Can your student loans be forgiven up to a certain amount?
Are you not able to pay off your student loans in full and looking for student loan debt reduction strategies? If yes, then you must know that there are some student loan reduction programs for certain professionals such as, teachers, lawyers, nurse students, etc. Go through this article to know about loan forgiveness programs for professionals.
Student loan debt forgiveness programs for nurses
Owing to the scarcity of well-trained nurses, the federal as well as some state governments have come up with nursing loan forgiveness and repayment programs. To take advantage of this program, you need to work in low income areas that are in
high need of healthcare facility. If you fulfill the eligibility criteria, then 40% of your outstanding federal loans can get waived off. The National Institutes of Health may also forgive up to 35,000 USD a year if you are a medical professional who,s conducting research.
Student loan debt forgiveness programs for teachers
The Teacher Loan Forgiveness Program is designed in order to encourage people to choose teaching profession. It is one of the most widespread student loan forgiveness programs. Under this program, your outstanding student loan can get reduced if you
work full time for 5 consecutive years in elementary or secondary schools that provide education to low-income families. If you meet the eligibility criteria, then around 17,500 USD can get waived off comprising the principal and interest on your Direct and/or FFEL (Federal Family Education Loan) student loans.
According to The National Defense Education Act, the government can reduce a certain portion of your student loan debt if you’re serving an elementary or secondary school in a low income area. Under this program, 15% of your student loan balance can be forgiven during the first and second years of your service, about 20% during the third and fourth years and about 30% in the fifth year.
Student loan forgiveness programs for law students
If you’re a lawyer and you agree to represent a non-profit organization or want to serve in the public sector, then a portion of your student loan debt can be forgiven by your law school. You can also find out whether your school is sponsoring a loan repayment or forgiveness program. You can take help of this program if you find one.
Apart from above, in some rare situations, the bankruptcy court may waive off your outstanding student loans if you’re facing extreme financial hardship.