Loan Forgiveness

   LOAN FORGIVENESS

Under certain circumstances, the federal government may cancel a student’s loan partially or fully, as far as it’s a Stafford Federal Loan, a Plus Loan, a Perkins Loan or a Consolidation Loan. This is known as Loan Forgiveness.

In order to access this kind of benefit, the student must either:

• Do voluntary work.

• Enrol for Military Service.

• Be a teacher or doctor in certain underprivileged communities.

Organizations offering Loan Forgiveness:

AmeriCorps.

Work is carried out during 12 months and the student gets up to USD 4725 for university or repayment of his or her student loan. Their phone number is 1-800-942-2677 and their e-mail is questions@americorps.org

Peace Corps.

Volunteers working in this organization may request a delay or deferment in the repayment of their Stafford, Perkins and Consolidation loans. Perkins loans can even be partially cancelled (15 % per service year).

Volunteers work in over 70 countries around the world helping community development, education and health. Their phone number is 1-800-424-8580 ó 1-202-692-1845 or you can find out their details online.

Volunteers in Service to America (VISTA).

Volunteers do 1700 hours of community service: helping the poor, the homeless, the illiterate… They get USD 4725 for their service. Their phone number is 1-800-942-2677 or 1-202-606-5000.

Military Service

Students at the Army National Guard are eligible to the Student Loan Repayment Program, which offers up to USD 10000. Also military and veteran associations provide grants and tuition aid programs.

Teaching

Students taking part in underprivileged children teaching programs (primary or secondary collegeing) can obtain partial or total loan cancellation (Federal and Perkins loans). You can get information at the administrative offices. Every year the US Department of Education publishes a list of primary and secondary colleges considered as providing service mainly to underprivileged communities. Any comment or question on the inclusion or non-inclusion of a particular college should be addressed to the representative of the State education agency in the college’s state, not the US Department of Education.

Program contact information and Internet resources:

Consumer Services,

Department of Education,

Child Care Provider Loan Forgiveness Demonstration Program Customer Service

P.O. Box 4639

Utica NY 13504-4639

Website:

http://studentaid.ed.gov/PORTALSWebApp/students/spanish/teachercancel.jsp?tab=repaying

Toll free phone number: 888-562-7002

Medicine and law

Some law colleges cancel their students’ loans if they work for public or non-profit organizations. You may get informed at the National Association for Public Interest Law (www.napil.org) (1666 Connecticut Ave., Suite 424, Washington, DC, 20009; Phone 1-202-466-3686).

The US Department of Health and Human Services offers loan repayment programs through the National Health Service Corps and the Nursing Education Loan Repayment Program. These programs cancel loans for doctors and nurses as far as they agree to work for several years in isolated or economically underprivileged areas where medical services are insufficient.