If you want to learn about student loan forgiveness, then you will want to read this article. Specifically, we will discuss what student loan forgiveness is, who it can help and how to qualify. After reading this article, you should be able to determine if student loan forgiveness is an option for you!
Student loan forgiveness when into effect in October of 2007 under the College Cost Reduction and Access Act. It allows for the cancellation of the remaining balance of student loans after 120 consecutive payments if certain conditions are met. Loans that are eligible for cancellation under this program are those made under the Direct Loan Program or loans that were made under other programs and then consolidated under the Direct Loan Program.
This program isn’t for everyone! Only people that work in public services can qualify. You must have worked in public service for the entire 10 years and still be employed at the time of your loan forgiveness.
Because the term of a student loan is normally 120 months, student loan forgiveness will only help those who have qualified for a reduced payment schedule. You must have a low enough income and high enough debt level to qualify for either income contingent or income based repayment for student loans. You need to be current on your student loan payments as well. If your loan is in default, you do not qualify for forgiveness.
So, what qualifies as a public service job? Some examples include: government, military, public interest law, emergency management, policemen, firemen, public health, public education, public child care and public library.
Student loan forgiveness is designed to reward those who dedicate their lives to public service. If you qualify and still have a balance on your student loans after 120 monthly payments, it is certainly a program worth looking into.
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