Scholarship Tigers–Students Helping Each Other Find Money for College

Certain student loans can be forgiven, depending on the type of loan and/or the place where you work. I first wrote this in 2010, but I have checked the links to make sure they work and are relevant today.

At the end, I have included other links to educate yourself on this topic.  Make sure you check the information below More 2013 Information to read the latest.

 I must warn you that I haven’t fully studied all of this information, and it’s very important to do due diligence in researching this topic. Verify, verify, verify, as financial columnist Zac Bissonette wrote in the introduction, “The Four People You Meet When You Apply to College, and the Lies They Tell,” to his book, Debt-Free U.

I have been reading Lynnette Khalfani’s Zero Debt for College Grads: From Student Loans to Financial Freedom.

Ms. Khalfani writes this about the Federal Student Loan Repayment Plan: “Under the Federal Student Loan Repayment Plan, the government allows any federal agency to repay your FFEL, direct, Perkins, or HEAL loans in order to attract or retain highly qualified workers in the federal government. Interestingly, each agency sets its own definition of highly qualified.”

She points out that the Office of Personnel Management (OPM) is the best source to learn about this program.

Here I provide you with a direct link to the Student Loan Repayment Program Fact Sheet: http://www.opm.gov/oca/pay/studentloan/index.asp

Office of Personnel Management: http://www.opm.gov/

Ms. Khalfani also tells where you can find a listing of “all federal departments and agencies in America”: http://www.usa.gov/Agencies/Federal/All_Agencies/index.shtml

For a thorough discussion of this program and places that you can work, including independent agencies–such as AmeriCorps, CIA, or Export-Import Bank of the United States (ExIm)—or quasifederal agencies—such as Legal Services Corporation (LSC) or the Smithsonian Institution, I highly recommend you read the section of Ms. Khalfani’s book, “Repayment Assistance Programs Nobody Told You About” in Chapter 9, Eliminate Student Loans with Loopholes: Qualify for Loan Cancellation or Get Others to Pay.

More 2013 information

http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts

This federal government website lists distinctions between what type of loans can be forgiven and which cannot.

On the right hand side, you can find quick links to Repayment Plans, Teacher Loan Forgiveness, Public Service Loan Forgiveness, and Total and Permanent Disability Discharge.

http://www.finaid.org/loans/forgiveness.phtml

Finaid.org is well respected and has done a good job discussing Loan Forgiveness.

http://www.finaid.org/loans/forgivenesstaxability.phtml

This second Finaid.org article deals with the taxability of student loans if they are forgiven. (Many people do not know that if a debt is cancelled or forgiven, you might receive a 1099 form that lists the debt forgiven as income. Be aware of this issue before you settle any debts, and if you do make an agreement with anybody, then get that agreement in writing).

By the way, student loan debt still will be with anyone even if he or she declares bankruptcy. 

http://www.ecmc.org/details/loanForgiveness.html

Here you can find several links that detail programs about Loan Forgiveness. I have not researched ECMC and have no opinion on the organization.