The headache of student loans: the main reason why students are able to attend college, and the main reason why students decide not to attend college. Student loans are a good thing to take care of college costs and expenses, but when it is time to pay the loans back, things can get a little difficult. If you are among the lucky group of college students who find good jobs straight out of college or who are able to afford student loan payments after graduation, then congratulations! You are able to do something that the majority of freshly graduated college students are not able to do. It is very important to find a way to have your student loans forgiven. Keep reading for more information on student loan forgiveness.
Ways to Student Loan Forgiveness
There are a few ways to either completely eliminate or decrease the amount of the student loans you have to repay. Some of the ways depend on what you graduate with and your job coming straight out of college. Here are the ways to have your student loans forgiven.
· Participate In Volunteer Work.
There are a few volunteer programs that will allow you to lend your time to their organization in exchange for having your student loans forgiven. Some of the organizations that allow this are the Peace Corps and AmeriCorps. These programs forgive up to 70% of your student loans.
· Work In The School System.
For graduates that used the Perkins Loan, working as a full-time educator in an area with low-income families could qualify you for having your loans forgiven. As your teaching years increase, so can the amount of your loans being forgiven.
· Sign Up For The Military.
Having your student loans forgiven is one perk of being a part of the military. As of right now, the Navy, National Guards (both Army and Air Force), the Air Force, and the Army have programs that offer repayment of loans for up to $20,000. Not all branches of the military offer such programs. If you decide to join the Marines, Coast Guards, or Air Force Reserves, you will not be offered any programs to help forgive your student loans.
· Work as a Lawyer or a Doctor.
Working toward a medical or legal degree could rack up a lot in college costs because you are in school for quite a few years over the normal 4 to 5 year college attendance. Because of that, there are some ways to get your loans forgiven by being a medical or legal professional. Programs like the National Institute of Health, the National Health Service Corps Loan Repayment Program, and the Association of American Medical Colleges offer chances to have your student loans forgiven.
· Wait 20 To 25 Years For Another Loan.
If you used a federal loan and are currently making payments based on your income, you may be eligible for forgiveness after 20 to 25 years but only if you work a job in public service. Typically, all federal loans are able to be forgiven, except the Parent PLUS loans and loans that are in default.
There are more ways to get your student loans forgiven.
Who is Responsible?
If you have been selected as an eligible candidate to have your student loans forgiven, someone still has to be responsible for repaying the loan. Here is where the taxpayers come into play. Whenever the government allows forgiveness for your student loans, taxpayers become responsible for paying the loans. So, you can look at it as the taxpayers having paid for your college education. This is almost similar to your education being funded by government grants. If you have student loans through a private lending organization, the banks other members would be responsible for repaying the loan if the bank deems your student loans forgiven. The amount is repaid by the bank’s members paying more in bank fees and interest.
Negative Impacts of Forgiveness
In some cases, when you have your student loans forgiven, you are required to report the forgiveness on your taxes as income that can be taxed. As a result, you may have an increased liability for the year, meaning that when you do file taxes eventually that year, you will receive a bill to pay. When filing taxes, inform your tax preparer that you have had your student loans forgiven, and ask their opinion. Having your particular student loans forgiven may not require that you have to pay a tax bill when you file your taxes.
Student loans can be a relief when going through college, but an immediate pain when it is time to pay them back. You may find yourself unable to repay the loan or keep up with payments. Luckily, the government offers student loan forgiveness that could help you avoid getting into too much debt with your student loan.