12.20.07
Student Loan Forgiveness
Most people know that joining the military or Peace Corps willhelp pay off student loans – but did you know there are other ways?
Here’s an excerpt from an article at the American Chronicle describing other possibilities:
Student loan forgiveness for either Perkins Loans or Stafford Loans can be achieved through full-time teaching positions at a low-income school as designated by the U.S. Department of Education or teaching in certain subject areas such as special education, mathematics, science, foreign languages and bilingual education. The chief administrator of the qualified school at which you taught will have to verify your participation and completion. Depending on your qualifications, you could earn forgiveness of from $5,000 to as much as $17,500 in loans.
Certain health care professionals can also have their payments deferred or totally forgiven with participation in the Nursing Education Loan Repayment Program. The NELRP will repay 60 percent of the qualifying loan balance of registered nurses who are selected for funding in exchange for 2 years of service at a critical shortage facility. Those selected may be allowed to work a third year and receive repayment for an additional 25 percent of their qualifying loan balance. Only about 15% of the total number of applicants were selected to participate in the program for the last two years.
The National Health Service Corps Loan Repayment Program provides for up to $50,000 in forgiveness for qualifying educational loans in exchange for two years service in a underserved communities. Areas of need currently are primary care professionals, including dental and mental and behavioral health clinicians.
There are other, less common ways to become eligible for partial or total student loan discharge. For example, if the school happened to close within 90 days of your enrollment and you were unable to finish your course(s), you may be eligible for a
partial discharge of your loan, dependent on the amount of your expenses. If you did not receive an expected refund, you may be eligible for forgiveness of the amount of that refund. If your signature was forged on your loan agreements, your loan can be forgiven. If you die or find yourself temporarily or permanently disabled, you may receive student loan cancellation.
Belinda Edwards said,
December 27, 2007 at 1:49 pm
I am a mental health professional and live in Louisiana. I would like to know if there are any underserved areas in Louisiana where I might work to obtain student loan forgiveness. I would appreciate hearing from you regarding my questions. Thanks. Belinda Edwards
moniqueleonard said,
December 27, 2007 at 1:56 pm
Hello Belinda,
I don’t have the information at hand for individual states. I would recommend calling the National Health Service Corps Loan Repayment Program directly to find out.
Their website is http://nhsc.bhpr.hrsa.gov/
Desiree said,
December 31, 2007 at 12:03 am
I signed a parent plus loan for my child and didn’t realize that if my child didn’t graduate I would have to pay the loan back. Is there any forgiveness programs for myself? I am also careing for my grand-children and I am on the border of being considered low income.
moniqueleonard said,
January 2, 2008 at 9:36 am
Hello Desiree,
I would recommend calling your loan company and discussing Forbearance and Deferment. I would recommend you read my post on this topic:
http://parentstudentloans.wordpress.com/2007/08/03/i-cant-afford-my-student-loan-payments-what-do-i-do/
You should also consider consolidating the loan – it spreads the loan out over a longer period of time and thus you have lower monthly payments, though you will pay more in the long run. This is the option that most people take as there are no restrictions.
VELMA said,
January 9, 2008 at 1:11 am
MY DAUGHTER IS AN EXCHANGE STUDENT IN NARID SPAIN. FINANCIALAID FOR SPRING SEMESTER WAS OLACED ON ARREARS. I WAS NOT EXPECTING THIS SINCE I WAS MAKING PAYMENTS AS ARRANGED WITH THE COLLEGE.
NOW I DO NOY HAVE MONET TO PAY CIEE
nO T ABLE TO QUALIFT FOR LOANS SO FAR. ANY SUGGTIONS FOR QUICK FINANCIAL ASSISTANCE!!!!!!!!!!!!!!!!!!!!!
CHILD STRAYED IN SPAIN
VELMA
moniqueleonard said,
January 9, 2008 at 10:18 am
Velma,
Call the school’s financial aid office right away. They should be able to help you, or at leats guide you through your options.
