Student Loan Forgiveness

With the rising costs to attend college and graduate programs, many students emerge from college and graduate school with a diploma and huge student loan debt. Due to this debt, many graduates choose to go into more lucrative private sector positions, with higher salaries, so they can repay their student loans. Many student loan debt forgiveness programs now exist to encourage graduates to work in the public sector.

Teachers Can Receive Up to $17,500 Through Loan Forgiveness Program

Up to $17,500 in principal and interest may be forgiven for Direct Program or FFEL loans. To qualify for the program, borrowers must hold a full-time teaching position and complete five academic years of service. Only teaching positions at certain low-income elementary or secondary schools may participate. Highly qualified math or science teachers at secondary schools qualify for the highest forgiveness amounts available. Skilled special education teachers receive higher amounts as well.

Those who receive benefits through the AmeriCorps program for the same years of teaching service do not qualify for the Teacher Loan Forgiveness Program. Borrowers with an outstanding balance on other student loans will not be eligible. During the five years before teachers qualify, student loan payments must be paid.

Public Service Employees Qualify for Loan Forgiveness After 10 Years On The Job

Eligible participants must work full time in a public service job. Some of the positions eligible for this program include: military service, police officer, firefighter, early childhood education teacher (Head Start and low income preschool programs), social worker in a public child or family service agency, public interest lawyer and public librarian.

Qualifying loans include subsidized and unsubsidized Stafford Loans, Federal Direct PLUS Loans and Federal Direct Consolidation Loans. 120 payments must be made to the Direct Loan program before receiving loan forgiveness. Any remaining principal and interest will be forgiven. Public service loan forgiveness amounts are not subject to federal income taxes.

Doctors Eligible for $170,000 or More In Loan Forgiveness By Practicing In Underserved Areas

The National Health Service Corps offers a student loan forgiveness program for doctors who practice at approved sites around the country in authorized Health Professional Shortage Areas. Doctors provide medical services in a wide variety of settings. Some of these include: rural and Indian Health Service clinics, public health department clinics and prisons.

For two years of service, up to $60,000 in student loan debt can be forgiven. The amount rises to $150,000 for five years of service. After six or more years of service, borrowers qualify for student loan forgiveness of all principal and interest on their student loans.

NHSC seeks doctors to serve mainly in the practice areas of primary care and mental health. The program also seeks dentists to serve in locations of high need. Graduates must apply to the program. First, doctors obtain a position at a qualified site. Once hired, they apply to receive an award from the program. Some additional documentation may be required.

Nursing Student Loan Forgiveness Program Erases Up to 85 Percent of Student Loan Debt

Nurses choosing to work in specified non-profit healthcare settings qualify for this program. Program applicants must complete all coursework to earn a registered nursing degree. Once hired, the position must be full-time, 32 hours per week or more, at an eligible facility or in a teaching position at a public or nonprofit nursing school. Only US citizens and lawful permanent residents qualify for the program.

After a two year service commitment, borrowers accepted into the Nursing Education Loan Repayment Program receive forgiveness of up to 60 percent of their original student loan amount. After an additional year in the program, nurses receive forgiveness of another 25 percent of their original student loan amount.

Nurses accepted into the program enter into a binding contract. Two years of work must be completed at the facility noted on the program application to be eligible for loan forgiveness. Some of the eligible facilities include: federally qualified health centers and nonprofit hospitals, skilled nursing facilities and hospice programs. In addition to qualifying for loan forgiveness, participants also receive salary and benefits paid by their employer.