Federal Student Loan Forgiveness


Four ways you can get Federal Student Loan Forgiveness

What is Federal Student Loan Forgiveness?

This is a program set up by the federal government which decides on whether to completely clear your higher education loan or give you a waiver depending on certain considerations. Once you have cleared campus, you are given six months to come up with ways of paying back your loans. What if after the six months you have no income source? Well, do not be alarmed, probably one of the best things about federal student loan forgiveness is that if you run into financial hurdles, you can opt for forbearance to cease paying your loans until things get back to normal.

How can I get it?

There are several things you can do in order to qualify for this program.

#1 Engage in Voluntary Service

There is no better thing than being a contributor to the welfare of your community. Wouldn’t you be happy to engage in a voluntary service that also helps you settle your debt? Here are some voluntary organizations that guarantee federal loan forgiveness.

Peace Corps: With headquarters in Washington DC, this organization provides volunteers with the rare opportunity to travel to other countries and offer services to communities there. If you get accepted here, you will have a 2 year initial term to serve.

The good thing is that by working here, you are eligible to file for payment of Stafford and consolidation loans deferred. If you have a Perkins Loan, you can get a full deferment or 15% of your loan condoned for every year served up to 70%.

Photo Credit: camera_rwanda via Compfight cc

AmeriCorps: Most people are offered up to a year to serve in this organization. Under this organization, you not only get a $4,725 check to settle your loans but also can earn allowances totaling over $7,000.

Volunteers in Service to America (VISTA): This organization sends volunteers to work in NGOs that operate in areas suffering from illiteracy, poverty and other social issues. If you work here, you are liable for a $4,725 federal loan payment after completing a total of 1700 service hours.

#2 Join the Military

Joining the military is not just about what you give to the nation in the name of patriotism. You can get something in return. The Military and Veteran’s Association has programs that provide assistance in tuition as well as scholarships. On the other hand, by being in the National Army Guard, you may end up getting up to a maximum of $10,000 for your student loan repayment.

Photo Credit: Spencer Batchelder via Compfight cc

#3 Teaching

Under the National Defense Education Act, if you are a teacher you can benefit from a 15% forgiveness of your loan for the first two years of teaching, 20% for the next two years and 30% for the fifth year. However, to qualify for these waivers you must have a Perkins Loan, trained to be a teacher and be teaching in a school where a majority of students come from the low income bracket.

#4 Other Options

If you are in the state of Alaska, and you study law, working as a state trooper offers you a chance to apply for a 20% waiver on your Michael Murphy Loan for every year of service.

The US National Institutes of Health, the US Department of Agriculture and the US Department of Health and Human services also offer repayment programs for federal Student loan forgiveness.


  1. It’s amazing how so many of my teacher friends who work in low-income designated schools never knew about loan forgiveness. When I first posted about it they were excited and quickly started rounding up paperwork and calling their student loan providers. Thanks for sharing these 3 other options.

Speak Your Mind