Federal Student Loan Forgiveness Program Stafford Loan and Perkins Loan
Don't Panic if you can't repay your federal student loan. The federal government will cancel all or part of an educational loan if you qualify for a Student loan foregiveness program.
How will you qualify for Federal Loan Student Foregiveness Program ?
- You can Perform volunteer work
- You can Perform military service
- You can Teach or practice medicine in certain types of communities or
- You can meet other criteria specified by the forgiveness program.
1) Volunteer Work for Student Loan Forgiveness:
There are a few voluntary organisations in USA which offer Student Loan foregiveness programs.
a) Americorps: You need to serve for 12 months and receive up to $7400 in stipends plus $4725 to be used towards your loan. Contact them at 1-800-942-2677.
b) Volunteers in Service to America (VISTA): Provide 1700 hours of service to VISTA and you would receive $4725. You might need to work with private, non-profit groups.
c) Peace Corps: You may apply for deferment or full or partial foregiveness of Stafford, Perkins and Consolidation loans. Peace Corps are located at 1111 20th St., NW, Washington, DC 20526 or call 1-800-424-8580 or 1-202-692-1845.
2) Volunteer Service for Military
If you are in Army National Guard, you might qualify for Student Loan Repayment Program, which offers up to $10,000. You can get more details here
3) Perkins Loans and Stafford Loan Student Loan Foregiveness Programs:
Perkins Student loansand Stafford Student Loans can be cancelled for full-time service as a teacher in a designated elementary or secondary school serving students from low-income families, special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school), qualified professional provider of early intervention services for the disabled, teacher of math, science, foreign languages, bilingual education, or other fields designated as teacher shortage areas, employee of a public or non-profit child or family service agency providing services to high-risk children and their families from low-income communities, nurse or medical technician, law enforcement or corrections officer, staff member in the educational component of a Head Start Program, service as a Vista or Peace Corps Volunteer and service in the Armed Forces (up to 50% in areas of hostilities or imminent danger).
Federal student loan repayment program is not a loan foregiveness but instead a repayment of student loan as the agencies make payments directly to the loan holder and the payments represent taxable income to the employee. The agencies can repay up to $10,000 in Federal student loans per employee per calendar year, with a cumulative maximum of $60,000 per employee.
You can get more details on federal student loan repayment program
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