Forget Accident Forgiveness! What about Loan Forgiveness?

Feeling overwhelmed by the idea of student loans that loom years after graduating?

It is indeed a heavy burden.  Of the 20 million students attending college per year, about 60% require federal student loans because they lack the certification to obtain scholarships or simply cannot afford the rising costs associated with college attendance.  With over half of students rendered financially dependent upon loans, the government has programs to help some.

Within the pile of seemingly endless debt, a silver lining awaits some…  A discovery which allows graduates to cut down their loans by thousands:  the employment of public service as a nurse, teacher or librarian in loan forgiveness programs.

So What’s Required?

A nursing school degree bestows the possibility of paying up to 60% off federal aid loans after two years of employment within the Nurse Corps Repayment Program.  Considering the decades to follow in their career path, two years is only a fraction of required time.

Ever wonder about the fulfillment of molding the minds of elementary and high school students?  This program includes such teachers.  For five years of full-time work, up to $17,500 could be reduced from loans, particularly those teaching science, math or special education.  Most other teachers qualify for about $5,000 worth of loan forgiveness, but that’s still a hefty chunk of change.

Librarians under the Public Service Loan Forgiveness Program also fall into the federal aid forgiveness sector, although the restriction lies in committing to ten years of work (which can be spread out over a larger span of time).  This only applies to graduates who utilized the Department of Education’s Direct Loan program.

Additionally, the graduate falling into librarian work must also join the Direct Loan repayment program.  All these restrictions sound a little troublesome, but the good news?  After ten years of full-time work, and the agreement of making payments as part of the Direct Loan program at a reduced cost, the remainder of your balance will be forgiven.

Already Qualified for Loan Forgiveness?

Amazingly, 33 million workers in the public sector are eligible, but fail to harness this option, mostly due to the daunting difficulty of applying for the forgiveness program.  You may fall under these categories and not even know it.  If you think to yourself, “Hey, this process is far too complicated”, don’t be hesitant to ask for help!  Ultimately, it’s well worth the effort.

And so the question remains: why not take advantage of these opportunities?  Most experiencing the suffocation of any sort of credit or loan would agree that they would grab any sort of possible relief to lighten their worries.  If you are already dedicating a determined amount of time in the public service sector, make sure you understand your loan forgiveness options.

Westface College Planning can help you navigate the financial aid process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.