Student Loan Forgiveness
One of the greatest opportunities for stressed out college graduates is student “Student Loan Forgiveness” or “Loan Repayment Programs”. These programs offer to eliminate some or all of your student loans in return for choosing certain careers, military service, and even volunteer work. There are several plans available that you may Qualify for and we can help.
Such programs can eliminate anywhere from a few thousand dollars to $100,000 of student loan debt. Ironically, many of these programs receive a relatively small number of applications indicating that many graduates are completely unaware of these opportunities. At the Loan Forgiveness Center, we can show you your options and submit all the paperwork.
Student loan forgiveness programs are those backed by the Federal government and cover loans issued through Federal programs such as Stafford and Perkins student loans. When you participate in one of these programs, portions of your debt are literally erased from your lender’s books. Student loan repayment programs, which are more widespread than forgiveness programs, may be used to eliminate any type of loan excluding private loans.
The amount eliminated under loan forgiveness or repayment programs may be considered taxable income in the year received. In other words, if you have $5,000 in loans forgiven next year, that may increase your taxable income in the eyes of the IRS by an equivalent amount. While that’s never fun, it should’t discourage you from using one of these programs since the benefits far outweighs the cost.
Additionally, any loan repayments made under the National Health Services Corps (NHSC) Repayment Program or any state program eligible for funds from the Public Health Services Act are considered tax-free.
The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, individuals who teach full time for five consecutive, complete academic years in certain elementary and secondary schools that serve low-income families and meet other qualifications may be eligible for forgiveness of up to a combined total of $17,500 in principal and interest on their FFEL and or Direct Loan program loans. (Note: As of August 14, 2008, an otherwise eligible borrower may Qualification for forgiveness if the borrower has provided Qualificationing teaching services at one or more locations that are operated by an educational service agency. Please contact us for Eligibility Requirements.