|
| Student Loans |
Graduate and professional students borrow more, with the additional debt for a graduate degree varying from $27,000 to $114,000.
Grants, scholarships, work-study and other forms of gift aid just do not provide the full cost of a college education. Many students have to use additional aid such as government and private loans. The Federal education loan programs propose lower interest rates and more flexible repayment plans than most consumer loans. They are very attractive for borrowers. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
Loan Forgiveness
The federal government can cancel all or part of an educational loan under certain circumstances. This is known as Loan Forgiveness. To qualify, you must:
Eligibility
You must perform volunteer work;
You may perform military service;
You must teach or practice medicine in certain types of communities;
There can be other criteria required by the forgiveness program.
Volunteer Work
These volunteer organizations propose loan forgiveness:
AmeriCorps. Serve for 12 months and receive up to $7400 in stipends plus $4725 to be used towards your loan.
Peace Corps. Volunteers may defer Stafford, Perkins and Consolidation loans and partial annulment of Perkins Loans (15% for each year of service, up to 70% in total). Volunteers serve two years in more than 70 developing countries. They make a real difference in the lives of real people.
Volunteers in Service to America (VISTA). Volunteer with private, non-profit groups that help extirpate hunger, poverty, homelessness and illiteracy. Provide 1700 hours of service and receive $4725.
Military
Students who are in the Army National Guard may apply for their Student Loan Repayment Program, which provide up to $10,000.
Teaching
The federal government can forgive you a portion of loan under The National Defense Education Act if you become full-time teacher in an elementary or secondary school that serves students from low-income families. This program forgives 15% of your loan for the first and second years of teaching service, 20% for the third and fourth, and 30% for the fifth.
|
|