For example, if you got denied for a private loan, you may be able to get a PLUS loan. If you’re denied for a PLUS loan, your daughter may be eligible for a higher Stafford Loan amount.
But please call the school right away. They are not the enemy, they want your daughter to graduate as much as you do, believe me.
» Student Loan Forgiveness said,
January 10, 2008 at 12:46 am
[...] nicod3mus wrote an interesting post today onHere’s a quick excerptStudent loan forgiveness for either Perkins Loans or Stafford Loans can be achieved through full-time teaching positions at a low-income school as designated by the US Department of Education or teaching in certain subject areas such as … [...]
Debra said,
January 10, 2008 at 5:09 pm
My mother is 55, and permanently disabled due to a host of issues including a broken back, a broken neck, fibromyalgea, rheumatiod arthritis, degenerative bone disorder, and clinical depression compiled with PTSD. We, (her children) have been watching her suffer for years, and now for the last two years it has been compounded with severe financial strain resulting from the deduction of $188 from her social security each month to pay back her student loan. I have known about disability forgiveness for a while thanks to her case worker with Magellan (a mental health organization), but neither her psychiatrist, her case worker, nor myself can find any information on how to go about getting the forgiveness process started. None of us have even been able to find the application! She is being hounded almost daily by the company that is handling her loan in collections, despite the fact that they are deducting a sizable payment each month. Can you tell me how to file an application for forgiveness and who I am supposed to submit it to. Her loan company absolutely refuses even to forbear, defer, or decrease her loan payments. Please help.
moniqueleonard said,
January 11, 2008 at 8:25 am
HI Debra,
You need to call her loan company, and also take a good look at the Department of Education’s website. This page should help you:
http://studentaid.ed.gov/PORTALSWebApp/students/english/discharges.jsp?tab=repaying
Good luck!
kim said,
January 12, 2008 at 12:27 am
My son is a junior in high school and we have never been in a position to save for college for him and we are now getting worried about this as it’s approaching quickly. We have not applied for a student loan nor do we know where to start. He is planning on going to a community college for at least the first two years. There will be no schloarship coming out of high school. My parents are suggesting we start looking now. What’s your advice?
Thanks
Michael said,
February 18, 2008 at 11:10 am
Hello I dont want to say that there is so much being said about student loans on so many blogs,sites,chat rooms and I just am surprised that the comments I see on here. I want to say this that student loans can be discharged for many reasons and I have done this for many people including my self there are rules to protect the consumer and I would suggest you call or check out my site to see if you might qualify while the laws are there. Now to Debra Please contact me I will help you file the right papers for your mother and stop this BS for free and there is a good chance your Mother will get back what they have taken so please contact me through the site thanks Michael.
Marcy said,
March 5, 2008 at 3:03 pm
My husband’s parents paid off his student loan over 20 yrs ago when he graduated from college. This past year we have been receiving bills stating the he owes on the original student loan plus twenty years worth of interest. His parents are in their 80’s now, and have no records from this far back. It is only their word that it was paid off. I know that we cannot be the only ones that this sort of thing is happening to, but what can we do about it? We don’t feel that paying a loan twice over is the answer. Anyone with any suggestions?
Lea said,
March 28, 2008 at 11:55 am
I need any info on forgiveness/cancellation of student loans. Since the feds decided to re-sale students loans, and financial companies are able to tack on 25% to the already existing student loans. How can we get a fair break, if we sincerely have not been able to repay these loans? I am a single mom who needs to get back into graduate school, my daughter was born sick, and her father abandoned us. I have had a few teaching positions, w/out tenure, continued car trouble. Now I dont have a car, no job, and am just trying to keep a roof over my head. If I had the money I would repay it, but I just have been able to get by. Please if anyone has information please email me at virtulady07@yahoo.com as soon as possible. Thank you!
