Complete Guide about Student Loan Cancellation
Student Loan Forgiveness Summary
With the rising cost of postsecondary education today, taking student loans for a large number of students is the only opportunity to achieve college or university education. According to recent reports, student loan debt 2012 on the whole is expected to be $1 trillion in the USA. There are numerous student loan alternatives provided by the federal US government and private loan lenders. Repayment of student loans typically begins six months after student finishes school and goes even to amount of $700 monthly. However, under certain circumstances, students can have their student loans partly or totally cancelled. Different student loan plans qualify for student loan forgiveness option. Your student loans can be cancelled if you are going to work as a professional in some particular occupations like teaching, military service, healthcare and law, in areas in high need such as low-income schools, high need healthcare facility or public interest law.
Important Facts about Teacher Loan Forgiveness Program
What You Need to Know About Teacher Loan Forgiveness Application 2012
Teacher loan forgiveness program (TLFP) is a loan cancellation program initiated by the US Congress with the goal of rewarding individuals who decide to work as school teachers in particular high-need areas and to encourage them to keep working in teaching profession. To qualify for a federal loan forgiveness program, applicants have to work on full-time basis as teachers for five consecutive years in schools which are designated as low-income schools because they serve low-income families, which means that more than 30% of their students come from these families. A list of authorized schools is available online in the Teacher Cancellation Low Income Directory on the Department of Education’s website. The Department of Education publishes the list of designated school boards every year.
Federal Stafford Loans and TLFA Application 2012
Teacher loan forgiveness 2012 is available under Federal Stafford Student Loan plan. Stafford Loan forgiveness program for teachers is designated to help people entering teaching profession. To qualify for the Stafford Loan Forgiveness Program applicant must be employed on full-time basis as a teacher for at least five succeeding academic years in an elementary or secondary public or private nonprofit school that was designated a “low-income” school by the Department of Education; his/her teaching service must have began on or after October 30, 2004 and his/her loan must be taken after October 1, 1998; must have no less than one of the teaching years after the 1997/98 academic year. Teachers of secondary school subjects math and science or teachers of special education who work with disabled children also are eligible for the forgiveness maximum to $17,500.
Teacher Loan Cancellation 2012 with Perkins Loans Plan
Perkins Loan Cancellation Program allows teachers to get their student loan forgiveness benefits gradually, which means that 15% of teacher’s Perkins Loan is canceled after first two years of their teaching career; twenty percent gets canceled after third and fourth year of teaching and thirty percent after the fifth and any year after that. Practically the same as with the Stafford Loans, to be eligible for the Perkins Loan forgiveness program applicant must have worked on full-time basis as a teacher for at least five subsequent academic years in an elementary or secondary public or nonprofit school that was nominated a “low-income” school by the US Department of Education; have taught in the subjects of science, math, bilingual education and foreign languages or in a subject designated as a teacher deficit area by the state education agency or have worked as a special education teacher.
How to Apply for Teacher Loan Forgiveness 2012
Loan forgiveness for teachers application 2012 takes a few steps to complete in case that you qualify for your student loans cancellation. First, you must get your teaching verification from your school administrator. Then you have to fill out online Teacher Loan Forgiveness Application Form on the Department of Education website before you submit your application. The next step is to send your application to the Department of Education or to your loan servicer for the further processing. If your student loan provider finds that you qualify for teacher loan forgiveness program, you will be sent a confirmation for the forgiveness amount.
Sallie Mae Teacher Loan Forgiveness
Teacher loan forgiveness 2012 is available under the Sallie Mae loan forgiveness option. In order to qualify for Sallie Mae loan forgiveness for teachers, borrower must meet some of the following criteria: He or she must work in a recognized low-income public school or private non-profit school for at least five following years; must teach one of vital need study area, like math, science or bilingual courses; must work as a special education teacher with disabled children or in early childhood programs. In addition, to qualify for Sallie Mae loan forgiveness for teachers, you must make at least 120 required payments under one of Direct Loan repayment plans.
Sallie Mae teacher Loan Forgiveness Application
To apply for Sallie Mae teacher loan cancellation, you must provide your teaching certification from your school’s administration and fill out a forgiveness application form online on the Department of Education website. After your loan forgiveness application is completed send it to your loan servicer for the further processing. If your loan provider finds that you are eligible for student loan forgiveness, you will be mailed verification for the loan forgiveness balance.
Georgia Teacher Forgiveness Loans
Some US states like Georgia provide their own programs for teacher loans cancellation. If you work as a foreign language teacher in Georgia, you can also benefit from this program, since foreign language teachers are eligible to apply for TLFP in this state, which opens doors to more individuals who are employed as teachers to get their loan forgiveness.
Loan Cancellation Debt Relief
Educational debt relief programs help public interest students to get their student loans cancelled. Equal Justice Works’ Educational Debt Relief program provides information and assistance that can help you make decisions about your chosen career path. Familiarity with available forgiveness and relief programs such as Public Service Loan Forgiveness or Income-Based Loan Repayment can help you manage your finances and overcome eventual financial crisis. People who are working as social workers or serving through the Peace Corps, AmeriCorps or the VISTA program, can have a part of their student loan debt cancelled as a in exchange for some years of service.
Obama Student Loan Forgiveness
Obama’s student loan forgiveness program is beneficial to student loan holders who are faced with the overwhelming student loan debt situation. Eligibility criteria for Obama loan forgiveness is based on person’s career and you may qualify if you are volunteer, military recruit, teacher working in public school, or working in medical or legal related profession. Under Obama loan forgiveness program students will have to repay only 10% of their student loan and their debt will be forgiven after twenty years or even after ten years if they go for career in public service. Borrowers who participate in this loan forgiveness program pay a lower monthly payment based on income, family size, and loan amount as long as the monthly payment is lower than what would be paid on a standard 10-year repayment plan, which is in fact modified Income-Based repayment plan.
Obama loan forgiveness plan applies to student loans obtained through the Federal Direct, Stafford, and Perkins student loans. Unfortunately, the program doesn’t apply to private student loans.
Obama Loan Cancellation for Volunteers
If you are going to volunteer, you will be able to get your student loan forgiveness in exchange of service for a specified period of time.
Obama Loan Forgiveness Military Opportunities
Military personnel can also benefit from this loan cancellation program which is applicable to all branches of the military: Army, Navy, Air Force, Coast Guards, and Marine Corps. National guards and those under the Reserves list can also participate in Obama loan cancellation military program.
Obama Loan Forgiveness for Teachers
If you work as a teacher in one of designated low-income public elementary, middle and high schools you are eligible to apply for Obama teacher student loan forgiveness plan. List of designated low-income schools is published by the Department of Education every year.
Obama Loan Forgiveness for Legal and Medical Professions
In case you are going to work in legal or medical related profession, you can also benefit from the program.
All of these student loan forgiveness opportunities are very beneficial to students and those who still are paying off their student debts. However, there could be a few downsides connected to loan cancellation. First, the overall amount of interest paid on the loan could grow given that it will take more time to pay off the loan. Also, the amount of your loan could increase if your monthly payments aren’t high enough to cut the interest. Furthermore, since the amount of your loan forgiven is taxable, you could owe tax if it’s more than $600.
But overall, it can be said that student loan forgiveness advantages outweigh the drawbacks of the program and in case you find that you are eligible for student loan forgiveness application 2012 it is recommended to take that advantage.