Loan Forgiveness

To qualify for loan forgiveness for a federal education loan, a borrower must commit to certain criteria such as:

Volunteer Work:

• Americorps - Serve for 12 months and receive up to $7400 in stipends plus $4725 to be used towards loan.
• Peace Corps – Join and receive deferment of Stafford, Perkins and Consolidation loans and partial cancellation of Perkins Loans (15% for each year of service, up to 70% in total). 
• VISTA (Volunteers in Service to America) - Provide 1700 hours of service and receive $4725.
  

Teach in certain types of communities:

• Full-time teachers in an elementary or secondary school teaching students from low-income families can have a portion of their Perkins Loan forgiven.
• For more information on forgiveness for teachers, visit the Department of Education website.
  

Public Service Loan Forgiveness
The College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program. This program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. (Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.) For more information, click here