Managing Student Loans

If you have outstanding student loans that came from the federal government or were issued by a loan company on behalf of the federal government, you may be able to have some or all of those loans forgiven.

Private student loans are a totally different type of student loan, so this article covers only federal student loans and potential ways to have them forgiven.

Having a federal loan forgiven means that the student is no longer responsible for the loan and no longer needs to pay the loan back. Forgiving a student loan is different from having a student loan deferred or having it consolidated. A forgiven federal loan will never need to be paid back.

So how can you have a federal student loan forgiven?

The good news is that there are still ways to have a government issued school loan partially or fully forgiven. The bad news is that not all students will be eligible for having their loans forgiven.

Working certain jobs makes you eligible.

One of the primary ways that a student can become eligible for student loan forgiveness is by working a job in a certain sector or field. The federal government will forgive certain loans for many individuals who work in areas such as public service, non-profit work, military work, social work, education, the medical field, and government offices.

It can be tricky to find exactly which job field will allow you to have a federal loan forgiven, the best way to find this information will be to ask potential employers if the position is eligible for loan forgiveness. You can also speak with the company that is issuing the federal loan.

Many students have had their student loans forgiven by becoming teachers in public schools, being a nurse or medial professional in state run hospitals, working for the government or military, or spending time working for a non-profit or volunteering.

Being disabled.

If you are disabled and can prove this with documentation, the federal government may forgive some or all of your federal loans. Keep in mind that the disability has to be permanent and one that prevents you from working, attending school, or unable to pay the loans back.

Working an eligible job or being permanently disabled are the primary two criteria for having a federal student loan forgiven. Keep in mind that eligible jobs usually do not include jobs in the private sector or non-profits that are religion based.
For more details on potential ways to have your federal student loans forgiven in part or in full, contact the lender who handles your student loans.