Worried About Debt? 6 Ways Your Student Loans Could Be Forgiven
You want to pursue an interest that requires higher education, maybe several degrees, but you might not have tens or hundreds of thousands of dollars sitting in the bank. So, what to do?
To speak plainly, most (if not all) young adults can’t fully afford college on their own. U.S. colleges are notorious for being ridiculously expensive. And if parents aren’t able to assist financially, they have to either (A) grind at their studies to aim for that perfect ACT score and load up on community service to get a scholarship, or (B) simply resign themselves to taking out loans to pay off later in the midst of the glamorous new life chapter titled “Adulting.” Then, when they’re graduated and mentally exhausted, exhaling after commencement with their rectangular paper of achievement, their enthusiastic grandpa or well-meaning uncle eagerly asks, “So, what’s next, grad school?” Brain and bank account both cringe. You might relate to Joe March from Little Women and groan, “I hate money!”
For those who have an educational and career plan for themselves, the financial process to achieve that goal can be overwhelming and exhausting. Especially in the United States, college costs a crazy amount! And that’s just undergrad. Grad school is scary – not just the workload, but the amount of cash that it charges. Upon hearing the words “college” and “grad school,” most people instantly think “debt.”
Unless you’re able to get a Pell Grant or a full-ride scholarship, the odds are you will have to take out loans for college or grad school. I know someone who graduated college with $100K of loan debt! Grad schools can often result in around $250K of loan debt, on top of possible college debt. You might ask, “Is there any way around it, or do you simply settle for a mountain of drowning debt, just because?” I know I did. And going on loan strike – refusing to pay your debt – is not a good plan because it will ruin your credit. We all know how important good credit is in today’s world, for renting an apartment, financing a car, getting a house mortgage, etc.
Loan Forgiveness
The answer – after applying for all available grants and scholarships, of course – is to apply for loan forgiveness, after getting a Direct Loan. There are developments underway in government aid that are centered on income-driven repayment and public service loan forgiveness programs. There are a few requirements, so it’s not always possible for everyone to simply have their loans erased. However, it is a golden opportunity for many! If not the full amount, at least a large portion of your debt could be waived. Even though the majority of people may not know of it, this option is fully legitimate.
The Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loan, if you are working for a government or non-profit organization. Just be sure to check the requirements; you do have to make 120 qualifying payments under an acceptable payment plan and be working full time for an eligible employer (check for qualification). And in the meantime, you could check your options for the best financing options, so you don’t pay more interest than you have to. Do your homework on Direct Loan Consolidation as well.
Sure, you can work during college, doing a remote or freelance job or a job near campus. I worked as a nanny and admissions assistant during college. Some employers like Amazon, Chipotle, and Disney offer tuition assistance as part of their work benefits. There are also often work exchange programs through the institution available for students. But just think: If you apply for a direct loan as well as the loan forgiveness program, you could potentially get credit time towards your loan, some loan debt erased, or even sometimes the full amount canceled! You just have to use a Direct Loan and qualify for at least one of the following options.
If You Work for a Non-Profit
If you work for a non-profit organization, such as a hospital, educational institution, pro-life organization, charity, or public service organization, you can apply for loan forgiveness and receive tuition assistance. Many times, organizations such as a hospital will cover your loans directly or pay your loan debt.
If You Are a Government Employee
If you’re a government employee, then you could get tuition assistance and can apply for loan forgiveness. Especially if you’re in the military, the government might pay your loan debt.
If You Are a Teacher
If you are a teacher, you can apply for loan forgiveness, up to $17,500. Everyone knows that teachers are underappreciated and underpaid, considering the great service they do for society in educating young minds and helping to shape future generations!
If You Will Be a Medical Professional
If you’re studying to be a nurse, doctor, or medical professional, then you can apply for loan forgiveness. You do have to be working for a not-for-profit organization to qualify though. Sometimes hospitals or medical organizations will also cover some or all of what is remaining of your tuition debt!
As with teachers, medical professionals such as nurses and doctors center their whole career around helping people and serving their community. It’s not surprising that there is government financial assistance for those who train to take care of those in medical need!
If You Have a Disability
If you have a disability and are totally and permanently disabled, you can apply for loan forgiveness if you have a Direct Loan, Perkins Loan, or Federal Family Education Loan (FFEL) Program loan. Learn more about applying here.
Pursuing higher education shouldn’t always mean years of paying off loads of loans. Depending on what your career focus will be, it doesn’t hurt to check all your options for financial aid sources!
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