Jobs with loan cancellation programs
Aside from severe cases, such as the death or total and permanent disability of a borrower, there are conditions in which you may be eligible to cancel all or a portion of your student loan.
FFEL and Federal Direct Loan: Teacher Loan Forgiveness
The Teacher Loan Forgiveness (TLF) Program is intended to encourage individuals to enter and continue in the teaching profession. Eligible applicants can receive loan forgiveness for up to a combined total of $5,000 of subsidized and unsubsidized FFEL or Federal Direct Loans.
This program is available if you:
- Did not have an outstanding balance on an FFEL or Direct Loan on Oct. 1, 1998, or on the date you obtained an FFEL or Direct Loan after Oct. 1, 1998;
- Teach full-time at least five consecutive, complete school years as a full-time teacher in an elementary or secondary school designated as a low-income school;
- Are not in default on the loan for which you are requesting forgiveness;
- Have not received a benefit for the same teaching service through the AmeriCorps Program;
- Completed one of your five years of qualifying teaching service after the 1997-1998 academic year; and
- Took the loan for which you are requesting forgiveness before the end of your fifth year of qualifying teaching.
For more detailed information about the eligibility requirements for teacher loan forgiveness, visit Federal Student Aid
Federal Perkins Loan: Teacher Loan Cancellation
To be eligible for a Federal Perkins Loan teacher cancellation, you must be teaching full-time at a low-income school as determined by your state’s education agency. The low-income designation is based on statistics gathered about the population of each elementary and secondary school in your state. You can find more information about this program on the Federal Student Aid Website.
FederalDirect Loan Borrowers: Loan Forgiveness for Public Service Employees Program
Through the College Cost Reduction and Access Act of2007, Congress created the Loan Forgiveness for Public Service Employees Program. This new program provides for the cancellation of the remaining balance due on eligible federal student loans after the borrower has made 120 monthly payments after Oct. 1, 2007, on those loans under certain repayment plans while employed in certain public service fields.
For more information about the Loan Forgiveness for Public Service Employees Program, take a look at this PDF provided by the government.