Justin Draeger: Hi, my name is Justin Draeger spokesperson for the National Association Financial Aid Administrators. I'm going to be talking to you about successful student loan repayment and student loan forgiveness programs.
Speaker: What is student loan forgiveness?
Justin Draeger: In some instances, the federal government provides programs that will forgive or cancel out a portion of your student loan balance. In those instances you generally, you have to do meet with several criteria. You have performed volunteer work or work in the public interest or in some sort of public service job. Perform military service or volunteer service, teacher practice in medicine in certain types of communities. Or meet other criteria specified by the forgiveness program.
The most common types of forgiveness programs are probably the Teacher Loan Forgiveness Program, which is available to students who become full time teachers in elementary or secondary school. And that those—that students from low-income families. Another popular loan program is the Public Service Loan Forgiveness Program which is new begun on October 2007. It’s offered the students working in a public service job, which generally means for the government or a public non-profit.
There are also of other—well not technically forgiveness programs organizations that offer systems to borrowers in paying off their loans. Not includes the military, through military service loan forgiveness. AmeriCorps, PeaceCorp and other volunteer based organizations, private entities like private employer sometimes offer loan forgiveness or loan repayment provisions. And state agencies, a lot of states offer programs where there are high-need like in science, technology, engineering or math or in nursing that are looking for students to go into those fields and if you do and meet their criteria they’ll offer you some loan forgiveness.
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