforts. Examples of some volunteer groups that participate in loan forgiveness programs include the Americorps, the Peace Corps and VISTA.
Loan Forgiveness Through Military Service
Another way in which you can have your student loans forgiven is to join the military. In fact, the Army National Guard has a Student Loan Repayment Program, which helps eligible candidates repay their loans without hassle. Other factions of the military also offer loan forgiveness programs, so be sure to do your research on finding the appropriate program for you or to see if you even qualify.
Other Methods of Obtaining Loan Forgiveness
Besides the above two methods, there are still many other ways that you can obtain loan forgiveness. For instance, if you want to become a teacher, you may very well have your student loans forgiven if you end up teaching in a low-income area. This only applies to teachers that have taken out a Federal Perkins Loan, however and a portion of your loan will be forgiven for each year you serve as a teacher in that area.
Another means of getting loan forgiveness is if you serve the public with your law degree or your medical degree. For instance, if you serve as a public defender, your loans may be cancelled. The same goes if you are a doctor and practice in an area that is known for having sub-standard medical care.
If you are pursuing any sort of medical field, there is more often than not a loan forgiveness program you can utilize. For instance, if you are a physical therapist, the American Physical Therapy Association may be able to assist you in locating a facility at which you can work that uses loan forgiveness.
Additionally, if you have a federal loan and you decide to be a teacher, you may very well be able to have your loan cancelled if you work at a specified school. But regardless of your chosen profession, be sure to always investigate your options. It would certainly be a shame to be several years into your loan repayment plan to find out you may have been able to have your loan forgiven!