Everyone knows that higher education costs in the U.S. have risen dramatically in recent years. Federal student loans have helped those who otherwise wouldn’t be able to attend college. However six months after you graduate you’re expected to start repaying those loans. The struggle to repay federal student loans can sometimes can sometimes be made easier due to the student’s current circumstances, including employment, disability, sudden school closure, and sometimes even bankruptcy (the Feds say “sometimes” right one their website) might be able to save them thousands of dollars in the long run.
The clearest explanation of what federal loan programs qualify for forgiveness or cancellation comes straight from the same website that helps you get those loans. It only took me 20 minutes to read through all of the pertinent sections on this website to learn about a variety of ways to get your loans forgiven, and it was 20 minutes well spent. I will quickly recap the highlights here.
Certain types of employment will qualify you for some programs, including but not limited to:
- School librarians
- Government workers (local, state or federal)
- 501(c)3 nonprofit employees
- Private sector employees providing specific public services
- Volunteers in the Peace Corps or ACTION program (including VISTA)
- Members of the U.S. armed forces (serving in area of hostilities)
- Nurses or medical technicians
- Law enforcement or corrections officers
- Head Start workers
- Child or family services workers
- Professional providers of early intervention services
Some other reasons you might have your federal loan forgiven include: you were not able to finish your program of study before the school you were attending unexpectedly closed; if you make scheduled payments on time for 120 payments; or if you are classified as 100% disabled.
If you do not qualify for some of the repayment plans, you still may be able to choose a repayment plan that makes it easier for you to repay your loans. Until higher education in the United States becomes free to attend (hey, we can all dream!), these may be some of your best options for federal loan forgiveness.