What Is the Loan Forgiveness Programs For Teachers & Doctors?
The Public Service Loan Forgiveness plan is a United States governmental program, which was established under the Higher Education Act of 1965 to give indebted graduates a means out of their massive federal student loan debt burden through employment in public service positions. To qualify for the government’s direct loan forgiveness program, graduates must demonstrate their commitment to public service by participating in education initiatives which benefit the community. These service activities may include community service, voluntary work, political activity or other direct activities which further the interests of the beneficiary’s selected field.
One of the many nurses who have utilized the federal loan repayment program is Betty Jo Claffy, an emergency room nurse. Ms. Claffy is currently working as a surgical technologist in a trauma unit at a major city hospital. Through her service, she has developed strong connections with a local nutrition agency, a cancer support group, and has been fortunate enough to have had the chance to serve on the board of directors of a local environmental organization.
There are many qualified individuals waiting to become employed in healthcare professions. When they apply for federal grants or loans to assist with education, there are specific circumstances that qualify them for forgiveness of the financial obligation. To ascertain if your financial situation will allow you to participate in these programs, your application will be reviewed by the lender. Loan forgiveness is based on several factors which must be determined by the lender. The most common is the severity of your financial situation.
Loan forgiveness for teachers is available through a special five year’s program, which is authorized by the Higher Education Act. The purpose of the loan forgiveness for teachers program is to assist in the transition from college to career teaching. To qualify for this loan forgiveness program, graduates must demonstrate that they are not eligible for Pell grant and have not made any student loans during their academic career.
In order to find out if you are eligible for the five-year student loan forgiveness program, contact your lender. The lender will be able to tell you how much money you need to repay and when you qualify for forgiveness. If you qualify for the forgiveness, you will pay back the loan in five years. It is important to note that there is no grace period during which you are eligible to apply for forgiveness.
There is an option for teachers to deferment after five years. With deferment, you do not have to worry about repaying the loan. Teachers who agree to this deferment option can extend the period up to a total of seventeen,500 hours. This forgiveness benefit is only available to teachers who agree to the deferred repayment plan.
Loan forgiveness is also available to individuals who are eligible for unemployment benefits who have not been able to find gainful employment as a result of losing their job. The forgiveness is not available for student loans, but student loans can be consolidated into one loan with the assistance of an approved lender. Loan repayment begins after employment certification is obtained.
Loan forgiveness programs for doctors are available through the Health Professions Pre-Graduate Program (HPPP), which is offered by the American Association for Medical Research (AAMR). For this program, candidates must have graduated from medical school and have a national board certification in their field. Students must qualify for federal income taxes and be eligible for Medicaid if they are in their first two years of college. The program offers a one time payment of a fee and no interest while students are in school.