While it can take a long time to pay back debt, there is a way to get your balance wiped out all at once: by qualifying for student loan forgiveness. If you work for a certain amount of time in a job with student loan forgiveness options, you could get your student loan balance canceled.
While student loan forgiveness jobs aren’t always the most high-paying, there’s often plenty of opportunity due to a shortage of workers to fill them. And what you might sacrifice in income, you could make back with loan forgiveness after a few years.
But before you can get loan forgiveness, you need to make sure your job qualifies. Here are some that do:
Federal agency employee
Public service worker
Doctor / physician
AmeriCorps, Peace Corps and other qualifying volunteer organization workers
11 jobs that offer student loan forgiveness
Here’s our list of jobs with student loan forgiveness so you can decide if any would be right for you.
Here’s a little-known fact that applies to federal agencies: If they are having a hard time finding new employees to fill open slots, they are allowed to offer student loan repayment assistance.
To qualify, the new employee must sign a contract to work for the federal agency for a minimum of three years. The agency is allowed to pay up to $10,000 per year per employee for federally insured loans, but the total assistance given cannot exceed $60,000 per person.
If you work in a qualifying organization, such as a government agency or nonprofit, you could qualify for loan forgiveness.
Full-time public service employees with Perkins loans can get full cancellation of their loans, as long as they haven’t consolidated them. Potentially eligible workers include family and child services employees, law enforcement and correctional officers and public defenders.
Public servants with Direct loans (also known as Stafford loans) could pursue loan forgiveness through the Public Service Loan Forgiveness (PSLF) Program. PSLF is available to any worker in a government organization at any level (federal, state, local, etc.), as well as tax-exempt organizations or for-profit organizations with a qualifying service.
Any debt forgiven through the PSLF program is not considered taxable income, so you won’t have to pay taxes on the forgiven amount. Once your balance is discharged, you shouldn’t have to pay another cent on your student loans.
There are several options for doctors in need of student loan repayment help. The Association of American Medical Colleges maintains a list of loan assistance programs for doctors by state.
Additionally, medical professionals who serve in the military have access to forgiveness programs as well. For example, through the Navy Financial Assistance Program (FAP), medical residents receive an annual grant of $45,000 on top of residency income, which can be put toward medical school debt.
Check out our full guide to student loan repayment for doctors for more options.
In addition to public service forgiveness options targeted specifically at graduates working in law, there are some other sources of loan repayment help that lawyers can take advantage of.
For instance, every spring, the Department of Justice opens up its Attorney Student Loan Repayment Program (ASLRP) to help recruit and retain new talent. Justice Department employees must have at least $10,000 in federal student loans to qualify.
Any automotive aftermarket industry manufacturer who is an employee of the Specialty Equipment Market Association (SEMA) can apply for the SEMA Loan Forgiveness Program.
The SEMA program awarded $272,000 to 97 winners in 2019 in scholarships and loan forgiveness. To be eligible to apply for the program, you must have been a SEMA employee for at least a year, hold a degree or certificate of completion from a college or technical school and have graduated with at least a 2.5 GPA.
If you are a registered nurse, an “advanced practice registered nurse” (such as a nurse practitioner) or a Health Professional Shortage Area (HPSA) facility nurse, you may be eligible for student loan repayment assistance through the Nurse Corps Loan Repayment Program.
The nurses chosen to receive assistance through the Nurse Corps Loan Repayment Program will get 60% of their qualifying student loan balance forgiven, in exchange for a minimum two-year service commitment. Also, qualifying participants may receive an additional 25% off their original loan balance if they complete a third year of service.
Please note that in this program, the full loan award amount is taxable. The amount you’ll pay in taxes will be far less than the amount of the loans, but it’s still a consideration to bear in mind.
If you would like to review the qualifications and fine print of the program, check out the Nurse Corps Loan Repayment program requirements. And for even more options, head to our full guide to student loan forgiveness for nurses.
If you’re a special education teacher, teach in a low-income school district or work in an underemployed subject area or a teacher shortage area, you may qualify for the Teacher Loan Forgiveness Program.
