Student Loan Forgiveness Programs

Eliminating College Student Debt Through a Program of Forgiveness

Oct 12, 2009

Struggling to cope with the amount of college student debt? Discover how student loan forgiveness programs can help to reduce the amount owed.

Student loan forgiveness programs are a way of clearing some or all college student debt. Unlike other forms of borrowing, student debt is not governed by the statute of limitations. This means that non-payment will not result in it going away.

Filing for Chapter 7 Bankruptcy

A statistically small number of individual are able to clear college student debt via the provation of significant and lasting financial hardship. It remains incredibly difficult to write-off debt with chapter 7 bankruptcy as the courts will need to be sure that the debtor is likely to remain on a very low income for a considerable number of years.

Student Loan Forgiveness Programs

Whilst not all graduates will be able to clear some or all of their college student debt through college loan forgiveness, the following groups could potentially benefit:

Department of Health and Human Services

The NIH offers a Loan Repayment Program to individuals who are prepared to use their clinical research skills to help with the development of medical treatments for diseases and illnesses. This student loan forgiveness program offers eligible participants up to $35,000 per annum and is only applicable for those with a suitable scientific education and background.

Public Service Loan Forgiveness

Student debt help is available to college graduates under the College Cost Reduction and Access Act of 2007. After serving for 10 years in the public service, the remaining money owed is cleared once 120 payments have been made. The time period is 25 years for income-contingent and income-based repayment plans.

Law School Loan Repayment Assistance Programs

Equal Justice Works discovered that two-thirds of Law Schools surveyed offered a student loan forgiveness program. Whilst it is sensible to contact the Law School studied at, a list of universities offering a college loan forgiveness can be found at equaljusticeworks.org.

American Federation of Teachers

College graduates who plan to pursue a teaching career have an excellent chance of achieving college loan forgiveness. There are a number of programs displayed at AFT.org. Although all the criteria are different for each program, the database is searchable by state.

Americorps

Over 540,000 Americans have been actively involved in AmeriCorps State and National, AmeriCorps VISTA, and AmeriCorps NCCC since 1993. Their programs are aimed at helping the less fortunate through an active involvement in a number of social programs.

Their student loan forgiveness programs typically last for between 9 and 12 months. Participants will earn $7,400 and a further $4,725 once the program is completed. There are an estimated 75,000 volunteer positions available.

Student loan forgiveness programs are a potentially ideal solution for those who are in urgent need of student debt help. However, only a small percentage of individuals are likely to benefit. Although student loan interest rates are lower than on other sources of borrowing, don't let debt continue indefinitely without seeking financial assistance from a qualified non-profit credit counseling service.

Bell, Kay. (March 16, 2009). "Education loans can provide a tax break." Bankrate.com.

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