Student loans can be a great investment in your future, or can be a huge burden if not fully thought out or abused. If you currently have a Student Loan Debt Forgiveness student loan or are thinking about getting student loans, you should know that student loans CANNOT discharged in bankruptcy. This means that they will stick with you for the rest of your life, unless you pay them off, or, if you are lucky enough, qualify for student loan forgiveness. Before going further, check out my Student Loan Calculator and read my post on Getting Out From Student Loan Debt for some other ideas on student loan debt.

Under certain circumstances, all or part of your student loan can be canceled in a process called Student Loan Forgiveness. To qualify, you must perform volunteer work, perform military service, practice medicine in specific communities, or meet other criteria.

The great thing about student loan forgiveness, unlike other debt, is that the amount forgiven is NOT treated as taxable income.

Volunteer Work

While some volunteer work can be a huge life commitment, organizations such as VISTA all you to have a semblance of life while volunteering. They also offer money to be used towards yourstudent loan debt, which is great!

Military

The military currently has a Student Loan Repayment Program. Each year, 15% of the student loan balance will be repaid by the program, up to the branch maximum.

Teaching

Students who become full-time teachers in an elementary or secondary school that serves low-income families can have a portion of their Perkins Loan forgiven. This program forgives 15% of your loan in each of the first and second years, 20% in each of the third and fourth years, and the remaining 30% in the fifth year.

Legal Studies

Many law schools forgive the student loans of students who serve in the public interest or for non-profits. These loan repayment assistance programs provide loan repayment or forgiveness, lower interest rates on loans, or postponed payment schedules. Most programs have income limitations and specify which types of employment qualify.