Federal Student Loan Forgiveness

You need information on Federal Student Loan forgiveness; because in the new millennium, it's not uncommon to graduate and be $100,000 or more in debt the day you receive your diploma. It makes economic sense to pursue to a college degree. Studies consistently show college grads earning more over a lifetime than non college grads.

However, when you're 24 years old and $100,000 or more in debt, it raises questions about the debt/education gamble. This question is currently being debated in government and acdemia.

For the moment, consider the side effect of the unintended consequences of Federal and private Student Loan Debt.

Federal and private student loan debt (with consolidation) is now comparable to mortgage loans, taking fifteen to thirty years to pay off. One side effect in 2008 are forty somethings' finally paying off their college loans from the 80's and 90's.

An easily envisioned unintended consequence is:

A couple at meet at university and get married. Their combined college debt is $250,000 or more. If it takes 25 years to completely pay off their college loans, they could have teen age children entering college, just as they're paying off their own student debt acquired twenty years earlier.

The argument for college loan debt is that a rising tide of career success will lift the economic fortunes of the graduate to such lofty heights that he/she will easily pay the debt load. Perhaps.

This article raises questions for which there are no convenient answers. It also suggests starting a Multi Level Marketing Business and seeking Federal student loan forgiveness to pay student debt. In other words, do everything possible to rid yourself of the crushing debt of student loans.

Federal Student Loan Consolidation

Whether or not you qualify for federal student loan forgiveness, consider consolidating your student loans. By consolidating and stretching out the repayment term from 10 to 30 years your repayment burden will be easier. But, you will probably pay twice the amount over the longer term.

Federal Student Loan Forgiveness or Cancellation

Federal Student Loan Forgiveness is far from a cure all. The federal government will cancel all or part of an educational loan, only on certain conditions:
• Perform volunteer work;
• Perform military service;
• Teach or practice medicine in certain types of communities; or,
• Meet other criteria specified by the forgiveness program.

Volunteer Work

The following organizations offer federal student loan forgiveness:

www.americorps.org: Serve for 12 months and receive up to $7,400 in stipends plus $4,725 to be used towards your loan.

www.peacecorps.gov: Volunteers travel overseas to make real differences in the lives of real people. Volunteers may apply for deferment of Stafford, Perkins and consolidation loans and partial cancellation of Perkins Loans (15% for each year of service).

www.americorps.org: VISTA is the national service program designed specifically to fight poverty. Founded as Volunteers in Service to America in 1965 and incorporated into the AmeriCorps network of programs in 1993.

Military

Students who are in the Army National Guard may be eligible for their Student Loan Repayment Program, which offers up to $10,000. (Note, the military and veterans' associations provide many scholarships and tuition assistance programs. See the section on Military Aid for details.) This practice is comparable for federal student loan forgiveness.

Teaching

Students who become full-time teachers in an elementary or secondary school that serves students from low-income families can have a portion of their Perkins Loan forgiven under The National Defense Education Act. This program forgives 15% of your loan for the first and second years of teaching service, 20% for the third and fourth and 30% for the fifth. Contact your school district's administration to see which schools are eligible for federal student loan forgiveness.

Legal and Medical Studies

Many law schools forgive law school loans of students who serve in public interest or non-profit positions. Contact the National Association for Public Interest Law (1666 Connecticut Ave., Suite 424, Washington, DC, 20009; 1-202-466-3686).

Similarly, groups like the National Health Service Corps offer medical school loan forgiveness programs to physicians who agree to practice for a set number of years in areas that lack adequate medical care (including remote and/or economically depressed regions). If you're a California resident, contact the Office of Statewide Health Planning and Development (State Loan Repayment Program, Primary Care Resources and Community Development Division, 1600 Ninth St., Room 440, Sacramento, CA 95814; 1-916-654-1833), or a similar agency in your state.

Many hospitals and private healthcare facilities use loan forgiveness to recruit occupational and physical therapists. Contact the American Physical Therapy Association (1111 North Fairfax St., Alexandria, VA 22314-1488; 1-800-999-2782) or the American Occupational Therapy Association (P.O. Box 31220, 47200 Montgomery Lane, Bethesda, MD 20824-1220; 1-301-652-2682)

Consider Starting A Multi Level Marketing Business

The primary benefit of this kind of business is that it cost very little to start (typically under $500).

However, this method of reducing student debt is not for everyone. If you need to make a lot of money in a very short period of time, a multi level marketing business is not the solution. Try the lottery.