Loan Forgiveness

Many times individual states, the federal government, or specific industries themselves attempt to recruit for professions or fields of employment that may experience a sudden surge in job openings due to circumstances such as unexpected industry growth or a large percentage of retirements.

Loan forgiveness programs encourage up and coming professionals to pursue study in a certain field by offsetting their incurred student loan debt with payments for certain work-related requirements the student-borrower fulfills.

Nursing, teaching, providing child care, serving in the Armed Forces—these are all categories for loan forgiveness programs offered either by the federal government or state agencies. Once a student meets education and work-related requirements (such a service in a low-income area, service for a specific duration of time, etc.), the state or government agency then makes payments toward the student-borrower’s loan balance.

Many types of loan forgiveness programs exist, and you should contact your state agency to determine if a program exists for your particular profession and what the exact requirements are for the program.