2013 STUDENT LOAN FORGIVENESS

Taxpayers pay millions for fed workers' student loans

Congress established the student loan repayment program in 1990 for federal employees as a way to recruit and keep good workers. The program was not implemented for more than a decade. Congress extended the program to Senate staffers in 2002, once …
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An education loan is the only option for many students wanting to undertake college eduction. Often this loan runs into hundreds or thousands of dollars. An eduction loan can therefore be stressful on college graduates, especially since most students take up jobs with entry-level salaries. In such a scenario, the burden of the loan increases.

To ease the burden, graduates can opt for a Student Loan Forgiveness/ Repayment Program. This is a method for reducing the repayable amount thereby making it easy for students to overcome debt. These programs can help in eliminating the debt by a few hundred/thousand dollars in return for choosing certain careers, voluntary work or even military service.

What are Loan Forgiveness & Repayment Programs?

A loan forgiveness programs is backed by the Federal Government. According to this program, if a student fulfills certain criteria, a part of the loan amount or the entire amount payable, may be waived.

A student loan repayment program is different from a loan forgiveness program. This program may be used to reduce any type of loan. It enables the provision of additional funds, through which a student can repay his loan. Sometimes, the payment is directly made to the lender on behalf of the borrower.

Both programs are extremely helpful in student loan debt management. However, the amount eliminated under these programs is considered as a taxable income. While this may be discouraging, these programs are quite beneficial, and carry more value than the tax incurred through them.

If you do not want the repayments to be taxable, it is better to opt for student loans which provide for forgiveness. But this provision is available only when you work with certain professions and for certain employers for a required time period. For example, loan repayments under National Health Service Corps (NHSC) program are tax-free. Likewise, state programs which qualify for funding from the Public Health Services Act are considered tax-free.

Here is a list of institutions that provide the option of reducing/ eliminating student loans:

The American Federation of Teachers

The Association of Medical Colleges

The American Bar Association

AmeriCorps

Peace Corps

A student loan debt management programis a resourceful tool to reduce debts. Make sure that you avail these benefits. Choose your option wisely. If you want additional provisions, opt for the programs which offer them. There might be some expenses in the form of taxable income. However, from a broader perspective, the program is more profitable and outweighs the costs incurred.

 

Washington, DC (PRWEB) June 04, 2013

With graduation season upon us, the Student Loan Alliance (SLA) is encouraging recent and soon-to-be college graduates with student loans to visit StudentLoanHelp.org for assistance with evaluating their repayment options.

StudentLoanHelp.org is a new resource launched by the SLA to help borrowers assess their student loan options. There are numerous repayment alternatives for federal student loans, from deferment to consolidation to Pay As You Earn the student loan forgiveness program recently introduced by the Obama administration but not all borrowers are familiar with these programs and many do not take advantage of plans that could help them better manage their debt.

Particularly for students who cannot find a job after graduation, it is critical that borrowers explore their options early on, said Student Loan Alliance President Larry Gilmore. Once a student loan defaults, borrowers lose their eligibility for flexible alternatives such as deferment, the new student loan forgiveness program, and the income-based repayment plan.

Rising levels of higher-educational costs and student loan debt combined with fewer high-paying job opportunities for recent graduates has made it more challenging than ever before for borrowers to successfully fulfill their student debt obligations. According to a recent study by the New York Fed, the delinquency rate for student loan borrowers in repayment climbed to over 30% last year. The same study showed that those with delinquent student loans are also more likely to be past due on other types of debt.

Time and again we see high student loan balances set off a domino effect where borrowers start to fall behind on other debt payments because their budget is stretched too thin, said Gilmore. Beyond just providing education about student loan repayment, the SLA also offers borrowers an opportunity to address any other financial concerns.

At StudentLoanHelp.org, borrowers can view a breakdown of their potential repayment options after answering a series of questions about their student loans. If they are interested in further assistance, consumers can request a counseling session with one of the SLAs participating nonprofit credit counseling agencies. During the one-on-one counseling session, a certified student loan advisor will work with the consumer to complete a budget, review their student loans, and develop a personalized action plan for managing their debt.

As one of the founding members of the Student Loan Alliance we are pleased to help borrowers navigate their student loan repayment options, said Todd Emerson, Springboards President and Chief Executive Officer. Springboard is in the business of helping people and we are equally excited about leading the charge nationally to help borrowers challenged with excessive student loan debt receive comprehensive holistic financial counseling, education and assistance, said Emerson.

