Student Loan Repayment Program
Are you worried about paying off student loans? With the cost of a college education on the rise, many students and recent college graduates are finding themselves overwhelmed by debt. The Armed Forces can help you manage your college debt with special loan repayment programs for qualified students.
Many people are not aware that the Army, Navy and Air Force recruiters can offer you special programs for repaying student debt.
Army
The Army's Loan Repayment Program (LRP) is a special enlistment incentive that the Army offers to highly qualified applicants at the time of enlistment. Under the LRP, the Army will repay up to $65,000 of a soldier's qualifying student loans.
Huge Education Discounts
Your GI Bill and Tuition Assistance can get you huge discounts on college tuition. Find out how much money you can save while using the benefits you've earned!
Army Eligibility
To be eligible for the Army LRP you must:
Decline enrollment in the Montgomery GI Bill in writing, using DD Form 2366
Have LRP guaranteed in writing in the enlistment contract (DA Form 3286-66).
Be a non-prior service accession.
Enlist with a high school diploma.
Have an Armed Forces Qualification Test score of 50, or higher on the Armed Services Vocational Aptitude Battery (ASVAB).
Enlist in one of the critical military occupational specialties (MOS). These MOS change quarterly. The local Army recruiter will have the current list.
Possess a loan that was made, insured, or guaranteed under the Higher Education Act of 1965, Title IV, Part B, D, or E prior to entering active duty.
To get up to date information on which career fields (MOS) qualify contact your nearest Army recruiting office today. See this page for more details.
Navy
The Navy's Loan Repayment Program (LRP) will also pay for up to $65,000 of loans acquired from a post-secondary education. The LRP is available to all active Navy enlisted positions! See this page for more details.
Navy Eligibility Requirements
You should talk to your Navy recruiter to see if your situation qualifies for the loan repayment program. Your recruiter can also help you explore other opportunities the Navy has to offer.
Air Force
The College Loan Repayment Program (CLRP) is a program created for all non-prior service persons considering enlistment in the Air Force. If you have taken some college courses and have accumulated debt, this great program may be for you. Participants must sign up for this program when signing the enlistment contract. Under CLRP repayment maximum is $10,000 per recruit. Go to the "Education" section of the Air Force site for more details.
Air Force Eligibility Requirements
To find out how you can earn money for college with the Air Force, contact an advisor today.
Here is how it works:
After each completed year of active duty your service branch will make a payment of 33-1/3 percent or $1,500, whichever is greater, on the total remaining original unpaid principal balance.
Friday, September 25, 2009
Sunday, September 20, 2009
Income based Repayment Program
The Income-based Repayment Program (IBR) is an alternative payment option for borrowers who cannot afford to pay off their federal student loans under the standard 10-year repayment plan. Monthly payment under the IBR plan is based on the borrower’s income and family size.
Borrowers getting qualified for the IBR plan will continue student loan payments for 25 years after which any outstanding student debt will be forgiven or wiped out. However, if you’re into public service, that is, if you work as a teacher or in government service or at a non-profit [501 (c) (3)] organization, then you may qualify for loan forgiveness after 10 years of payment.
If your student loan payments are relatively higher than your income, you have a chance to qualify for the Income-based Repayment Program. You need to contact your lender (s) and prove that you’re in partial financial hardship.
The lender will determine if you’re eligible for the program.
In order to qualify, you will have to fill out IRS Form 4506-T and authorize your lender to collect your tax returns for the current year and past 3 years. Once you qualify for the IBR plan, you may remain in it even when you’re out of financial hardship.
The federal student loans which can be paid off using the Income-based Repayment Program are:
Stafford loans
Grad PLUS loans
Most of the federal consolidation loans
Loans which are already in default cannot be included in the program.
Borrowers getting qualified for the IBR plan will continue student loan payments for 25 years after which any outstanding student debt will be forgiven or wiped out. However, if you’re into public service, that is, if you work as a teacher or in government service or at a non-profit [501 (c) (3)] organization, then you may qualify for loan forgiveness after 10 years of payment.
If your student loan payments are relatively higher than your income, you have a chance to qualify for the Income-based Repayment Program. You need to contact your lender (s) and prove that you’re in partial financial hardship.
The lender will determine if you’re eligible for the program.
In order to qualify, you will have to fill out IRS Form 4506-T and authorize your lender to collect your tax returns for the current year and past 3 years. Once you qualify for the IBR plan, you may remain in it even when you’re out of financial hardship.
The federal student loans which can be paid off using the Income-based Repayment Program are:
Stafford loans
Grad PLUS loans
Most of the federal consolidation loans
Loans which are already in default cannot be included in the program.
Saturday, September 12, 2009
Peace Corps
Volunteer programs. Peace Corps volunteers with Perkins loans can cancel as much as 70 percent of their debt after four years of service. Peace Corps volunteers who complete a two-year term can wipe out 30 percent of their Perkins loans' balance. Another 20 percent can be cancelled upon completion of a third and fourth years of service. Federal student loan payments may also be deferred while serving in the Peace Corps.
Wednesday, September 9, 2009
Help For Public Service Workers
Loan forgiveness for public service employees. The College Cost Reduction and Access Act of 2007 created a new loan forgiveness program for public service employees. This program requires quite a commitment – 10 years working as a public service professional. But the payoff – the cancellation of all remaining federal direct loans after 10 years of service — may be just the incentive a heavily-indebted college grad needs to choose a lower-paying, service-oriented career path.
