Student Loan Forgiveness Programs: Making Stafford Debts Easier to Clear

July 10, 2012 by  Filed under: Debt 

There is no doubt that, for so many college goers, the challenge is not to graduate but to pay exorbitant college fees. Recent surveys have revealed that the average 25-year-old graduate emerges from college with $30,000 consumer debts as well as student loans to repay. Little wonder student loan forgiveness programs are so popular.

In the real world, the ability to repay even small debts requires time and discipline, so for larger debts the challenge is even greater. But for some loaners, the chance to ease that burden a little is presented by forgiveness programs. For example, for students who benefited from Stafford federal financing, it is possible to access a forgiveness program.

These programs can make a huge difference when it comes for paying off student loans because, in return for agreeing to commit to public, national or charity service, a significant percentage of the overall debt with written off.

What is Expected

The key to student loan forgiveness initiatives is that society benefits from the activities of the graduate. Essentially, these graduates take the expertise they learned in college and apply it practically.

The range of services that can be taken include voluntary work for a recognized charity, military service, and medical practice in one of a certain number of communities. The benefits can range too, but on average, a complete loan debt can be cleared in just 5 years. And as beneficiaries of Stafford federal financing, it means that both state and graduate win out.

Some examples of specific roles is serving in the Army National Guard to see as much as $10,000 wiped off the student loan balance each year. Medical graduates can work in Indian Wellness clinics, or in low-income rural areas. Meanwhile, up to $4,700 can be taken off with a certain number of hours dedicated to the Peace Corp.

Advantages for Teaching Graduates

While all graduates can benefit from a student loan forgiveness program, those who have graduated as teachers can see a significant share of their debt cleared if they qualify for the program. This is not open to recent graduates, however, with a history of having worked in teaching required.

There are 4 key criteria that teachers must meet before they are able to seek approval for the program. First and foremost, they must have benefited from the Stafford federal financing program, or have borrowed from a Federal Family Education Loan (FFEL). They must also have no outstanding balance on an FFEL as of October 1, 1998.

Repayment arrangements must have been made on the defaulted student loan to the satisfaction of the federal government, and finally, the applicant must have worked as a teacher for a minimum of 5 consecutive years in a designated low-income school. Once these criteria are met, a teacher can see as much as $5,000 taken off their debt.

Other Factors for Teachers

There are more benefits to teachers who seek to qualify for a student loan forgiveness program. While $5,000 is a meaningful amount, there is more available if the right boxes are ticked.

For example, as much as $17,500 is available in forgiveness if the teacher has taught the right subjects in the right school. This is particularly true for mathematics and science. This condition is partly to help address the shortfall in such teachers, rewarding them with a larger share of the sum owed from the Stafford federal financing package.

Teaching other skills like reading and writing, as well as some more specialized as aspects of the school curriculum can also see a large share of the student loan cleared.

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Article Source:
http://EzineArticles.com/?expert=Mary_Wise

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