More information about the SLA can be found at StudentLoanAlliance.org. Student loan borrowers are welcomed to visit StudentLoanHelp.org.

The Student Loan Alliance (SLA) is a nonprofit organization representing the 9 largest consumer credit counseling organizations across the country focused on developing long-term solutions to address the student loan crisis. The participating organizations are: Consumer Credit Counseling Services of Dallas, Consumer Credit Counseling Services of San Francisco, Clearpoint, CredAbility, GreenPath, Money Management, Inc., Novadebt, Springboard Nonprofit Consumer Credit Management, Inc. and Take Charge America. Alliance members deliver efficient counseling and timely assistance by implementing best-in-class systems and processes. The SLA is committed to addressing the crisis by promoting partnership, developing effective outreach and awareness campaigns, and providing streamlined education and counseling.








An education loan is the only option for many students wanting to undertake college eduction. Often this loan runs into hundreds or thousands of dollars. An eduction loan can therefore be stressful on college graduates, especially since most students take up jobs with entry-level salaries. In such a scenario, the burden of the loan increases.

To ease the burden, graduates can opt for a Student Loan Forgiveness/ Repayment Program. This is a method for reducing the repayable amount thereby making it easy for students to overcome debt. These programs can help in eliminating the debt by a few hundred/thousand dollars in return for choosing certain careers, voluntary work or even military service.

What are Loan Forgiveness & Repayment Programs?

A loan forgiveness programs is backed by the Federal Government. According to this program, if a student fulfills certain criteria, a part of the loan amount or the entire amount payable, may be waived.

A student loan repayment program is different from a loan forgiveness program. This program may be used to reduce any type of loan. It enables the provision of additional funds, through which a student can repay his loan. Sometimes, the payment is directly made to the lender on behalf of the borrower.

Both programs are extremely helpful in student loan debt management. However, the amount eliminated under these programs is considered as a taxable income. While this may be discouraging, these programs are quite beneficial, and carry more value than the tax incurred through them.

If you do not want the repayments to be taxable, it is better to opt for student loans which provide for forgiveness. But this provision is available only when you work with certain professions and for certain employers for a required time period. For example, loan repayments under National Health Service Corps (NHSC) program are tax-free. Likewise, state programs which qualify for funding from the Public Health Services Act are considered tax-free.

Here is a list of institutions that provide the option of reducing/ eliminating student loans:

The American Federation of Teachers

The Association of Medical Colleges

The American Bar Association

AmeriCorps

Peace Corps

A student loan debt management programis a resourceful tool to reduce debts. Make sure that you avail these benefits. Choose your option wisely. If you want additional provisions, opt for the programs which offer them. There might be some expenses in the form of taxable income. However, from a broader perspective, the program is more profitable and outweighs the costs incurred.

 

If you got your student loan in the past for your college education, there will come a time when you need to pay for this loan. When this time comes, you might not have the right amount of salary to pay for your student loan, but you do not have to frown or worry, because there are ways on how you can get student loan forgiveness. All you need to do is to pray for you to gain the right knowledge that you need for acquire loan forgiveness. You can avail this kind of loan forgiveness, if you are qualified and eligible.

 

In order for you to become eligible, you need to make sure that your student loan is federal student loans. This is an important aspect for you to get the loan forgiveness that you need. There is no magic wand that can wave off your loan or debt. You need to exert hard work in order for you to get the forgiveness that you need. It is important for you to know that this forgiveness will not forgive your entire student loan just a part of the loan will be forgiven. Here is the following eligibility requirements that you need to look out.

 

You can will eligible for student loan forgiveness if you will do a lengthy volunteer work from these following volunteer groups such as AmeriCorps, Peace Corps, and Volunteers in Service to America or also known as VISTA. If you are willing to work under these volunteer programs, then the group will be very willing to pay at least half of your student loan. You have to be aware that you need to dedicate specific amount of time in order for you to be eligible for this kind of opportunity of loan forgiveness.

 

You can also avail loan forgiveness for your federal student loan if you are working within the military such as the National Guard.

If you want to willingly serve into the military, then your student loan will be forgiven. If you are a teacher in low-income areas including the state of Mississippi, you can avail the student loan forgiveness. It is important for you to contact the American Federation of Teachers in order for you to get the latest eligibility list. If you will work within the field the medical, then you are also eligible for the partial repayment of your student loan most especially if you are working with National Health Service Corps. You can double check with the Nursing Education Loan Repayment Program to know your chances of availing this loan forgiveness.

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