Eligible public service jobs include everything from emergency management, public health and safety and law enforcement to social work, childcare, library sciences, public interest law services, and jobs serving people with disabilities and the elderly.
To be eligible for this program, you must make 10 years of consecutive, on-time repayments of your federal direct loans. This program also includes federal direct consolidation loans, so it would be possible to consolidate federal Stafford loans into the direct loan program and therefore be eligible for the cancellation of your remaining loan debt after 10 years of service. Keep in mind that the standard repayment period for federal student loans is 10 years. If you choose standard repayment for your student loans and keep up with your payments, your student loans will be paid in full in 10 years. You won't qualify for loan forgiveness because you'll have no remaining debt left to forgive!
Only grads that are eligible for reduced student loan payments, because of very high debt levels or consistently low salaries, would be eligible for this loan forgiveness program. To qualify, they would still need to make 10 years of on-time payments through an income-based or income-contingent repayment plan and work full-time for 10 years in a public-service job.
For more information on this program, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Eligible public service jobs include everything from emergency management, public health and safety and law enforcement to social work, childcare, library sciences, public interest law services, and jobs serving people with disabilities and the elderly.
To be eligible for this program, you must make 10 years of consecutive, on-time repayments of your federal direct loans. This program also includes federal direct consolidation loans, so it would be possible to consolidate federal Stafford loans into the direct loan program and therefore be eligible for the cancellation of your remaining loan debt after 10 years of service. Keep in mind that the standard repayment period for federal student loans is 10 years. If you choose standard repayment for your student loans and keep up with your payments, your student loans will be paid in full in 10 years. You won't qualify for loan forgiveness because you'll have no remaining debt left to forgive!
Only grads that are eligible for reduced student loan payments, because of very high debt levels or consistently low salaries, would be eligible for this loan forgiveness program. To qualify, they would still need to make 10 years of on-time payments through an income-based or income-contingent repayment plan and work full-time for 10 years in a public-service job.
For more information on this program, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Monday, September 7, 2009
Help for Teachers
Loan forgiveness program for teachers. Teachers who are willing to make a five-year commitment to a school in need can get some much-needed help with their student loans. The richest rewards are reserved for science, math, and special education teachers.
Science and math teachers who work in low-income high schools may be able to cancel as much as $17,500 of their federal Stafford loans. This money gets eliminated from a teacher's loan balance after he or she completes five years of teaching at a designated low-income school.
Special education teachers who work in designated low-income schools for five years may be eligible for as much as $17,500 in loan forgiveness for their federal Stafford loans.
Other full-time teachers working in a designated low-income elementary or high school for five years may be able to cancel as much as $5,000 of their federal Stafford loans.
For more information on teacher loan forgiveness programs, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Science and math teachers who work in low-income high schools may be able to cancel as much as $17,500 of their federal Stafford loans. This money gets eliminated from a teacher's loan balance after he or she completes five years of teaching at a designated low-income school.
Special education teachers who work in designated low-income schools for five years may be eligible for as much as $17,500 in loan forgiveness for their federal Stafford loans.
Other full-time teachers working in a designated low-income elementary or high school for five years may be able to cancel as much as $5,000 of their federal Stafford loans.
For more information on teacher loan forgiveness programs, visit the U.S. Department of Education's web site: http://studentaid.ed.gov/
Saturday, September 5, 2009
Help for Nurses
Nursing Education Loan Repayment Program. This program repays up to 60 percent of student loans for registered nurses who agree to work full-time (32 hours or more a week) for two years in a non-profit facility in need of nurses. Nurses that choose to work a third year have the opportunity to repay an additional 25 percent of their student loans.
Repaying as much as 85 percent of student loan debt after 3 years is some deal. For more information, visit the web site of the Health Resources and Services Administration.
http://bhpr.hrsa.gov/nursing/loanrepay.htm
Repaying as much as 85 percent of student loan debt after 3 years is some deal. For more information, visit the web site of the Health Resources and Services Administration.
http://bhpr.hrsa.gov/nursing/loanrepay.htm
Help for People Working in Healthcare
National Health Service Corps. Doctors, nurse practitioners, physician assistants, dentists, dental hygienists and mental health professionals including psychologists, social workers, and marriage and family therapists can wipe out a big chunk of their education debt by choosing to work for two years in an underserved community.
In exchange for two years of full-time employment, up to $25,000 in student loans will be repaid each year. Further loan repayment is available if you choose to serve beyond the two-year contract. One-year amendments are available with up to $35,000 available in loan repayments.
Healthcare professionals with extra-heavy student debt burdens could pay down as much as $50,000 in loan debt in just two years and as much as $85,000 of loan debt in three years. Talk about a great opportunity.
For a searchable list of job opportunities in the National Health Service Corps, visit: http://nhsc.bhpr.hrsa.gov/jobs/index.asp
In exchange for two years of full-time employment, up to $25,000 in student loans will be repaid each year. Further loan repayment is available if you choose to serve beyond the two-year contract. One-year amendments are available with up to $35,000 available in loan repayments.
Healthcare professionals with extra-heavy student debt burdens could pay down as much as $50,000 in loan debt in just two years and as much as $85,000 of loan debt in three years. Talk about a great opportunity.
For a searchable list of job opportunities in the National Health Service Corps, visit: http://nhsc.bhpr.hrsa.gov/jobs/index.asp
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