Loan forgiveness and/or cancellation of debts and loans are granted by the federal government if you meet certain qualifications.
These include if you agree to perform volunteer work, do military service, teach, practise medicine in certain types of communities, or meet other forgiveness program criteria.
Examples of volunteer work include serving for one year in AmeriCorps, serving in the Peace Corps, or giving 1700 hours of service to the Volunteers in Service to America.
Military service requires joining the Army National Guard.
If you become a teacher who works in low-income neighborhoods, 15% of the Perkins Loan will be forgiven the first year, 20% for the third and fourth year, and 30% for the fifth year of teaching.
Law schools may forgive student loans who service in non-profit positions, or to physicians who agree to practise for a specific number of years in remote areas. Hospitals and healthcare institutions offer loan forgiveness as well.
Here are the qualifications required in order to have a student loan cancelled totally or partially according to Stafford Loan.com:
* The school closed within 90 days of your enrollment and they were unable to finish their program of study.
* The school did not properly qualify your status before they began studies.
* You did not receive a refund that was due to you.
* Your signature was forged.
* The school did not properly evaluate your ability to benefit from the coursework before beginning studies.
* You become totally and permanently disabled.
* If you or the dependent for whom the loan was borrowed, dies.
* Your loan is discharged due to bankruptcy. (Typically, student loans cannot be discharged in a bankruptcy.) Consult your legal counsel regarding your particular situation.
Conversely, you do not qualify for loan forgiveness if the school:
* Provided poor training, had unqualified instructors, or inadequate equipment
* Did not provide job placement or other services that it promised
* Engaged in fraudulent activities (other than falsely certifying the loan)
* If you believe you are eligible for loan forgiveness
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