Student Loan Forgiveness Programs 2011

Student Loan Forgiveness Programs 2011 - If you are under pressure due to the student loans taken for higher education which you are unable to repay, then you can get respite from student loan forgiveness. This can help you in eliminating some of your student loans or remove all of it if you choose to work in specific areas which involve serving the people like military service or volunteer work.

Student Loan Forgiveness can help to eliminate as much as few thousand dollars to about over $100,000 of student loans. It however, receives lesser number of applications every year as many graduates are quite unaware of this facility. This forgives is dependent on the kind of degree you have chosen and your current profession.

Eligibility for the loan forgiveness program in 2011

You will be eligible for student loan forgiveness program if you are employed full-time in an occupation which would benefit the general public and be of service to the community like the following:

• Child Welfare Workers
• Dentists
• Early childhood educators
• Foreign language specialists
• Teachers teaching students from the low-income communities or who are not very proficient in English language
• Researchers in the field of applied sciences, technology, engineering or mathematics
• Librarians, Public sector employees,
• Nurses, Nutrition professionals, Occupational therapists
• School counselors, Speech-language pathologists and audiologists, Superintendents, principals and other educational administrators

 Benefits of Student Loan Forgiveness in 2011

In the recent scenario, if you are a student, then you will have to pay about 15% of discretionary income towards loan repayment every month. This can leave you with quite little balance and at time even in debt. To ease students like you, President Barack Obama introduced the Obama Student Loan Forgiveness Program which has had its share of controversies and debates.

Through this program, he announced a lot of reforms which can reduce your burden of repayment of student loans. Though it can provide you a lot of relief when in debt due to student loans, you can avail it only if you have chosen Federal Stafford, Grad Plus, and Perkins loans offered by government. It is however not applicable if you have student loans by Sallie Mae, Chase or other private banking institutions. It can help you tremendously in various ways like:

• Loan Repayments Percentage helps in reducing the monthly instalment from about 15% of discretionary income to 10%.
• Loan Period under the Obama Student Loan Forgiveness Act is reduced from 25 years to 20 years which indicates that if you have been paying your monthly instalments on time and without defaulting for the duration of 20 years then the remainder of the student loan will be forgiven by the federal government.
• You will get added benefit like further reduction of period before forgiveness if you choose to opt for a public service job. The benefit can be as much as 10 years reduced before loan forgiveness resulting in only 10 years of student loan debt.

Therefore, student loan forgiveness program has better features in 2011 helping students to have lesser burden of paying huge amount of money as student loan every month.
source :http://www.studentloaninfo.org/studentloantypes/student-loans-forgiveness.html