Judy said,
March 30, 2008 at 7:52 pm
Hi,
I would like to know if you can please tell me if there is a loan forgiveness program for nurse/nurse practitioner regarding private loans that anyone might be aware of? I am aware of the College Cost Reduction and Access Act of 2007 to help with loan forgiveness for federal loans; however, I need info on loan forgivess for federal and private loans. I have information regarding HRSA but I am not able to use that program at the present time. I would appreciate any help and/or information that anyone might have. Please advise. Thanks so much!
helen said,
April 6, 2008 at 11:12 pm
my daughter works at a Headstart school for low income families. will this work on a stafford loan i also work there and my youngest daughter is sitting out a yr for fear of unable to pay previous loans and a balance still owed at the university will this work for her
moniqueleonard said,
April 7, 2008 at 8:19 am
Hi Helen,
In each case, your daughter will need to contact her loan company directly. Her school’s HR department might be able to give her some guidance (or ammunition!) as well.
For your youngest daughter, you did not mention her employment situation. If she’s not working at something like the Peace Corps or an underprivileged school, she most likely will not qualify for forgiveness, but she might qualify for deferment, where payments are put on hold for a short period of time. But warn her that this time should be used to save money to pay back the loans, as you can only defer loans for so long before you run out of deferment options.
Also, tell them both DO NOT DEFAULT on your loans, no matter what happens. If they do, it will ruin their credit for 10 years or more.
Bertha said,
April 16, 2008 at 6:26 pm
My daughter will be graduating from a 4 year college, May 2009. She is planning to attend a doctor of physical therapy program in Southern California. How does she qualify for a loan forgiveness program to cover her cost of graduate school. I have heard that the College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program that covers health care professionals -would she qualify and what would she have to do? Where can I get a copy of this Act-in layman language.
moniqueleonard said,
April 17, 2008 at 8:15 am
Hi Bertha,
Let me describe a few things because I think you’re misunderstanding some concepts.
Forgiveness is essentially having your loans written off for a valid reason – community service, illness, etc. There are several ways to qualify but they are VERY specific and may not be for the full amount.
Deferment is essentially a postponing of payments. They may or may not accrue interest in the deferment period. You can defer existing loans while going back to school in most cases.
As your daughter will be entering grad school, she’ll want to do a lot of searching for scholarships, as she won’t have to pay them back. Also, her school may offer grants related to her chosen field. Next, she’ll want to call the loan companies for her undergraduate loans and put her loans into deferment while she attends graduate school so she will not be required to make payments.
Next she’ll have to look into loans to fund her graduate school. Federal loans like the Stafford and GradPLUS loans are your best deal by far and offer much more favorable terms than private loans, including lower fixed interest rates and more options for deferment and forgiveness. Stafford loans do not enter repayment until after you graduate or drop below half-time.
Rebecca said,
June 4, 2008 at 6:28 pm
Hi,
My mother took out a parent loan while I was in my first year of college. I was dismissed at the end of the spring semester because it turned out that I had not graduated high school and my transcripts were never sent over to my college. I stumbled across a loan forgiveness/discharge article while trying to find out how to graduate in three years. My mother took out the loan with Sallie Mae and I would like to know if it is possible for her to get her money back.
moniqueleonard said,
June 5, 2008 at 9:43 am
Hi Rebecca,
I’m not aware of any program that will pay off your mother’s loan. From the college’s point of view, you owe them money because you did attend for a while, so they will not refund your money.
You also don’t mention if the loan was a PLUS loan or a private loan. You likely have more options with a PLUS loan, but I think she’ll have to pay it back. Requirements for loan forgiveness/discharge are very stringent.
If you have a PLUS loan, I suggest you contact the US Dept. of Education as that is a federal loan and they may be able to give you some advice. Their website is:
http://www.ed.gov/
bj jhones said,
July 16, 2008 at 4:02 pm
My questions is – why are only certain fields available for student loan forgiveness, especially when you find youself chronically unemployed because you have to care for a sick child or other reasons that may occur. It happens to be unfair that only elite groups are available for this forgiveness. is there any reason why this is and if not are there other programs that are available for student loan forgiveness that would apply to the rest of us. I have loans from college, from a BA program and an MA program in which i have not yet been able to pay back. I really really want to get started paying them back, however, i can’t afford to. Thanks in advance for your input and suggestions!!!
moniqueleonard said,
July 17, 2008 at 7:16 am
Hi BJ,
For many years there were no forgiveness programs at all. They are still the exception rather than the rule.
