6 Student Loan Forgiveness Options You May Not Know About

6 Student Loan Forgiveness Options You May Not Know About

1. Volunteer
While it’s not strictly a loan forgiveness program, AmeriCorps volunteers are eligible for an education award after they complete their term of service. If you serve full-time for one year, you’ll receive $5,775, which can be used to pay off student loans or pay for future educational expenses. Plus, any time you spend serving full-time in AmeriCorps counts toward public service loan forgiveness.

If you are an AmeriCorps VISTA volunteer and decline the education award in favor of a cash stipend, you may be eligible to have a portion of your Perkins Loans cancelled.

2. Pull up stakes
Cities and states want to attract young, educated residents, and some are willing to pay off a portion of your student loans to get you to relocate. Niagara Falls, New York, will give you nearly $7,000 to pay off your student loans if you agree to live in certain neighborhoods in the city for up to two years. If you move to one of 77 counties in Kansas that’s been designated a Rural Opportunity Zone, you may be receive up $15,000 for your student loans.

3. Work in an eligible profession
Working for the government or a non-profit is one path toward loan forgiveness, but those aren’t the only careers where you can get help with your debt. Doctors, nurses, veterinarians, dentists, and others who work in healthcare professions may qualify for forgiveness if they work in under-served areas. Forgiveness may also be available for teachers and lawyers. In New York, young farmers can have up to $50,000 in student loans wiped out. Firefighters, police officers, and even some librarians may have their Perkins Loans forgiven.

To find out what loan forgiveness programs might be available in your area, check out this ebook from American Student Assistance.

4. Serve in the military
Joining the armed forces isn’t for everyone, but if you do elect to serve, you may be eligible to have some of your student loans forgiven. The Army’s College Loan Repayment Program may repay up to $65,000 in loans if you serve for at least three years and meet certain other requirements. Members of the armed forces who serve in a hostile fire or imminent danger area may have all of their Perkins Loans discharged. Time spent in the military also counts toward public service loan forgiveness.

5. Work for a generous employer
It’s not yet a common benefit, but a handful of companies now offer to help employees pay off their student loans. PricewaterhouseCoopers rolled out such a benefit in 2015 and financial firm Fidelity recently announced a similar initiative. Employees who’ve worked at Fidelity for at least six months will receive $2,000 a year toward their loans, up to $10,000.

6. Other discharge options
Loan discharge or forgiveness is also available to borrowers in a handful of other extreme situations. If you’re totally and permanently disabled, you may be excused from paying your federal student loans. Discharge may also be an option if the school you attended closes while you’re still enrolled or shortly after you leave, or if you’re a victim of fraud.

In rare cases, student loans can be discharged in bankruptcy. The process is difficult and often unsuccessful, so most borrowers don’t pursue it. However, the White House has indicated its interested in loosening the rule around student loans and bankruptcy, so more borrowers may eventually be able to pursue this path.