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What is student loan forgiveness?

Students in the United States who are beginning to feel overwhelmed by their student loan debt can apply to go on to a student loan forgiveness programme. The program offers to drastically reduce a person's debt in return for them agreeing to take up a career in a certain field or industry. This can be anything from volunteer work to joining the military. Depending on the program, a student can have from $3,000 right up to $100,000 wiped from their student loan debt.

Student loan forgiveness programme are backed by the United States federal government and mainly cover student loans which have been issued through their own federal programs, such as Perkins. The forgiveness programs can help a student with any debt, even personal or family loans will be considered depending on a person's individual circumstances. The program will either tell the person's new employer to clear part of their loan or they will provide the funds for the person to clear part of their loans themselves. The amount taken off a person's debt is considered income, and is therefore subject to tax. However, the benefit of going on a student loan forgiveness programme is worth the cost in tax.

If your student loan forgiveness programme is made under any of the state's programs which are entitled to funds from the public health service you will not be taxed. There are literally hundreds of different loan forgiveness programs available to people who are feeling stressed about their educational debt. You can have a look in the student loan forgiveness programme directory for a program that suits your specific needs. Currently the most popular programs lie in the teaching and medical professions.

 

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