There are no “generally available” Federal Student Loan forgiveness programs that I’m aware of. The government creates forgiveness programs to attract people to fields that are important but have problems attracting good candidates, such as teaching in inner city schools. Regarding the inner-city-teaching program, you need to work there for 10 years before you see any debt relief.
There are no programs to forgive loans right away. You can ask for an economic hardship deferment or forbearance.
Deferment – This is where your loan company give you a temporary reprieve. Essentially, you are allowed to stop paying monthly payments for an agreed-upon period of time. For this, you MUST call your loan company and you must qualify for this. For example, you’ve gone back to school, lost your job or work for the Peace Corp. Read this article from the US Department of Education to learn more:http://studentaid.ed.gov/students/publications/repaying_loans/index.html
Forbearance – Forbearance is for those who have difficulty repaying their loans but don’t qualify for deferment, which has stricter guidelines. Payments are postponed or reduced temporarily, and interest accrues while you are in forbearance. You MUST call your loan company for this also. The article above will also tell you about forbearance.
Tara said,
July 25, 2008 at 1:04 pm
Hi
I am a single mom with a bachelor’s degree in Social Work. I have worked with the elder population and abused children. Do you know of any programs that could help me out. I have over 40,000 in loans and my payments are over 600 a month.
moniqueleonard said,
July 25, 2008 at 1:08 pm
Your best bet is to check the Department of Education’s website: http://www.ed.gov/
Nancy Gallagher said,
July 27, 2008 at 7:29 pm
I am currently emplyed with a non-profit community mental health center and a mental health clinician who is contracted with a local county jail in NH. Are there any available programs possible?
moniqueleonard said,
July 28, 2008 at 6:43 am
Are you asking about loan forgiveness programs? If so, your best bet is to check the Department of Education’s website: http://www.ed.gov/
deepak student loans said,
August 2, 2008 at 3:30 am
These unsecured loans’ features will also help you to build a budget and stick to it easily. When credit cards are included in a budget, the complexity increases because you have to foresee many things in order for the budget to be useful. Predicting ones behavior is complicated enough, if you have to predict market conditions and income variations in order to see if you will be able to meet credit card payments that keep changing as a consequence of a variable rate, things can get really complicated.
Kyle said,
August 5, 2008 at 3:56 pm
10 years (120 payments) in the public/501c3 sector on an income contingent payment plan and you’re all forgiven. Check out:
http://www.finaid.org/loans/publicservice.phtml
Christina said,
August 19, 2008 at 8:50 pm
I am a single mom who just finished my Bachelor’s degree in Business Administration and I graduated with a 4.0. I had to finish my last year and a half with my four children and no child support while my former husband was in and out of jail. I worked part time as a waitress and had to live on part of my student loan overage. Now I am the director of the Medical Assisting program at a private University. I was wondering if you have any information on how I can find a loan forgiveness program which I could qualify for?
Thanks for your help.
moniqueleonard said,
August 20, 2008 at 6:23 am
Christina,
I’m not aware of any forgiveness programs for people working at colleges. Forgiveness is normally tied to working in an under-staffed field for which there is a great need, like the Peace Corp or inner city schools.
If you’re having trouble paying your loans, you could look into forbearance or deferment to give yourself some breathing room.
Regina said,
August 24, 2008 at 6:46 pm
Help! I owed $25.000 in interest and I only borrowed $20.000 . I am currently suffering from a few accidents that has permanently disabled me, from working, full time employment.
I attend The Strattford school that was close before I graduated.
I may not have receive an expected refund.
moniqueleonard said,
August 25, 2008 at 6:32 am
Regina –
If you have documents from your doctor stating you are permanently disabled, call your lender. Permanent disability (with the documents to prove it) may qualify you for loan forgiveness.
