Student Loan Forgiveness

Monday, November 24, 2008

AmeriCorps

The federal government will cancel all or part of an educational loan under certain conditions. This benefit is available provided the borrower has not defaulted on his or her loan. Student loan cancellation is also called loan forgiveness.

Education loans may be cancelled when a borrower undertakes volunteer work.

When a borrower works for AmeriCorps for a period of 12 months, he or she is entitled to receive a stipend of up to $7,400 plus $4,725 toward repayment of education loans.

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