Loan Forgiveness and Cancellation Programs
There are several federal student loan forgiveness, or cancellation, programs available to Direct student loan borrowers.
If you currently have a public service position or plan to work in public service, you may be eligible to have a portion of your federal Direct loan forgiven. The Public Service Loan Forgiveness program was created on October 1, 2007, to encourage loan borrowers to enter and continue in full-time public service employment by forgiving the remaining balance of their Direct loans after 120 payments were made while they were employed full time by a public service organization. Public service organizations include federal, state, or city government positions as well as not-for-profit organizations.
Click here for more information about the Public Service Loan Forgiveness Program.
If you borrowed a Direct student loan after September 30, 1998, and are a full-time teacher in a low-income elementary or secondary school for five consecutive years, you may be able to have as much as $5,000 of your Direct or Stafford loans canceled. If you are a highly qualified full-time math or science teacher in an eligible secondary school, or if you are a highly qualified special education teacher, you may be eligible to receive up to $17,500 in loan forgiveness.
If you complete an AmeriCorps program, you may qualify for a National Service Education Award of approximately $5,815 for one year of service. This award can be used to reduce your Direct loan debt. Your loans can be placed in forbearance while you work for AmeriCorps, so your payments will be postponed, but interest will be charged.
If you work for AmeriCorps before or while attending Springfield College, you may want to consider using the award towards your Springfield College tuition bill.
If you are a child care provider who meets certain eligibility requirements and you are a new borrower after October 6, 1998, you may qualify for loan forgiveness, if funding is available. For more information, contact your loan servicer.
Direct loans may be canceled if the borrower is determined to be totally and permanently disabled. Any outstanding Direct loan debt may be canceled when the borrower dies.
For more information about loan forgiveness programs, call your loan servicer or visit their website.