Although not technically considered a type of student loan consolidation, student loan forgiveness is a very rare situation when the U.S. government will cancel all or a portion of a borrower’s student loans. To qualify for loan forgiveness eligibility, a borrower must:
Perform military service
Engage in volunteer work
Practice or teach medicine in specific communities or
Satisfy other requirements set forth by the forgiveness program
Borrowers can obtain loan forgiveness from volunteer organizations such as 1) the Peace Corps, 2) AmeriCorps, and 3) Volunteers in Service to America (VISTA). Students who are members of the Army National Guard may qualify for its Student Loan Repayment Program, which provides loan forgiveness up to $10,000. The National Defense Education Act allows students who work as full-time teachers in an elementary or high school that serves financially-disadvantaged students to have part of their Perkins loans forgiven. A good number of law schools provide loan forgiveness to students who serve in non-profit or public interest positions.
Borrowers can also obtain loan forgiveness from the U.S. Department of Health and Human Services, which sponsors the Nursing Education Loan Repayment Program and the National Health Service Corps. Beneficiaries of these loan forgiveness programs are registered nurses and physicians who agree to work for a specific number of yearsin areas lacking adequate health care. Many private healthcare institutions and hospitals recruit physical and occupational therapists by way of loan forgiveness. Medical students can also avail themselves of the following loan repayment programs:
Disadvantaged Health Professions Faculty Loan Repayment Program
US Air Force, Army, and Navy Financial Assistance Programs
The National Institutes of Health (NIH) Educational Loan Repayment Programs
American Academy of Family Physicians Foundation
Nicholas J. Pisacano MD Memorial Foundation Inc.
Indian Health Service (IHS) Loan Repayment Program
