Cancellation of all or some part of the educational loan under certain circumstances or conditions rendered by the federal government is what school loan forgiveness connote. Inshort, forgiveness is a practice in which an individual has to serve the public in order to waive off some or whole of the school loan.
In order to qualify for forgiveness certain eligibility criteria is set. This includes- serving the military, doing voluntary work, to teach or practice medicine in selected communities’ etc. School loan forgiveness is designed specifically for students so that they are able to achieve their educational objectives. By doing so, this will help them get stable jobs in particular occupations.
However, it is only applicable if the student takes up educational loan under the Federal Family Education Loan Program (FFELP).
The school Forgiveness Program is applicable to few selected fields/programs or professions these include,
- Federal Child Care Provider Loan
- Federal Teacher Loan
- Armed Forces Loan
Apart from this, there are certain private, non-profit organizations that are affiliated with the Federal Family Education Loan program. This affiliation gives them authority to offer school loan forgiveness to students provided that they fulfill certain work-related requirements.
School loan programs:
Forgiveness programs are being offered to teachers to nurses to young doctors as well as lawyers and Peace Corps.
For teachers who are working at low-income schools such as elementary school or secondary school may avail the school loan forgiveness program and cancel up to $5,000 of their Federal Stafford loan debt.
For young professionals serving as doctors and lawyers, forgiveness can prove to be a blessing in disguise as they are burdened with a debt that ranges from $50,000 to $100,000 which is very common.
The National Health Service Corps offer forgiveness to the students enrolled in medicinal programs on the basis that they serve the communities for two years. By availing this program they can wipe out as much as $25,000 every year.
Moreover, the same offer is also valid and open to lawyers or legal advisors who pursue their career at public legal firms. Around fifty law schools are offering school loan forgiveness programs.
Equal Justic Works, formerly known as National Association of Public Interest Law, has a list of schools on its website that offer school loan forgiveness program. By not availing school loan forgiveness many legal representatives can not practice at low-paying public interest law firms.