Guide to College Financing Chapter: 1 2 3 4 5
Loan Forgiveness
Did you know that you can have some, or all, of your student debt cancelled by performing volunteer work? Sounds good, right? But don't expect it to be easy; a year of service in the Peace Corps might make the game of Survivor look like a vacation.
Did you know that you can have some, or all, of your student debt cancelled by performing volunteer work? Sounds good, right? But don't expect it to be easy; a year of service in the Peace Corps might make the game of Survivor look like a vacation.
Introduction to loan forgiveness
Loan forgiveness programs give you the option of paying off your student debt with volunteer work, military service, or qualifying professional work. Essentially, if you perform the qualifying duties, the government will cancel all or part of your student debt.
A 12-month stint with AmeriCorps, for example, earns you $7,400 in stipends plus a $4,725 credit to your loans. The Volunteers in Service to America (VISTA) offers a $4,725 loan credit in exchange for 1700 hours of service. Or you can volunteer with the Peace Corps for a year, and work off 15 percent of your loan balance.
Other qualifying activities include teaching in low-income areas, serving with the Army National Guard, practicing law with non-profit organizations, or medicine in economically depressed regions.
For more information about forgiveness programs, visit "Student Aid on the Web" at www.studentaid.ed.gov. Your school and employer may also have some additional information on programs offered.
Paying for college is an investment in your future. As costs continue to rise, motivated students like yourself need to juggle expenses, tap into resources, and basically do what it takes to survive. In the end, you'll be rewarded-maybe not with an immediate $1 million, but certainly with the potential to earn that much more over your lifetime.
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