Are you teaching? Or working in public service? There are specific programs available that may allow loan forgiveness or cancellation of your federal student loans. Please read this information carefully. Some initiatives will be subject to federal funding or the forgiveness part applies out in the future, at the end of the 10-year repayment period.
Cancellation/Deferment Options for Teachers
If you're a teacher serving in a low-income or subject-matter shortage area, it might be possible for you to cancel or defer your student loans. Learn more about the Teacher Loan Forgiveness Program.
Public Service Loan Forgiveness Program
Through the College Cost Reduction and Access Act of 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers. Since borrowers must make 120 monthly payments on their eligible federal student loans beginning after October 1, 2007 before they qualify for the loan forgiveness, the first cancellations of loan balances will not be granted until October 2017.
The borrower must be employed full time (in any position) by a public service organization, or must be serving in a full-time AmeriCorps or Peace Corps position. For purposes of the Public Service Loan Forgiveness Program, the term "public service organization" means -