One point that I was confused about – you owe $25,000 in pure interest, or in interest and principle combined? If it’s combined, than that’s normal, though a rather high interest rate (perhaps there’s a few fees in there too? Maybe a late fee?). Remember lenders only lend so they can make a profit. You pay interest on the money you borrow – this is the profit lenders make.
Shawn Cook said,
September 23, 2008 at 3:01 pm
My mother recently passed awayand had a parent student plus loan for me. What happens is the debt gone? Do I haveto pay it? I have looked but cant find anything on it…
moniqueleonard said,
September 23, 2008 at 3:10 pm
As these are Federal Loans, they should be discharged (forgiven) after the death of the borrower. Contact the loan company your mother used and be prepared to mail them a death certificate as proof. They may require other information – I’m not certain.
My heart goes out to you for your loss.
dionne said,
December 2, 2008 at 5:13 pm
I applied for a sallie mae graduate loan, and was told that my credit was not too good. They told me that I need the credit company to write a letter in regard to my status. Total it was 3 credit company. One was my mortgage company, one was a bank that i owed 110.00, the other was sprint which is handled by a different outside company. I faxed the paperwork to them, I called them today to verify my status, they said that they could not verify my accounts and that my paperwork looked like it was fraud, and i would not get any further distrubution from sallie mae. All my paper are good, I ask them how did they verify them, she could not answer me but give me a number to call. I need my tuition paid, because i am a full time student in school. I am trying to get this cleared up. How can Sallie mae accuse me of fraud? My mortgage was modifiy, my bank however changed they name from Commerce Bank to a new name, and my Spring account is handled my an otherside source.
Dee
moniqueleonard said,
December 3, 2008 at 7:37 am
Hi Dee,
How about sending new documentation from your bank on stationary with their new name and logo? That should clear one hurdle.
And if I were you, I would call Sprint, explain that your student loan company needs it on Sprint letterhead in order for it to count. They may be willing to work with you.
Dom said,
December 14, 2008 at 6:12 pm
HI
hsycology. He is very controlling and that is one of the reasons why I MUST leave and go away to college to pursue my dreams and live my life. After I turn 18 which is during my senior year I know they cannot control me anymore. I need some guidance as to how I can get money to go to school and just where to start.
I am a junior in High School in Georgia. I am orginally from NewYork and the transition from the states had a big impact on my grades. I know that I will not be recieciving a big scholarship when it comes time for me to go to college. I am really stressing as crunch time nears. Both my parents never went away to college that is something that I am determined to do. Also my stepfather told me that I cant go to school for what I want to major in
PLEASE HELP>(Guidance Needed)
moniqueleonard said,
December 15, 2008 at 8:23 am
Hi Dom,
I suggest you start doing your research now. Visit this page:
http://www.studentloannetwork.com/student-resources/free-ebooks.php and take a look at the free eBooks listed there.
There are some great ones that explain Financial Aid, the FAFSA form, searching for Scholarships, and how to work out a budget, which will be crucial to you as you strike out on your own. These should get you started.
Good luck!!
Greg said,
December 29, 2008 at 5:15 pm
my daughter applied for and received 70,000.00 in student loans to attend a non accredited college. She has now quit and wants to attend another school that is accredited in a different field of study. I was working out of the country and had no idea. She will never be able to repay these loans even with a minimum payment. Any suggestions or help would be appreciated. She does not even have enough credits for a AS degree.
moniqueleonard said,
December 30, 2008 at 10:27 am
Hi Greg,
Any idea what kind of loans these are? Federal? Private? That makes a huge difference. I’m not sure how she got $70,000 worth of loans to a non-accredited program…
If they’re federal, which seems unlikely, she should look at the Department of Education’s website (www.ed.gov) and look into consolidating. That will stretch her repayment over a longer number of years, making monthly payments less, though she will pay more in the long run.
If they’re private… well… that’s a tougher nut to crack. She may be eligible for private consolidation, though fewer companies are providing this service in the current economic climate. Otherwise, she should call the loan company and inquire about putting loans in deferment while attending school. Then at least she won’t have to make payments on them till after graduation.
