HOW STUDENT DEBT FORGIVENESS PROGRAMS BENEFIT TEACHERS AND GOVERNMENT EMPLOYEES?
The federal government has come up with several programs to support the teachers and government employees with their student loans. These programs vary according to the loan applied and the job role. One can choose the program which will be applicable to them.
The Perkins Loan Forgiveness Program
This program will offer low-interest rate loans for students who wish to take up the career path as a teacher and who are in need of financial assistance. This program was basically designed for the underprivileged students who will need financial assistance in order to keep up with their post-secondary education. Under the Perkins Loan program, almost 1700 schools are registered. The applicants of this loan will have to file a FAFSA to benefit from them. The recipients of this loan will have to file the Perkins promissory note to be eligible for the loan.
Through this loan, the recipients are able to get 15 percent of their loan forgiven in the case of the first and second year teaching period. This should also be a full-time role. At the time of the third year and the fourth year service the percent will be raised to 20 and during the fifth year of service, it will be further increased to 30 percent.
Federal TEACH Grant
Through this program does not technically act as a loan forgiveness program as the grants will be applied before the loan debt has been built up, this program still holds its own benefits. Through this program, a student will be able to receive $4000 for a year under tuition assistance who will be future teachers. They should also promise to work in low-income areas in full-time positions. This program will need the TEACH Grant Agreement to formally serve in the program which will also require signing the bond.
This will be in a request to the TEACH Grant Service Obligation which requires the student to teach low-income children in the high-requirement area for a period of minimum 4 years within 8 years of receiving the TEACH Grant money. Compared to other programs, this one can be acquired easily. Since undergraduate education takes four years a payment of $16000 for this time period is worth a lot of money to consider this program if the career goal is to become a teacher.
Student Loan Forgiveness Programs for Government Employees
Any person who works for the government in the Local, State or in the Federal level will be eligible for this program. They will also stand to receive the benefits of the Public Service loan forgiveness program in addition to this one. This program is probably the best and the fastest among the student loan forgiveness programs present as of now. This means that under this program if the person serves in the given role, then they get to have their student loan forgiven after just 10 years worth of payments. These monthly repayments will also be set based on the monthly income. So, one need not worry on the high bar set by the loan repayment and the loan interest rates.