Please forgive college student loan Uncle Sam

For many students, the prospect of paying back a large amount of student loans can be daunting. This is especially true if your starting salary following graduation is not very high. This is a lot of financial pressure and the clock is ticking to pay off student loans to uncle Sam. Some loans such as the subsidized Stafford student loan, which is a federal student loan program, the government pays the interest on the loan while you are in school and during the grace period which is (6) months after you graduate from college. You have a little to find a job to cover your student loan payments.  If you can't find a good paying job to cover your student loan debt then a student loan default may occur.

Fortunately there are a number of paths that will forgive a college student loan under certain circumstances. The general qualifications are: Perform volunteer work, Perform military service or teach or practice medicine in certain designated communities.

In order for the government to forgive student loan under the volunteer work qualification, you must volunteer in the AmeriCorps, Peace Corps or Volunteers in Service to America. Any student who has enrolled in the Army National Guard may be eligible for up to $10,000 toward repayment of their student loans.

Teaching is one of the most common ways to receive a forgiveness of a student loan; however there are very specific requirements.

Students who have a Perkins loan and teach full-time in an elementary or secondary school that serves low income families may have a portion of their loan forgive; up to 15% for the first and second years of teaching; 20% for their third and fourth years and 30% for their fifth year of service. Students with a major in Education who teach in Mississippi may also be eligible to receive a forgiveness of a portion of their student loan; up to two years of your loan in certain circumstances.

Law students who go on to serve in public interest or non-profit positions may be eligible to receive forgiveness for a portion of their loans. This policy varies per law school.

Student loan forgiveness programs are also offered through the US Department of Health and Human Services for physicians and registered nurses who practice for a certain number of years in areas that lack in regards to adequate medical care.

If you think that you may qualify for the government to forgive a student loan contact your university where your loan was acquired for more information regarding specific qualifications and questions about forgiving your college loan.

Also keep in mind this tax fact regarding the amount of money in student loans forgiven is considered to be taxable income; so you’ll need to take this into account for tax purposes.

Loan Forgiveness Program OSAP
Student loan forgiveness explained. Provincial loans- are you in good standing, which means not defaulted on a Canada Student Loan or on funding (ie, do not repay)