If you qualify, you could receive up to $5,000 or $17,500 in loan forgiveness, depending upon what subject matter you teach and your number of years of service. Note that to qualify, your student loan debt must be from federal direct loans or Stafford loans.
If, however, you have federal Perkins student loans, you could be eligible for the Perkins Loan Teacher Cancellation program. Through this program, you could potentially receive cancellation of up to 100% of your Perkins loans. In order to qualify, you need to teach at a low-income school, teach an underemployed subject area or serve as a full-time elementary or secondary school special education teacher.
The cancellation of your student loan debt will come in steps. For the first and second years of teaching, you will receive a 15% cancellation of your loan. For the third and fourth years, you will receive a 20% cancellation of your loan. For the fifth year of teaching, you will receive a 30% cancellation of your loan.
An added bonus is that each amount canceled per year also includes the cancellation of any interest that had accrued through the year.
Did you know that certain volunteer organizations offer student loan forgiveness opportunities? Don’t let high student loan debt deter you from taking the opportunity to help others.
Certain volunteer organizations like the Peace Corps, AmeriCorps and Volunteers in Service to America (VISTA) all have student loan awards or repayment options. You can apply for these after you have completed your term of service with the organization.
The terms and conditions on these programs vary, so visit their websites to learn more about student loan programs for volunteers.
Although dentists tend to make a high income — a median of $156,240, according to the Bureau of Labor Statistics — they also accrue a huge amount of debt before they start working. The American Dental Education Association found that the average dentist with student loans in the Class of 2019 left school owing a whopping $292,169.
Luckily, there are some loan repayment assistance programs, or LRAPs, for dentists, such as the Ohio Dentist Loan Repayment Program and Maryland Dent-Care Loan Assistance Repayment Program. Programs such as these offer significant loan assistance to dentists who work in qualifying areas or workplaces.
Like dentists, pharmacists take on a lot of education debt to earn their degrees. According to the American Association of Colleges of Pharmacy, pharmacists in the Class of 2019 who borrowed student loans took on an average of $172,329 to finance their education.
Here, too, assistance is available: Several national LRAPs provide financial help to health care providers, including pharmacists. Plus, some state programs, such as the California State Loan Repayment Program, will pay back all or a portion of your loans if you establish residency and practice in a qualifying area.
Not only could working with animals be a fulfilling career, but it could also help you get forgiveness for your student loans. The U.S. Department of Agriculture offers $25,000 per year for three years in student loan repayment assistance to vets who work in underserved areas. Programs such as the North Dakota State Veterinarian Loan Repayment Program help veterinarians who agree to work in shortage areas.
According to the American Veterinary Medical Association, 44% of veterinarians in the Class of 2018 left school owing more than $200,000 in student loans, while the average debt for all graduates was $143,111. Any program that offers relief in the form of forgiveness or repayment assistance could be a huge help as you work toward financial independence.
Should you pursue jobs that offer student loan forgiveness?
Most student loan forgiveness jobs have strict requirements, contracts and a minimum term of employment to qualify for loan cancellation. Also, you have to be current on your student loan payments — your loans can’t be in default.
Once you meet the requirements, though, you will receive debt repayment, cancellation or forgiveness. Giving just two or three years of your professional life to a qualifying job may be the answer to your student loan problems.
Every student loan repayment and forgiveness program has its own set of qualifications and eligibility requirements, so make sure that you do your research before pursuing any of these or other loan forgiveness programs.
If you do qualify, these programs could be a life-changing way to rid yourself of burdensome student loans.
Paula Pant contributed to this report.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 6.65%1||Undergrad & Graduate|
|1.99% – 7.10%2||Undergrad & Graduate|
|2.99% – 6.44%3||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 6.43%4||Undergrad & Graduate|
|3.19% – 6.08%5||Undergrad & Graduate|
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1 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
ANNUAL PERCENTAGE RATE (“APR”)
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
ELIGIBILITY & ELIGIBLE LOANS
Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).
Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.
The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.
POSTPONING OR REDUCING PAYMENTS
After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.
We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020 and is subject to change.
2 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.19% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 15, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 6/15/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.2% effective May 10, 2020.