Loan Cancellation: Is It An Option For You?
Student loans are pretty much a necessity these days, especially if you or your family has an income that would be deemed “middle class.” This means that you do not show exceptional need for financial aid, but paying tuition out of pocket isn’t exactly an option, either.
So when you end up taking out student loans, you’re kind of stuck. You can’t afford to pay tuition straight out, but you don’t qualify for grants, either. And once it comes time to start making payments on your loans, that isn’t going to be so easy on your budget, either. However, if you plan on becoming a teacher after you graduate, there may be hope for your student loans yet.
What is Student Loan Cancellation?
Student loan cancellation is pretty much exactly what it sounds like. It is a method of canceling your student loans for good, meaning after the point of cancellation, you might as well have paid off the loan with cash. It’s a really great option if you can get it.
When Can I Get My Student Loans Cancelled?
Basically, you can qualify for having your student loans cancelled if you are a full-time teacher that has opted to teach at a school in a low income area and you yourself have a somewhat low income. However, just because you fit these attributes does not mean you will get a cancellation.
If you have a Federal Perkins Loan, the following information is for you. You will have needed to teach full-time at a low-income school or a special education teacher of students with disabilities or a teacher that teaches classes in a certain subject that does not have enough teachers in your state. You will need to find out the specifics, however, as there may be other stipulations that could prevent you from qualifying for a complete loan cancellation.
If you have a Federal Stafford Loan, the following information is for you. You will need to have taught five years consecutively at a low-income school in order to qualify for a loan cancellation. The school you teach at must also be either public or a non-profit private school. This program is not exactly loan cancellation, as there is a financial limit as to how much of a loan can be forgiven. At the moment $5,000 is the ceiling. However, if you teach in certain subject areas such as math, science or special education, you may qualify for up to $17,500 worth of loan forgiveness.
Why Should I Try To Get My Student Loans Cancelled?
The question should really be why not? I mean, who doesn’t want to have their loans forgiven? If you qualify for it, then really, why not? You will have only paid a few years worth of the loan yourself and then it will be gone in the blink of an eye. It doesn’t get much better than that if you think about it. I mean, so much of the stress involved with getting a student loan is the repayment plan and whether or not it will fit into your budget post graduation. But if you can get the loan cancelled, that takes away the burden big time and then you can focus on saving your money for moving your life forward, such as making a down payment on a house, paying off your other debts or traveling. Regardless of what you decide to do, purposefully choosing to teach in a needy area can come with benefits. Why not take advantage of these benefits?