College Loan Program Repayment

With the cost of a college education on the rise, many students find themselves turning to college loan program repayment after graduation. Certain public service jobs allow students to defer payments or receive an annual forbearance to pay for more schooling. College loan program repayment takes many forms, thus diversifying the areas students can implement their natural talents to serve community and country.

Looking for a college loan program repayment plan?
Learn about college loan program repayment today.

Programs for loan forgiveness or loan cancellation come in a variety of occupations and industries:

Common options for college loan program repayment forgiveness include:

• AmeriCorps- a national service network in which volunteers earn an educational award of up to $4,275 for working 10-12 months
• Volunteers in Service to America (VISTA) – a branch of AmeriCorps with a focus on alleviating poverty, hunger, homelessness, and illiteracy with volunteers for at least 1,700 hours receiving $4,725 in loan forgiveness
• Teach for America- recent education graduates are selected to work in rural and inner-city schools and receive salary, benefits, and loan forgiveness of $4,725
• Peace Corps- volunteers may defer repayment on their federal loans and receive a 15% cancellation on Perkins loans for every year of service
• National Defense Education Act- full-time teachers in low-income school districts can receive loan forgiveness on their Perkins loans.
• National Health Service Corps- health professionals working in under-served areas for at least two years can receive up to $25,000 per year in federal reimbursements
• The U.S. military- students who enlist in the military now can receive up to $20,000 for Army Reserves or Air National Coast Guard and $10,000 for the Air Force or Navy Reserves

The average total cost of one academic year at an in state, public university was over $17,000 for the 2007-2008 school year according to “Trends in College Pricing” by The College Board. Even more staggering, the Department of Education and The College Board estimate out-of-state tuition costs at over $27,000, and at the epitome of costly, private school students spent over $35,000 per academic year on average in 2007. Clearly, the cost of education proves almost inaccessibly unaffordable to many youths without the assistance of loan parental assistance and loan programs; the latter of which 65% of undergraduates relied on during the last decade according to the National Center for Education Statistics. Loan cancellation internships and positions are an excellent opportunity for students to work off their educational debts while offering inherently valuable community, national, and global service.

According to Department of Education, loans qualifying for the college loan repayment program include the Auxiliary Loan Assistance for Students, the Stafford Student Loan, the Parents Loan for Undergraduate Students (PLUS), the Consolidated Loan Program, the Federally Insured Student Loan, the Perkins Loan, and the Supplemental Loan for Students. Of all these loans, reducing school financial aid repayment obligations proves financially wise and prevents prolonged, expensive periods of financial obligations. For example, The Stafford Student Loan, a common federal loan that available to any American student, has a fixed interest rate of 6.8% with a lengthy repayment period of up to 25 years. On the other hand, Sallie Mae, a popular private lending company, offers The Sallie Mae Signature Loan. The loan offers a much shorter repayment term of 15 years; however, the interest rate is variable and consistently higher than government loans.

No matter the lender or type of loan, a good number of students will still need to seek financial help after graduation. These options may help students get their feet on the ground right after college, allow for more savings and investment opportunities, offset the massive cumulative interest repayments, and in the meantime, allow them to serve their country.

Looking for a college loan program repayment plan?
Learn about college loan program repayment today.