Loan Forgiveness Programs

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Books

Search our catalog online at http://www.vsac.org/LibrarySearch. Patrons may borrow books either by coming to the Resource Center in downtown Winooski, or by making an interlibrary loan request through their local school or public library.

Teacher Cancellation/Deferments

National

Cancellation for Perkins Loans: If you have a loan from the Federal Perkins Loan Program, you may be eligible for loan cancellation for teaching full-time at a low-income school or in certain subject areas — http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelperk.jsp?tab=repaying

Cancellation for Stafford Loans: If you received a Stafford loan on or after October 1, 1998 and have taught full-time for five years in a low-income school, you may be eligible to have a portion of the loan cancelled. This applies to Stafford Loans, both subsidized and unsubsidized, and in some cases Consolidation loans — http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp?tab=repaying

Deferments for Stafford or SLS loans (Supplemental Loans for Students): If you have a Stafford or SLS loan made on or after July 1, 1987, and before July 1, 1993 or had Stafford debt outstanding from that period when you took out additional Stafford loans, you may be eligible for deferment if you're teaching full-time in a teacher shortage area. This provision also applies to loans offered in earlier years through the Guaranteed Student Loan Program — http://studentaid.ed.gov/PORTALSWebApp/students/english/deferffel.jsp?tab=repaying

Teach for America is calling upon our country's most promising future leaders to commit two years to teaching in urban and rural public schools and to become lifelong advocates for change — www.teachforamerica.org

Vermont

Cancellation for college loans: The Vermont Teacher Diversity Scholarship Program, formerly known as the Coming Home Project, is intended to support students from diverse backgrounds who agree to teach in a designated target area. Students interested in becoming Scholars must apply for the program — www.vsc.edu/AboutUs/tabid/94/Default.aspx

Health Professions Cancellations

National

Association of American Medical Colleges provides a directory of state and other loan repayment/forgiveness and scholarship programs — http://services.aamc.org/fed_loan_pub/index.cfm

National Health Service Corps loan repayment program is for clinicians who commit to providing primary care service in a health shortage area for a minimum of two years — http://nhsc.hrsa.gov/loanrepayment/

Indian Health Service loan repayment program will repay all or a portion of health professionals’ educational loans in return for two years of service at an IHS facility — www.ihs.gov/JobsCareerDevelop/DHPS/LRP/

National Institutes of Health offers a number of loan repayment programs to researchers — www.lrp.nih.gov

U.S. Department of Health & Human Services Nursing Education Loan Repayment program provides repayment in return for two years of service in areas experiencing a shortage of nurses — http://bhpr.hrsa.gov/nursing/loanrepay.htm

National Guard offers a Healthcare Professionals Repayment Program that provides up to $50,000 in loan repayment when healthcare professionals agree to a three-year service commitment with the Guard — www.1800goguard.com/explore/medical/hplrp.php

Vermont

Vermont Area Health Education Centers administer the following programs — www.med.uvm.edu/ahec/TB8+BL+I.asp?SiteAreaID=94

• Primary Care Educational Loan Repayment: award recipients are obligated to one year of service for each year of the award; the purpose of the program is to ensure a stable and adequate supply of primary care providers to meet the health care needs of Vermonters.
• Dental Educational Loan Repayment: award recipients are obligated to one year of service for each year of the award; the purpose of the program is to help recruit and retain dentists in Vermont and increase access to dental care for Medicaid recipients.
• Nursing Educational Loan Repayment: award recipients are obligated to one year of service for each year of the award; the goal of the program is to ensure a stable and adequate supply of nurses (LPNs and RNs) to meet the health care needs of Vermonters.
• Freeman Educational Loan Repayment for Physicians: award recipients are obligated to one year of service for each year of the award; the purpose of the program is to ensure a stable and adequate supply of physicians to meet the health care needs of Vermonters.

Legal Profession

Equal Justice Works provides information on loan repayment assistance programs for law students who serve in public interest or non-profit positions — www.equaljusticeworks.org

Service-Based Programs

Public Service Loan Forgiveness: If you have a Federal Direct Loan, work full-time in a public service job for 10 years, and make 120 payments on your Direct Loan (starting after October 1, 2007), you may be eligible to have the remainder of your loan forgiven — http://www.finaid.org/loans/publicservice.phtml

AmeriCorps provides an education award of $4,725 for one full-time year of service; volunteers are eligible to receive two awards, which may be used to repay student loans — www.americorps.org

Peace Corps volunteers may apply for deferment of student loans during their period of service, as well as partial cancellation of Perkins Loans (a 15-percent cancellation of the outstanding balance on Perkins Loans for each year of service) — www.peacecorps.gov

Other Loan Forgiveness Information

FinAid offers detailed Loan forgiveness information — www.finaid.org/loans/forgiveness.phtml

Mapping Your Future also offers extensive information on loan forgiveness — www.mappingyourfuture.org/paying/forgiveness.htm

Updated: December 2008

Compiled by: VSAC Resource Center, 10 East Allen Street, PO Box 2000, Winooski, VT 05404
Call: 800-642-3177 toll-free, or Burlington area 802-655-9602 • Fax: 802-654-3765 • E-mail: info@vsac.org

The Vermont Student Assistance Corp. was established by the Vermont General Assembly in 1965 to help Vermonters obtain the information and financial resources they need to pursue their education goals beyond high school.