Student Loan Forgiveness Programs

There are several student loan forgiveness programs available. These programs will reduce or eliminate your student loan debt in exchange for years of service. You should not choose a career because you hope to have your student loan debt forgiven. It is more important to select a career based on your interests, skills, and personality. However, if you might qualify for any of the following programs, you should research and apply for that program.

Teacher Loan Forgiveness: If you teach full-time in a low-income school or certain teacher-shortage subject areas, you may be eligible to have a portion of your Stafford or Perkins loans forgiven for each year of service. To learn more, visit http://studentaid.ed.gov.

Child-care Provider Loan Forgiveness: If you work full-time in certain child care facilities that serve low-income families and meet other qualifications, you may be eligible to have up to 100 percent of your student loans forgiven. This federal program is not currently accepting new applications. For information on the program and guidelines visit the loan discharge section of www.studentaid.ed.gov.

Lawyer Loan Forgiveness: Some law schools offer loan repayment programs to graduates who serve in the public interest or work for nonprofit groups. Visit your school’s financial aid office to determine if there is a school sponsored loan repayment assistance program (LRAP) or visit the National Association for Public Interest Law for more information at http://www.equaljusticeworks.org/finance. For information on Arizona loan repayment programs visit http://www.azflse.org.

Doctor Loan Forgiveness: If you agree to practice in communities where there is a shortage of health professionals, you may be eligible to have a portion of your student loans forgiven. The National Health Service Corps, under the Department of Education, will pay up to $50,000 for two years of service, based on your loan balance. To locate your state program visit http://bhpr.hrsa.gov. For information on the Arizona loan repayment program visit http://www.azdhs.gov.

Peace Corps: Offers a loan repayment program that reduces your outstanding debt on Perkins loans by a specific percentage for each year of service. You may also be eligible for a deferment of all federal loans while you serve in the Peace Corps. Visit www.peacecorps.gov to learn more.

Americorps: Offers a student loan payment program of up to $4,725.00 for each term of service. The award amount varies based on the number of service hours. For more information visit http://www.americorps.org/

Armed Forces: Offers loan payment programs for people who enlist in the Army, Navy, or Air Force after college. For each year of military service, a percentage of your student loan balance is paid. Visit www.military.com/resources to learn more on student loan repayment programs.

If you did not find a program listed here, you should also search the Internet for other programs offered through specific employers, state agencies, and the federal government. One federal resource is fedmoney.org, a free search engine for federal grants and loan programs. Important Note: If you hope to have your student loans forgiven, do not consolidate your Perkins loan. If consolidated, Perkins loans become ineligible for loan forgiveness programs.