Most of the time, you will have to pay off every dollar that you borrow for your
college costs. There are special circumstances, however, where student loans can be
forgiven by the federal government. Student loan forgiveness programs are out there
for people in certain fields. The most common types of student loan forgiveness
programs are for people in the education field and folks who are in the military. This
can be quite a benefit for those students who aren't making quite enough money in
their respective fields to pay off the hefty student loan balances.
Teacher loan forgiveness programs are common for students who spend more than
five years teaching. Because teachers are some of the most underpaid individuals in
the workforce, they can struggle to pay off their student loans during their early years.
The government has taken notice of this and realizes their overall worth. With that in
mind, teacher loan forgiveness programs can give them a break from paying a portion
of what they owe. Interestingly enough, this forgiveness can be extended for both
federal loans and privately held loans.
There are different levels of student loan forgiveness that you can qualify for under
certain circumstances. The most common amount that you will get is $5,000. This
may not seem like a lot, but having $5,000 worth of debt forgiven can save you a
great deal in the long run because of all of the incurred interest rates that you would
otherwise have paid.
There is a bigger forgiveness program available for teachers who are in different
fields. If you happen to teach math, science, or special education, then you might be
eligible for an even greater forgiveness. Those teachers with more than five years of
experience and a substantial amount of debt can be relieved of as much as $17,500.
This is the equivalent of paying off more than a year of college for some people. For
teachers, who struggle with low salaries and high hours, this is a great way to take
some of the loan off.
In addition to the programs that are offered on a federal level, there are also state
directed forgiveness programs which you should explore in certain circumstances.
Iowa, for instance, will forgive up to $10,000 worth of loan forgiveness to certain
folks if they qualify. States are always looking to help out their workers. If you are
loyal enough to remain a civil servant or a teacher for five to seven years, then there
are programs out there to help you.
Looking at the big picture, student loan forgiveness programs are a great way to boost
the economy. In addition, by creating these programs, the government is looking to
encourage more people to get involved in teaching and public service. With the
knowledge that there is going to be some help down the road, more folks are likely to
get into these fields. With that in mind, student loan forgiveness programs are a clear
win-win for both society and individuals.