Loan Forgiveness: Do You Qualify?

If you’re finding yourself financially strapped trying to pay back your college loans, there may be a solution for you. Depending on your circumstance, the Federal government may forgive all or part of your Federal education loans.

How Can I Qualify For Loan Forgiveness?
Loan forgiveness may be obtained if you have performed or are currently performing certain types of services, such as:

Teaching full-time in low-income elementary or secondary schools;
Working full-time in certain child care facilities that serve low-income families;
Performing volunteer work with certain organizations;
Working full-time for ten years in qualifying public-service jobs;
Serving in the Armed Forces; and,
Serving in public interest or nonprofit positions within the medical or legal field.

If you believe you meet one of the above qualifications, or have questions about the qualifiers, you need to contact your loan servicer to see if you qualify for the program. You should be able to locate your loan servicer’s contact information on your loan statements.

Loan Forgiveness and Taxes
Should you qualify for loan forgiveness, keep in mind that the amount that is forgiven will be treated as taxable income from a Federal income tax perspective. When dealing with income taxes on a state level, you will need to contact your state’s Department of Taxation.