After taking out a loan to finance your higher education and upon completion of the program you were doing, what next? The reality of having to finance your student loan after the grace period one is awarded sinks in and fast. That is when you realize you need to come up with a plan to service your student loan. There are however programs that forgive student loans. The process of figuring out which student loan forgiveness programs you qualify for is a strenuous one but sure worth it. This does not mean you get to escape student loan debt scot-free, oh no. This is because federal programs require a certain threshold of qualifications to be met.
1. Forgiveness based on what you do
High-need professionals, i.e. teachers, lawyers, medical personnel have an advantage when it comes to student loan forgiveness programs. This is because their services are mostly in demand especially in lower income areas. Through teacher loan forgiveness program, highly qualified teachers who are working in low-income schools or education agencies, for a period of five years qualify for a certain amount of loan forgiveness that is 17500 USD. Medical professionals qualify for up to 40000 USD forgiveness for a commitment of a minimum of two years at a site that provides health care services to American Indian and Alaska Native committees.
2. Forgiveness based on where you live
The state-based program for student loan forgiveness is by far the largest category. These programs have one thing in common, they try to attract professionals from certain fields to relieve shortage usually in low-income areas or even rural areas. In California, the CDA Foundation pays up to 105000 USD for a three-year commitment in dentistry. For a period of up to eight years in Michigan state, you can qualify for a sum of 200000 USD through the Michigan State Loan Repayment if you are in the medical field.
3. Forgiveness based on how you give back
The military loan repayment program is a familiar one. If you join the military, then you qualify for loan forgiveness up to a certain amount. The amount is usually given as per the rank achieved during your service in the military. If the military is not your choice of style, AmeriCorps members are given a certain amount of money depending on the number of years served and program served.