Top 3 Things to Know About Stafford Federal Student Loan Forgiveness

By | Stafford Forgiveness
22 Jan 2012

Has the economy gotten you financially strapped? Are you searching for ways to ease the stress on your depleted bank account? Many graduates have found themselves in exactly this position wondering what they can do to ease the financial burden created by their numerous student loans. Most borrowers look into refinancing or consolidation options; though these are excellent methods to reduce your debt and make monthly installments easier to manage, wouldn’t it be better if you didn’t have to repay the loan at all?

One of the most common forms of federal loans is the Stafford; as it is well-known, federal loans can only be consolidated with compatible government loans. This often excludes it from common consolidation programs. Most borrowers continue to struggle to make the extra payment necessary to satisfy their federal loan agreements. Most graduates fail to discover that Stafford federal student loan forgiveness programs are in existence, and can be utilized to greatly reduce or completely eliminate their federal student loan debt.stafford federal student loan forgiveness

Forgiveness & Consolidation

Many graduates confuse the terms forgiveness and consolidation. Student loans are often consolidated in order to ease the financial burden on the borrower by combining all of his loans under one repayment plan. Not only does this reduce the amount of paperwork and lenders with which the borrower must keep up, it can also reduce the total payment amount each month. Though the monthly installments are smaller, the downside is that most graduates end up repaying much more than the amount they borrowed since the repayment period is greatly extended.

If the borrower qualifies and opts for a Stafford federal student loan forgiveness program, he can completely or partially cancel his educational loan. This means that there are either no monies to be repaid, or a reduced amount to be repaid.

Paths to Stafford Federal Student Loan Forgiveness

Stafford federal student loan forgiveness in not a myth; programs exist that allow the borrower’s loans to be fully or partially canceled if they meet certain qualifications. The most common types of requirements necessary to receive Stafford student loan forgiveness include performing volunteer work, entering into military service, and to teach or practice medicine in high-risk communities.

Of course there are other ways to get Stafford federal student loan forgiveness; this includes practicing law via public interest or non-profit positions, becoming an occupational or physical therapist at private healthcare facilities, and participating in certain law enforcement positions in Alaska.

Other Circumstances Leading to Forgiveness

There are a few special circumstances in which a borrower is entitled to Stafford federal student loan forgiveness. The borrower may qualify for a complete or partial forgiveness under any of the following scenarios:

  • You did not receive a refund that was owed.
  • Your signature was forged.
  • You become totally and permanently disabled.
  • Your loan is discharged due to bankruptcy.
  • You or the dependent for which you borrowed the loan passes away.

There are other scenarios in which a borrower may qualify for Stafford federal student loan forgiveness. If you feel that you are eligible for loan forgiveness, contact the creditor that holds your loan.

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4 Comments

  1. […] the borrower qualifies in addition to opts for just a Stafford Federal Student Loan Forgiveness method, he can certainly completely or maybe partially cancel his or her educational personal loan. […]

  2. […] Federal Stafford Loan: This type of Federal Student Loan is available more widespread to a higher amount of students. The amount you are able to get each school year will greatly depend upon if you are found to be financially independent or financially dependent, which school you are attending, and the current amount of tuition for the year. The financial aid department at your college will be determining if you are eligible for this loan or not. The Stafford Student Loan can be either subsidized or not. Your financial requirement will be the deciding factor in your eligibility. A subsidized Stafford Loan is also decided upon by your financial requirement. This type of loan allows the government to cover all interest while you are enrolled in college, while you are within a student loan deferment program, and during your grace period. An unsubsidized Stafford Loan is available to all students regardless of financial requirement, however, you will be financially responsible for all interest accrued on the loan. […]

  3. […] Top 3 Things to Know About Stafford Federal Student Loan Forgiveness […]

  4. […] Top 3 Things to Know About Stafford Federal Student Loan Forgiveness | Read Sources […]

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