Student loan forgiveness would really help out. If you are a teacher teaching in a low-income area or subject-matter shortage area, you just might be able to cancel or defer your college loans.
FSA (Federal Student Aid) at www.studentaid.ed.gov offers helpful information concerning this sought-after subject. For Perkins loans, forgiveness could be an option for you if you teach full time at a low-income school, or if you are teaching certain subjects. You could also qualify for deferment. Check with your school to get more information on these Perkins loans.
FSA states that, “You qualify for cancellation (discharge) of up to 100 percent of a Federal Perkins Loan if you have served full time in a public or nonprofit elementary or secondary school system as a: teacher in a school serving students from low-income families; a special-education teacher, including teachers of infants…; teacher in the fields of mathematics, science, foreign languages, or bilingual education; or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.”
Concerning student loan forgiveness for Stafford Loans received on or after October 1, 1998, if you are a full time teacher (for five consecutive years now) in a low-income school, you could be eligible to have part of your loan cancelled. This would include FFEL Stafford Loans, and both Direct Subsidized and Unsubsidized loans, as well as some consolidation loans. Low-income schoolteachers who are new borrowers can have up to $5000 dollars of their Stafford Loans canceled (FSA).
Deferment/Forbearance
Full time teachers in teacher shortage areas could get postponement of repayment of their loans (deferment) if they borrowed their money before July 1, 1993. If the loan was taken out after this date, teachers might be able to receive a forbearance, which is a temporary postponement or reduction of loans.
There are other ways to qualify for loan forgiveness. At FinAid (www.finaid.org/loans/forgiveness) they state that, “Under certain circumstances, the federal government will cancel all or part of an educational loan.” It could be possible if you perform volunteer work, for example, with AmeriCorps, the Peace Corps, or Volunteers in Service to America (VISTA).
Student loan forgiveness could also be an option for those who perform military service, (e.g. for students who are in the Army National Guard). They have a student loan repayment program with up to $10,000 in benefits.
Those who teach or practice medicine in certain types of communities are candidates, as well as those who meet other criteria of the forgiveness program. There are some law schools that forgive student loans of students who are serving in public interest or non-profit positions. These students can contact the National Association for Public Interest Law at 1-202-466-3686 to find out about this. Some hospitals and private healthcare facilities can help. They use the loan forgiveness to recruit. Occupational and physical therapists can find out about this at the American Physical Therapy Association at 1-800-999-2782. Find out more on student loan forgiveness on this website.
By Laura Hogg