According to the Federal Reserve of the National Centre For Education Statistics, statistics estimate that at the end of 2020, the student loan debt was $1.7 trillion — and over $166 billion of that is delinquent or in default.
So you recently graduated from college, and your student loans will have to be paid soon? Or you want to understand how it works, don’t let these numbers outrun you. Because the good news is federal student loans offer to pay off benefits that many other loans don’t. One is the ability to qualify for federal student loan forgiveness under various circumstances; and the federal government may decide to forgive part, or all, of your federal student loans. This means it’s no longer required of you to pay your federal student loan.
Read on to find federal loan forgiveness options and act on what’s best for you.
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Federal Student Loan Forgiveness 2023
If you work or volunteer for specific organizations, you may be eligible for Specialized Loan Forgiveness Programs that will forgive or reduce your student debt. Here are some examples:
1. Student Loan Forgiveness for Teachers
The Teacher Loan Forgiveness Program will repay up to $17,500 toward college loans for qualified teachers. Full-time teachers with an outstanding FFEL; or Direct loan balance on; or after October 1998 qualify for $5,000 worth of college loan repayment after five consecutive years of service. Moreover, “Qualified Teachers” will get up to $17,500 of their Student Loan Forgiveness Program forgiven.
Whereas Full-time teachers with an extraordinary FFEL or Direct loan balance on or after October 1998 fit the bill for $5,000 worth of school credit reimbursement following five long continuous periods of administration.
Furthermore, student loan forgiveness for $17,500 is offered to qualified teachers who teach full-time science; or mathematics subjects at an eligible secondary school in disadvantaged areas; or provide special education to students with disabilities.
To learn more or to apply for this student loan forgiveness program for teachers, visit: Student aid
2. Student Loan Forgiveness for Medical and Nursing school Graduates
In some state programs, there are various student loan forgiveness programs available for qualified doctors and RN’s who practice in underserved areas lacking adequate medical care. Furthermore, the National Health Services Corps will repay up to $35,000 per year of service for qualified individuals, click here.
Meanwhile, for qualified individuals who serve at least two years in undeserving facilities, the Nursing Education Loan Repayment Program (NELRP) repays up to 60% of your college loan balance.
To learn more about eligibility and to download application forms, visit click here.
3. Student Loan Forgiveness for Armed Forces
The government appreciates the efforts of those who serve and protect the public with an array of student loan forgiveness programs for the military.
Most importantly, the Armed Forces Forgiveness Program pays off up to $2,500 in-school loan debt of borrowers who served between September 11, 2001, and June 30, 2006, including; the GI Bill and enlistment bonuses. Moreover, the National Guard also offers a student loan forgiveness program, paying qualified individuals off up to $10,000 worth of college loan debt. For more information, call 1-800-GO-GUARD.20
4. Student Loan Forgiveness for Non-Profit Child or Family Services Agency Employees
In a bid to attract and retain highly trained early childcare professionals, the federal government has further developed programs forgiving up to 100% of the college loan balance for individuals at eligible focuses.
Moreover, to meet all requirements for this forgiveness loan program, borrowers should hold a degree in early childhood education. Borrowers should even have two years of full-time work experience at a qualified facility.
Essentially 70% of the children getting care come from families that acquire less than 85% of the state median household income. To learn more, call the Child Care Provider Loan Forgiveness support desk at 1-888-562-7002 or visit click here.
5. Student Loan Forgiveness for Providers of Intervention Services for the Disabled
Americorps is the domestic arm of the Peace Corps, awards volunteers $4,725 to apply toward their outstanding college loans following one year of service. To learn more, call 1-800-942-2677.
B. VISTA (Volunteers in Service to America)
VISTA Volunteer 1700 hours for one of the numerous associations across the country focused on eliminating hunger, poverty, homelessness, and illiteracy; and have up to $4725 wiped off your college balance. To learn more, call 1-800-942-2677.
The government will pay off your Perkins loan in total; if you give full-time services designed to help impaired newborn children or babies who have physical, psychological, informative, social, emotional, or versatile needs. Also, qualified programs can work from an in-home setting or outside the office giving the program adjusts to the prerequisites of the Individuals with Disabilities Education Act.
To learn more about this student loan forgiveness program, contact your loan provider. Finally, yet importantly, news has made it round the press about progressives in Congress of complete forgiveness of student loans. But it’s not advisable to put your financial plans into the hands of congress. So far, the deadlines for the pause in payments have been stretched twice; it’s clear that an agreement at that level isn’t coming quickly.
Also, find more resources that Offer Student Loan Forgiveness Programs; significantly more Student Loan Forgiveness programs that exist at the state or county government level; or through industry-specific organizations.
In conclusion, you can also contact the Human Resources department of your employer or groups that you volunteer or are thinking about joining; they are aware of many of the relatively unknown available programs. You could also contact volunteer organizations in your area to see if they have student loan forgiveness programs.