If you are drowning in debt and a big reason is your huge student loan, you are not alone. Luckily, you might be eligible for debt forgiveness. Likewise, if you are about to take on student loan debt and you are concerned you will never be able to repay the money you borrow, there are choices you can make that will affect your repayment obligations.
Many loan forgiveness programs allow you to decrease the total amount of student loan debt owed. This doesn’t completely eliminate the problem, but it makes it possible to repay the money in a reasonable amount of time without sacrificing creature comforts.
If you are currently employed, you can speak to someone in your company’s human resources department about eligible programs. If student loans are just a part of your debt and you have concerns that things have gotten out of control, you will want to speak to a bankruptcy expert.
To qualify for student loan forgiveness in the future or to be eligible for it now, you can:
Students attending college to become teachers can use a Perkins loan that will be forgiven in part once they become full-time teachers in schools serving low income families. The amount forgiven is based on the number of years you work in a particular school. Some states offer additional financial assistance based on the teaching job you accept once you graduate from college.
Practice Medicine or Law
Student loans for medical and legal students are some of the most substantial. Most doctors and lawyer graduated with student loan debt totaling in the six figure range. Those who earn Ph.D.s might be eligible for a variety of loan forgiveness opportunities depending on the field a borrower enters. By conducting certain types of research or providing non-profit legal assistance, you can eliminate a portion of your significant student loan debt.
Some organizations offer loan forgiveness if you commit to a certain period of time volunteering for them. Examples of organizations that do this are the Peace Corps, AmeriCorps, and Volunteers in Service to America (VISTA). Most forgive 70% of your loan amount, so you will still owe a bit of money. Read more about the Peace Corps loan forgiveness program.
Military members in the Army, Army National Guard, Navy, Air Force, or Air Force National Guard receive up to $20,000 in repayment assistance.
Keep in mind money forgiven on a loan is considered taxable income, so you can expect to pay a heft sum come April 15th if a significant portion of your debt is forgiven at one time. It is best to work with a financial advisor when making decisions about loan forgiveness.
If you would like to know more about student loan debt or you are having a difficult time managing your student loan payments, we can help. Contact the Tampa Bankruptcy Law Offices of Robert M. Geller at 813.254.5696 to schedule your consultation.