Student Loan Forgiveness Plan – Choose your Options Wisely!
Posted on January 15th, 2010
College students who have opted for student loan program in order to fund their education are into huge liability. The real challenge lies in repaying the loans. While some are lucky enough to be placed in lucrative jobs, others hardly find jobs to support their living, let alone student loan repayment.
Student Loan Forgiveness Plan
Student Loan Forgiveness Plan is an option offered to students for cancelling all or part of their student loan. Students are required to comply with the conditions specified under the loan forgiveness plan in order have their educational loans liabilities waived by the government in return for the services offered.
Student Loan Forgiveness Plan – Circumstances
Before you proceed to apply for a Student Loan Forgiveness Plan, it is important that you verify your eligibility for participating in the forgiveness plan. Under this plan you will be relieved of your liabilities against all educational loans you have availed, in full or in part. Read through the following circumstances and check whether the plan applies to you in the first place.
Your position was not clarified by the school authorities before the commencement of classes A refund of fees was due and you were not in receipt of it. The educational institution was closed, with in 90 days from the date you were enrolled and the course promised has not been completed Your evaluation process, even before the start of the course, was improper After the student loan was granted, you suffered partial or permanent disability There has been a forgery in your signature There has been an unexpected death of the borrower Bankruptcy (in some cases)
Qualified Services – Forgiveness Plan
The student should participate in one or more of the following services in order avail student’s loan forgiveness plan from the government
Volunteer Service: The student is expected to perform volunteering services with the following organizations:
Volunteers in Service to America (VISTA): This private organization works to eradicate poverty and help the homeless and illiterate. It offers loan forgiveness provided the student serves for 1700 hrs and is offered a stipend of $4,725. Peace Corps: A service of not less than 2 years covering 70 countries under this organization offers deferment of Stafford, Perkins and other federal consolidation loans. AmeriCorps: An amount of $4, 725 is offered towards loan, together with a stipend of $7,400 is offered for a volunteering service for 12 months.
Military Service: A student loan repayment program is offered to those who are members of Army National Guard group for an amount of up to $10,000.
Teaching Services A percentage of the student’s loan is forgiven for those students offering teaching services to those schools for students from low income.
Medical Service: Doctors who agree to serve areas that lack medical care for a specified number of years will have their Medical Loan forgiven
Legal Service: Law students who agree to serve as public prosecutors will have there Law School Loans forgiven.
Other: Forgiveness programs are also offered by certain universities for their students.
Similar Posts:
- Where to Find Best Deals for Unsubsidized Student Loan?
- Comparing Student Loan Types and Borrowing Limits
- Understanding financial aid – How to make it work best for you?
- How to get No Credit Student Loan
- Top Financial Aid Options for Students in 2010
Filed under Financing FAQ |