If you are recent graduate, stressed out about paying back student loans and wondering how you are going to make this all work, student loan forgiveness may be an excellent option for your financial future.
There are a vast number of these loan forgiveness programs, from the military to service-type careers to volunteering positions.
The idea is that the organization or governmental body will pay off and/or forgive a part or all of your student loan in exchange for your commitment to working or volunteering in a high need area for a minimum number of years.
The amount of forgiveness can range from a few hundred dollars to tens of thousands of dollars, so finding out about relevant programs is definitely worth the legwork.
Keep in mind that student loan forgiveness may incur a 1040, which means that you may be taxed on the amount that was forgiven as if it was income. Be sure to consult with a tax professional in the year that your loan was forgiven, so that you can set aside money for taxes if necessary.
To find out more about loan forgiveness for various fields and sectors, check out these links:
- Stafford Loan Forgiveness Program for Teachers
- AmeriCorps Volunteer Student Loan Forgiveness Program
- NIH Loan Repayment Options for Doctors and Researchers (up to $35,000)
- Military College Loan Repayment Program (MCLRP)
- Federal Government / Office of Personnel Management Student Loan Repayment Program