Finishing your college education often leads major financial success down the line.
In theory that is why so many people attend college, right?
It is statistically proven that those who hold college degrees find more opportunities and job promotions.
However, school isn’t cheap.
What if there was a way to qualify for student loan forgiveness?
Read on to see if you may potentially qualify for student loan forgiveness once your degree is complete.
1. Qualify to Work A Job In Public Service
There is a way you can eliminate your student loan debt by working a public service job, or a government-based job.
The Public Service Student Loan Forgiveness Program can also enable you to repay your loans through volunteer work and by working for not-for-profit organizations.
Simply put, your employer needs to be:
- Government organization (federal, state, local)
- Not-for-profit organization (such as AmeriCorps)
In order to see if you qualify for student loan forgiveness by working in public service, (or by following other programs), it is also required that you make a minimum of 120 consecutive payments (on time) made to a Direct Consolidation Loan.
Once you meet that specific mark, you need to stay in a public service job for at least 10 years before any of your debt is forgiven.
Some people don’t follow this important step and therefore are not eligible to receive debt forgiveness if the 10-year minimum is not met.
So make sure you stay employed, at a minimum of 30 hours per week to be considered full-time, and keep your student debt forgiveness in mind so that you can easily continue the Public Service Student Loan Forgiveness Program.
2. Be On an Income-Driven Repayment Plan
For any student loan debt forgiveness, you must be on an income-driven repayment plan.
Your repayment plan is based on your income and how many people are included in your family household.
This method could impact how much you need to pay per month on your loans, and it usually will come out to roughly 10-15% of your total income.
Fill out the Employment Certification for Public Service Loan Forgiveness form to see if you qualify.
After filling out the form, send it off to the government to continue your path to eliminate your student debt.
3. Are you a teacher, nurse, firefighter or in the military?
Good news to any teachers, nurses, firefighters, and those in service – you qualify for student loan forgiveness.
Teacher Loan Forgiveness
Do you have outstanding loans under $17,500?
Have you also worked a minimum of five years in a row in a low-income public school?
Appy for student debt forgiveness by filling out the Teacher Loan Forgiveness Application.
The Teacher Student Loan Forgiveness Program is designed for encouraging students to continue their careers into seeking educational employment.
Do not miss out on this opportunity to have your student loans discharged by taking advantage of the Teacher Student Loan Forgiveness Program today.
Servicemembers Civil Relief Acts (SCRA)
The Servicemembers Civil Relief Acts act is put in place to help an active duty service person’s debt.
The act will cap the interest that is put on your loans at 6%, which could potentially shave off 1-2 years worth of debt.
4. Qualify for Student Debt Discharge
This is the most extreme case of eliminating your debt.
You can only qualify for student loan forgiveness if any of the following occurs:
- Death of borrower
- Identity theft to obtain the loans
- The school closes during the borrowed time
- The borrower has experienced a permanent disability
- The school does not refund loans to the lender
These are all examples of when a student’s debt can be discharged.
It does not include circumstances such as failure to complete a college degree, or dropping out of school early.
5. Qualify for Student Loan Repayment Options
If you choose not to work a public service job, you have other options to repay your student loans.
By refinancing your loans, you can pay off your loans by merging them into one single loan.
This process will help you speed up the repayments you need to make.
If you need to or want to make lower monthly payments, refinancing is a good option to take for your individual income level.
You could also extend the amount of time you determine to repay your loans in, but this can lead to you having unwanted added interest.
6. So, How Do You Know If You Qualify for Student Loan Forgiveness?
If you are currently holding a position in a government job or if you are working for a nonprofit organization, chances are you most definitely qualify for student loan forgiveness options.
Some jobs that qualify include:
- AmeriCorps Members
- Government Officials
- Public safety
- Law enforcement
- Public health
- Emergency management
- Public libraries
- Early childhood education
- Public service for the elderly
- School libraries
- Public education
It’s important for us to note that each person has his or her own unique financial plan.
What works for one person may not work for you, so consider how you wish to tackle your debt.
Yes, you want to pay off your debt as soon as possible, but sometimes there is no easy way out and you have to stay on a path that takes years to develop to cross the finish line.
You can’t eliminate your debt overnight, but you can find a way to reevaluate how to pay it all off in a timely manner, or have it removed entirely.
College is fun. Ending fun four years with thousands in student loan debt? Not so much.
Carrying a huge financial burden such as student debt can not only impact your future credit score, but it can leave you will emotional damage from the choices you make to repay them in time.
Don’t relay, contact us today for even more guidance through your toughest post-collegiate years.
We also post tons of helpful articles each month for you to receive absolutely FREE and professional information about how you can tackle your student loans now so you can fast-track your dreams to living a debt-free life.