Going forward, have her look at scholarships and always take federal loans over private ones – they have many more borrower benefits and you have much more recourse.
Rebecca said,
January 29, 2009 at 7:40 pm
Dear Monique,
I am in desperation as well with a student loan. I have had it for twenty years and have it deffered and on forbearance, but also have made payments when I could. However, The school I went to Over twenty years ago closed before I could return to finish (back twenty years ago). I tried to dispute this loan but since of the long time, I can’t find or furnish any proof of my side of the story. When I asked for a dispute form “Direct Loans” (who now holds the loan) they sent me one and I completed it to the best of my memory. Which is not all that great!. Anyway, there answer (reply) does not match what I recall about this loan and I know I should not be paying this back. The school I attended was a “Scam” and I was so young then and had no idea. How can I get proof and where did the Direct Loan Company get there’s. There is more to this story but it is too long to write. Can you please help me?
moniqueleonard said,
February 2, 2009 at 8:44 am
Hi Rebecca,
Direct Loans in the federal government loan program. You’ve essentially borrowed money directly from the government as opposed to a private bank.
Do you have proof that your school was a scam? You’ll need that to dispute the loan. Try checking old newspaper records in that area. When a school closes in disgrace, it undoubtedly makes the local paper.
Without proof, there’s not much you can do, unfortunately. You can always try contact your Senators/Representatives in Congress for help.
Penny said,
February 4, 2009 at 1:30 pm
I am the co-signer of a Sallie Mae loan I signed for someone’s freshman daughter. My adult friend, (the mother) also has a loan from Sallie Mae. Has anyone heard of a consolidation program that would combine the mother’s and daughter’s loan as one.
moniqueleonard said,
February 4, 2009 at 1:32 pm
Hi Penny,
Generally, people are not allowed to consolidate loans together. As you are the daughter’s co-signer, you can look into getting yourself released from the loan, though I’m not sure if Sallie Mae offers that service. Some lenders will release a co-signer after 2 or 3 years of on-time payments.
Caius said,
February 13, 2009 at 12:02 pm
Hi there…
My situation is a little different…I completed an education degree, only to find that a drug charge from 14 years ago (when I was 19) will not allow me to acquire a teachers certification. Have tried to find other fields in which I can utelize these skills…but keep running into closed doors. Student loans are stacked up, and I have no viable employment. Someone mentioned that there was a program for people who were unable to work in their field. Ever heard of anything like that? Or, do you have any suggestions?
Thanks in advance for your time!
Brian said,
April 15, 2009 at 8:19 am
My wife has a masters in special education, and was working and repaying her loans no problem. In the last two and half years she has had to stop working for a few different reason, her own health (but not disablitly) and to take care of our two kids, one who is deaf and autisic, and the other who has a milder form of autism. We are hoping in the future that she will be able to go back to a wage earning job. We have used up all the financial hardship, and almost through forebance. Is there any type of deferment or forgiveness for parents with children with disabilities. My income is enough to pay the bills and all the other things we need for the kids.
moniqueleonard said,
April 20, 2009 at 7:04 am
Brian,
I’m not aware of any programs specifically tailored to people whose children have disabilities. I assume you’re members of support groups for parents of autistic children? I’d start by asking questions there as you’re looking for such a specific program.
Trisha said,
May 19, 2009 at 1:58 pm
I am a missionary serving through a non-profit organization in Louisiana. I am interested in knowing is there a student loan forgiveness program for this area. We work with the poor through various areas such as education, medicine, health care programs, etc. Thanks for any information.
moniqueleonard said,
May 20, 2009 at 7:30 am
Trisha, I’m not aware of any forgiveness programs for religious services or charities. I know there are programs for Peace Corp and Americorp, possibly other 501-3c charities. If yours is 501-3c certified, then it might be worth looking into.
Please note that this is not a magic solution – most forgiveness programs require you to make 5-10 years of on time payments before you qualify.